By on September 3, 2008

Surprise! As in none. In an article that sets new standards for brevity, Automotive News [AN, sub] reports that General Motors is extending its Employee Discount for Everyone (except GM employees) sale through September. The Wall Street Journal reports that the discounts now cover 80 percent of GM’s ’09 models. And if that isn’t a sign of desperate times– and it surely is– GM is luring existing leaseholders with “Targeted Lease Bonus Cash.” If they come out of their lease before January third (and not a day later), they get money to use towards a purchase or lease on a number of new (’09) GM vehicles. The ’09s included in the deal: Trailblazer ($6k), Tahoe and Tahoe Hybrid ($4k); Silverado/Avalance and Express ($3k); and Impala ($500). The bonus cash has dropped from $2k to $1k for the Corvette, Colorado, HHR, Aveo and C4500. Oh, and the $1k bonus bucks now applies to the Malibu four-cylinder and NOT the six (as before). Another, even bigger change: the bonus cash can be applied to a lease from ANY financial institution (not just GMAC). On the regular rebate side of things, the cash on the hood for the Enclave and Acadia has sunk from $1500 to $1000.  Oh, and GM workers hoping to cash-in on their $500 Farm Bureau Insurance discount are shit out of luck. The discount now only applies to non-GM employees.

Get the latest TTAC e-Newsletter!

Recommended

12 Comments on “GM Extends Employee Discount; Includes ’09s; Bonus Cash Applicable to Non-GMAC Lenders...”


  • avatar
    Ryan

    Oh… Cadillac is still around?

  • avatar

    Those are the same 2009s included last month. No change, RF.

  • avatar
    Redbarchetta

    Robert how about sales stats for August, is Frank working on By the Numbers. I wonder how their sales were last month with the employee give away to everyone. I have a feeling the sales were bad even with the employee pricing. I’m betting their 3rd quarter will be an even worse bloodbath compared to 2nd quarter.

    If have 2 more quarters like the last wont they be almost out of operating capital to keep the lights on and the doors open past New Years?

  • avatar

    Redbarchetta:

    Frank’s standing by to spreadsheet monkey (how’s that for a verb?) the August numbers.

    And yes, this is the race to the finish line; Wagoner has said they have enough cash ’til the end of ’09 under all scenarios. Five months?

    Anyway, that was BEFORE the bailout thingie.

    We’ll see…

  • avatar

    According to the WSJ, instead of a half dozen 2009s, the extended promotion now includes 80% of the 2009 lineup. Link here: http://online.wsj.com/article/SB122044441755894837.html?mod=hps_us_whats_news

    Obviously nobody was surprised to see this happen, and it is a big-time desperation move. If their sales are still down 20%+ in August in spite of the employee pricing, they’re screwed.

    Michael Karesh, thanks for your pricing/advice help in my recent car purchase. I decided to go with the CTS instead of an 09 G37 sedan; I found a leftover loaded RWD 08 DI model and got it for almost $11k off MSRP after rebate, employee price, and $3,500 GM Card earnings.

  • avatar

    ChrisHaak:

    Thanks for the info Chris. I’ve added it to the text.

  • avatar
    Redbarchetta

    Robert: And yes, this is the race to the finish line; Wagoner has said they have enough cash ’til the end of ‘09 under all scenarios. Five months?

    One of us needs a cup of coffee, what 5 months are you talking about, it’s 16 months until the end of 2009.

    Whenever I have seen Wagoner talk about having enough to last until the end of 2009 he says they used conservative estimates for the ECONOMY, GAS PRICES, GM sales numbers and overall vehicle sales. Their conservative estimates on just about everything have been so wrong up until now, why would they suddenly get their financial situation right? And he also says they will be fine barring a depression like senario, but you can tell he is lieing when he says it, just look at his eyes.

    Why would anyone in the position they are in use conservative estimates to determine their survivability unless it’s to put a silver lining on the situation for the public, media and government cronies. They should be using worst case senario and planning for that, talk about dimwits.

    Selling everything for almost no profit, cutting any program they can to save a buck, cranking out the PR machine to insane levels, I think we are seeing a companies last ditch for survival with no clue how to do it. This is all about 5 years too late. We will see in the next 2 months if they start selling almost everything at a loss just to keep some cash flow going so they don’t have to start shutting down production.

    And the bailout can’t help them if the money doesn’t come before they fold. And they have to change the way the money is allocated since retooling old assembly isn’t going to help them keep current production going.

  • avatar
    ronin

    I see the Pontiac G8 GT 2009 now eligible. This was not the case last month.

  • avatar
    jennadoll

    Ryan,
    Yes, Cadillac is still around. Actually the CTS has been one of the life savers for the company. Cadillac is the one brand of GM that is trying to get it right. It’s about image and lifestyle versus price or payment.

    Note to TTAC admin: Thank you for allowing us to speak our minds regardless of if we agree or disagree with the topic at hand. There are other forums out there that claim to do the same, but if they disagree with a comment made then they block, ban, and mark comments as spam. Last time I checked freedom of speech was not spam.

  • avatar
    Bunter1

    “Please take our cars, Puhleeeeeeeeeeeeeez!, Auntie Em, Auntie Em…”

    Uh, sorry about that, meds should kick in soon.

    jennadoll-“Actually the CTS has been one of the life savers for the company. Cadillac is the one brand of GM that is trying to get it right. It’s about image and lifestyle versus price or payment. ”
    Note what ChrisHaak wrote;”Michael Karesh, thanks for your pricing/advice help in my recent car purchase. I decided to go with the CTS instead of an 09 G37 sedan; I found a leftover loaded RWD 08 DI model and got it for almost $11k off MSRP after rebate, employee price, and $3,500 GM Card earnings.”

    I agree is is a nice car but if 11k off is one of their bright spots…

    Just a thought,

    Bunter

  • avatar
    Ryan

    jennadoll,

    “It’s about image and lifestyle versus price or payment. ”

    -Good luck with that…

  • avatar
    HarveyBirdman

    I saw a Saturn ad on TV a few days ago and in addition to the employee pricing, there was a little blurb about additional cash incentives on two models–I think it was the Astra and the Vue. I don’t know the terms, or whether it is specific to the Albuquerque area where I live, but I couldn’t help but note the irony of the set-price marque offering both employee pricing and additional cash incentives.

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • DenverMike: The Chinese aren’t looking to land cars on our shores. They’ll build in Mexico. EVs with...
  • indi500fan: If you take resale value into account, I’d bet the Ford isn’t even close on the financials...
  • TrailerTrash: tomLU86 how you struggle with data. we can discuss the real data all night long, and it would take that...
  • indi500fan: Tweater said that particular Tesla was trying to emulate the SpaceX docking with the ISS.
  • TrailerTrash: exactly. and he DID dive in bringing up his white privilege and how he is uncomfortable in his own...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Matthew Guy
  • Timothy Cain
  • Adam Tonge
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber