GM To Up Incentives. A Bit. Or Not. Depending.

Robert Farago
by Robert Farago
gm to up incentives a bit or not depending

Schmoozing with Automotive News [sub] at the North American International Auto Show, GM Marketing Maven Mark LeNeve has declared that the automaker is "willing to boost incentive spending in 2008" to move the metal. But then "We've broken that cycle of incentive spending." Of course, "you still have to be competitive." To which GM CEO Rick Wagoner quickly added "On the flip side, I don't see us needing to be leading that parade." So… GM's willing to boost incentive spending to keep from losing market share in '08, but they don't think they'll have to, unless they do, and if they do, they'll be reacting to other automakers' incentive spending rather than starting an "incentive war," which they will fight to win even if they didn't start it. Gotcha. Even less realistically, LaNeve promised to limit GM's daily rental fleet sales to 15 percent of GM's total. Unless…

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  • Mikey Mikey on Jan 14, 2008

    SexCpotatoes: Oh yeah 2008 will be a rough year in the car/truck making buisness,thats a given.As far as the whole economy,and the "R"word?Thats 50-50 according to the experts. The big 3 will NOT!file for bankruptcy,not now nor in the near future.Big shakeups,mergers,massive downsizing?maybe. As far as workers getting stiffed,and VEBAS being looted?Yeah you got that right,thats another given.

  • Redbarchetta Redbarchetta on Jan 14, 2008
    incentives, interest on credits, interest on alien platforms and parts, interest on debt, UAWs., car recalls. I wonder how this company makes any money? They lobby the government for bailouts and money to retool factories and they sell the profitable parts of the business to keep the bleeding parts going. mikey Bankruptcy wont really be up to the morons in charge. It's all dependent on their ability to pay their mounting debts which becomes harder and harder every day. The red ink is going to be what pushes them over the edge. My dad used to say the same kind of stuff 2 years before Delta filed, at the time they made $2bil in profit. He also said the same stuff before Pan Am disappeared from the face of the Earth, TWICE. My advice to you is to take the sweetest early retirement deal they offer as soon as you can rather than go down with the ship. A lot of my dad's Pan Am buddies decided to stick with Pan Am instead of take the Delta buyout or early retirement when they had the chance and when all was said and done they were left with nothing except a pink slip and a governement run pension.

  • Mikey Mikey on Jan 14, 2008

    I hear you Red and thanks. I did a lot of research on the Airlines issues.The biggest problem we face in Canada,is our pension laws, vastly different from the U.S. As it stands now active or retired we stand in the same line with all of the other crediters. Canadian and Ontario laws are changing the sooner the better. In Sept the CAW/GM contract comes up and we will eat 2 tiered wages with or without Buzz Hargroves blessing. That SHOULD generate the sweetest package to date. Mikey will take the money and run. Thanks again for the tips Red,you can never have too much info.

  • Redbarchetta Redbarchetta on Jan 14, 2008

    I feel for you man, cause I somewhat know what your going through. I experienced this as a teenager with my dad and the demise of Pan Am. The family meetings were depressing. Hearing and feeling(financially) the issues from the inside about a company I grew up all my life with(I took my first Pan Am flight while my mom was pregnant with me) and was watching management scuttle the ship with my family on board. They were really a bunch of f*ck-ups that last decade, and I see a lot of parallels with GM's bunch. Is this some kind of class they teach at the Ivy Leagues with a textbook that all the corperate bafoons follow. I guess if you are insulated from your actions the outcome doesn't phase you much. It's a shame when it hurts all the hard working people who made the company what it is.