Comments on: GM Employee Pricing Returns

By: GM Employee

GM Employee — Fri, 22 Aug 2008 23:27:00 +0000

GM Employee Pricing uh? I went to http://www.EmployeePricingGM.com and they had me a killer price in minutes. That pricing is better than our regular GM Employee Pricing. I checked I think GM Employee Pricing rocks and plan on buying a new Tahoe with the $5,000.00 cash back. The delaer told me they might extend the GM Employee Pricing out thru the end of September. We’ll see.

By: limmin

limmin — Tue, 19 Aug 2008 14:08:41 +0000

So who’s complaining about employee pricing?
I’m waiting to hear if I can get the EP along with substantial rebates on a certain GM economy car.

If I can, I’m joining the GM clan. Toyota makes better cars but they don’t make ‘em with $5k total discounts!!

By: jar527

jar527 — Tue, 19 Aug 2008 13:00:12 +0000

Here’s a plan for GM. If they are really worried about a shortage of parts in the near future and they have all these plants that aren’t doing anything. Why not disassemble the 2008s at a shuttered factory with labor your paying to do nothing anyway and ship the parts to an operating factory to be reassembled as a 2009. They could say that it’s their way of saving the planet by recycling cars.

By: John Horner

John Horner — Tue, 19 Aug 2008 05:34:23 +0000

“… their histories with the Saturn and Sebring were enough to make them life long; “not” customers.” I’ve been calling this Joining the Never Again Club for many years now. I should have trademarked the phrase :).

I saw a local department store with a big banner out front declaring “Employee Pricing For All” last week. What once was a novel marketing idea is now so commonplace as to be silly.

Ever since Lee Iaccoca admonished us to “Buy a Car, Get a Check” the US automakers have been falling all over themselves with pricing bs.

Would someone please, please stop the noise? I am sick and tired of being yelled to/at by marketing messages every where I go. The desperation is sickening.

By: hltguy

hltguy — Tue, 19 Aug 2008 03:19:39 +0000

GM is also offering the employee pricing on some 2009 model vehicles, like the Cobalt. To me, that definitely sounds like a company in big trouble.

By: yankinwaoz

yankinwaoz — Tue, 19 Aug 2008 02:31:28 +0000

This whole “X dollars off” I keep reading is silly. Off of what? An overpriced invoice to begin with. That kind of thinking means you will go broke saving money.

The question that needs to be asked instead is “Bottom line… how much?”

By: BPGGUY

BPGGUY — Tue, 19 Aug 2008 02:18:04 +0000

Hey Don….. The dealer does get the 5% you speak of but please remember that they would have received 3% anyway in holdback allowances. The gain for the dealer is 2% which still is higher than most of the giveaways that we do to stay competitive.

So you are right but it is nowhere near a field day for the dealer or their sales personnel. They get to be paid a “mini” on every vehicle they sell which in some cases can be as little as $50.00. Try spending hours working with a customer, delivering the vehicle, following up, and then being there for any issues that may arise for that amount of income.

Oh..that is about $36.00 after taxes. Now, what was that you were saying about the dealer making out great?

By: BPGGUY

BPGGUY — Tue, 19 Aug 2008 02:04:10 +0000

The strategy behind this type of marketing scheme does not favor profit. Never has and never will . It does allow their dealers to clear their lots so as to be able to replenish them with shiny new 09 models.

My concern as a sales person having sold GM products for over 20 years is that we are presenting our vehicles as distressed merchandise when in fact they are some of the finest quality ever. Gotta sell it! Get it off the lot! Whatever it takes!

GM needs to learn that if we have the vehicles that the customer desires they will come. This industry has changed dramatically over the last two decades and GM needs to be once again the invovator and not the follower.

Thank goodness we have import products at our store.

By: Cicero

Cicero — Tue, 19 Aug 2008 00:37:14 +0000

GM should start paying its vendors’ invoices in Hummers, Suburbans and Silverados instead of cash. Then they wouldn’t have to sell the damn things at all.

By: taxman100

taxman100 — Mon, 18 Aug 2008 23:58:53 +0000

I’d buy a GM. The only issue for me is there is no reason to buy a new car when the one you have is perfectly fine.

The wife and I have one car that is 8 years old, and they other one is 6 years. Both run perfectly fine, and have been paid off for 5 years.

One gets used to not having a car payment.

By: RobertSD

RobertSD — Mon, 18 Aug 2008 22:58:45 +0000

Everyone is selling at ridiculous discounts right now. GM is certainly not alone. The local Toyota dealer is going through its end of year events and has 4-cyl Camry’s for $4000 off MSRP. This is supposedly the car that everyone wants. The V6’s have even more on the hood. The Tundras are pushing $12,000 off. The Siennas are pushing $10,000 off! Whether official Toyota rebates or dealer cash (so that it doesn’t look like a rebate), even the mighty are struggling.

It’s just a terrible market and inventories have to be worked down at some point. Even the Honda dealers are dealing on Civics!

By: Verbal

Verbal — Mon, 18 Aug 2008 22:54:09 +0000

In other news, I saw a Dodge commercial this weekend in which they quoted 40% off MSRP for trucks.

By: Kevin Kluttz

Kevin Kluttz — Mon, 18 Aug 2008 22:53:01 +0000

otto:

Now THERE’S a plan. Only GM would run out of cash faster because they would have to be paying the “customers” to keep the cars (or reasonable facsimiles thereof).

I hope I spelled “facsimile” correctly.

Hi, Robert! I’m actually being good!!!

By: Happy_Endings

Happy_Endings — Mon, 18 Aug 2008 22:50:34 +0000

Can GM sell a car if there isn’t 0% financing or employee pricing attached to it? More and more, it seems they believe they can’t. And it seems most Americans just wait for inevitable promotion before buying one of their vehicles. And this was after they swore they never were going to go this route again. What are the odds that this new promotion lasts beyond Labor Day?

By: OTTO SALES

OTTO SALES — Mon, 18 Aug 2008 22:02:54 +0000

One to a ah ah “customer”please.Lets make em free
to start,then pay what you think they are worth
sometime in the future.

By: hltguy

hltguy — Mon, 18 Aug 2008 21:44:02 +0000

Reuters did report today that Silverados have a $5,000.00 rebate, plus the employee pricing, for a total of $8,000.00 off sticker price.
According to the same article, the employee pricing will also include some 2009 models, including the Cobalt. So employee pricing is already on vehicles that have not even arrived to the dealerships? And on the fuel efficient models also? This is going to do wonders for the already suppressed trade in values.
Last year I purchased a new Dodge Ram (hugely discounted with custom wheels thrown in free). I paid the truck off last week. Two days ago I received a call from the local Dodge dealership sales manager who said “I understand you just paid off your vehicle’, umm “Yes”, he said “we have a great selection of new Dodges priced to sale.” I told him you guys must be desperate as I have a 2007 truck, just paid off and you are already calling me? his response “We really have to move some vehicles.”
GM stock took a big hit today.

By: Redbarchetta

Redbarchetta — Mon, 18 Aug 2008 21:43:41 +0000

This includes ALL models? Is the G8 on that list?

By: NickR

NickR — Mon, 18 Aug 2008 21:43:19 +0000

I’d like to know what the annual cycle is for car sales. In general I can see the haste in doing this, but it seems to me that doing this before fall/winter rolls around is especially. Kids tuition bills, weather sucks, no sense flogging a new car through this winter etc.

By: jaje

jaje — Mon, 18 Aug 2008 21:35:13 +0000

daro31 – pierce that corporate veil!

Yes GM toe tag sales are back – seems buyers tend to shop in order to buy a deal rather than the vehicle itself. D2.8 have conditioned their customers to never buy their cars unless it’s a steal.

By: daro31

daro31 — Mon, 18 Aug 2008 20:57:13 +0000

I am looking for some people to loan me some money to start a car company, here is my plan!

I am going to design a car that is nothing special, with parts from suppliers that I have beat into submission and get trapped into doing business with me. I have the highest paid auto assembly workers on earth and a lot more of them than I really need. I have guaranteed them medical care and huge amounts of money if I don’t have enough for them to do.

I intend to pay myself and a few buddies millions of dollars in salaries no matter how business goes and make sure that no matter what I have guaranteed multi million dollar pensions.

We plan to sell the product at a loss just so we can keep some cash flow going and appear to be a going concern.

Please contact me if you would like to invest in this venture, ROI’s should start in 2010.

By: don.b

don.b — Mon, 18 Aug 2008 20:49:21 +0000

“Employee pricing kills dealers too, but since when as gm looked out for them?”

Wrong-o-matic buckaroo, but thanks for playing.
GM dealers make exactly 5% of the vehicle’s MSRP at employee pricing, which in turn is about ten times as much as they make in regular retail sales.

This move was done to help the dealers, who I hope all burn, slowly.

By: AG

AG — Mon, 18 Aug 2008 20:34:13 +0000

So, do all these discounts mean GM is selling the cars at a loss?

By: Frantz

Frantz — Mon, 18 Aug 2008 20:32:57 +0000

Employee pricing kills dealers too, but since when as gm looked out for them? Dealers make so little money on a new car anyway (unless you buy it right off the truck when they still have holdback.. but holdback disapears in interest payments when they sit on the lot for months). So you make the profit for a dealership $0.. and on top of that some of the buyers of used cars suddenly (and smartly.. if buying a gm can be considered at all smart) get a great price on a new car instead. So if a dealership is hurting right now.. after wed they may be looking to close their doors (helping gm slim down). Plus if its like the last time we did this pricing ford and chrysler will tag along just to stay competitive

By: akitadog

akitadog — Mon, 18 Aug 2008 20:28:50 +0000

To top off the employee pricing, I just got something in the mail telling me I could use ALL my GM Card earnings PLUS an extra $500 on any GM vehicle.

This reeks of desperation, as there has always been a limit to how much earnings can be used per model. Usually $1000 (Vette, Malibu), $1500 (Every other car) or $2000 (on SUVs and pickups).

I’ve been using the card in the hopes that 3 years down the road, I could afford a Vette, or the next-gen Sky Red Line or next-gen G8, but I’m afraid I won’t be able to use my earnings at all the way things are going for GM. I just bought a car in Feb. (German) and my wife’s car is only 2 years old (Japanese). I can’t afford a toy car just yet, but when I can, GM may not exist. I’m not a GM fanboy, just trying to be optimistic and want to support the home team, if/when they build something I both want to buy and can afford.

By: SkiD666

SkiD666 — Mon, 18 Aug 2008 20:20:26 +0000

Just wondering, aren’t almost all car manufacturers in the US putting cash on the hood to clear out ‘08 models?

Are GM’s discount levels with “Employee Pricing” any different than they currently are or is there going to be an actual decrease in the prices.