By on December 11, 2008
  • 2008 Chevy Equinox: $5,000 cash back
  • 2008 GMC Canyon: $5,000 cash back
  • 2008 Pontiac Torrent: $5,000 cash back
  • 2008 Cadillac SRX: $6,000 cash back
  • 2008 Chevy Silverado regular cab, extended cab or crew cab: $6,000-$8,000 cash back
  • 2008 GMC Sierra regular cab, extended cab or crew cab: $6,000-$8,000 cash back
  • 2008 Chevy Silverado/GMC Sierra heavy duty: $9,000 cash back
  • 2008 Chevy Silverado/GMC Sierra heavy duty diesel: $10,000
  • 2008 Chevy Tahoe/Avalanche: $8,000 cash back
  • 2008 GMC Yukon: $8,000 cash back
  • 2008 Chevy TrailBlazer: $8,000 cash back
  • 2008 GMC Envoy: $8,000 cash back
  • 2008 Chevy Suburban/GMC Yukon XL: $9,000 cash back
  • 2008 Cadillac Escalade, Escalade ESV, Escalade EXT: $10,000 cash back
  • 2008 Saab 9-7X: $10,000 cash back
  • 2008 Hummer H2: $10,000 cash back
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31 Comments on “GM Piles More Cash on the Hood of 2008’s...”


  • avatar

    Stunning numbers. How long before “Buy one, get one free?”

  • avatar
    Airhen

    So are all these cash rebates GM’s profit on the vehicle, or are they losing money on each deal? If they are losing money, then I sure hope that means they have completely stopped producing all of these vehicles?

    My gosh… what business can survive providing services/ products for less then what it costs to do so?

  • avatar
    no_slushbox

    The SRX deal is interesting. It’s the last chance to get it while is is still a reasonably sized rwd station wagon crossover, before it switches over to the FWD lambda platform, with Cadillac becoming the 17th brand to sell a re-badged version of that platform.

    The Isuzu GMC Canyon seems like a pretty good compact pickup, at least on paper, but I’ve heard bad things about the quality. Also, some recent trade agreements killing the chicken tax mean that we will be getting much better compact pickups.

  • avatar
    Banger

    no_slushbox:

    “Also, some recent trade agreements killing the chicken tax mean that we will be getting much better compact pickups.

    Link, please? As someone who has wished for the Aussie/Thailand/everywhere else Ford Ranger for quite some time, and has been told it’s impossible because of said “Chicken Tax,” your comment has piqued my interest.

  • avatar
    zerofoo

    No deals on the cars worth buying:

    Corvette
    Any of the Lambda SUVs (acadia and the like)
    CTS
    Malibu
    G8

    It’s almost as if GM admits that these cars aren’t worth the sheet metal they contain.

    The only thing GM needs to add to the above list is ONE pickup truck. Everything else must go.

    -ted

  • avatar
    no_slushbox

    “My gosh… what business can survive providing services/ products for less then what it costs to do so?”

    The trick is to have politically connected dealerships and UAW workers.

  • avatar
    golf4me

    Is that off MSRP or in addition to the “red tag” prices? If it’s MSRP, it’s not enough, sorry.

  • avatar
    Pch101

    The chicken tax can be avoided by doing some “assembly” in the US. I may be wrong about this, but I think that installing the bed in the US onto an imported truck may be enough to avoid the tax.

    I suspect that a bigger problem is that the compact truck market outside the US is largely in developing countries that have minimal safety and emissions standards. Making a vehicle that serves the US raises the costs, and might make them too expensive to sell them in those developing countries.

    Manufacturers have to make vehicles that are designed to be sold in the US, they can’t just dump a generic product into this market. If the cost of making those changes is too high, they aren’t going to do it.

  • avatar
    no_slushbox

    Banger:

    I wasn’t sure about which countries. It looks like the “chicken tax” tariff was abolished for Australia and South Africa, but that UAW crying kept a trade agreement removing the “chicken tax” from going through with Thailand. Most of the current production is in Thailand, but this could drive some to move to South Africa.

    This is the cached Google link:

    http://74.125.95.132/search?q=cache:AvWbFeqphwQJ:www.motortrend.com/features/auto_news/2008/112_0808_ford_sub_f150/index.html+%22chicken+tax%22+%22south+africa%22+%22australia%22&hl=en&ct=clnk&cd=2&gl=us

  • avatar

    There are some stupid deals to be had. I just got an email from a GMer friend with 2 extended invites for Employee Pricing. Tacked on to these deals, I could get a Silverado on the cheap cheap. I just priced out a loaded Tahoe LTZ for my sister – MSRP $51K – out the door price = $36K.

    Too bad it’s not in the finances right now…

  • avatar

    @Airhen, I can assure you that GM is no longer producing 2008 model year vehicles listed above. As for 2009s, I can’t be sure.

    @no_slushbox, the next SRX is not on Lambda. It will be considerably smaller, and only two rows, based on a combination of Theta (Vue, next-gen Equinox) and Epsilon (next-gen Opel Insignia). But to your point, it will be FWD-based.

  • avatar
    Banger

    Thanks for the link, no_slushbox. I did some reading and found some interesting links and discussion on the issue. Almost warrants another TTAC QOTD. “Should we abolish the ‘chicken tax?\'” On one hand, you would probably see some very cool, relatively high-mpg pickup trucks. On the other, you just might slowly twist the knife into the heart of the industry America has done better than anyone else, to this point: producing pickups.

    To your note on the GMC Canyon: I figure with $5,000 off and all the toe tag incentives, a $10,000-12,000 Canyon is very doable. If you could get a solid five years out of it…probably worth it. That said, I’d rather have the relative security (and comparatively lacking gremlins) of a Ford Ranger.

  • avatar
    Old Guy Ben

    We’re losing money on every sale, but make up for it in volume.

  • avatar
    law stud

    The amount is off of the dealer cost, or something very similar to redtag price.

    However, watch as dealers try and tell you no. Reality is, even with huge discounts the dealers will still try and stick it too you.

    Fuck it, the trucks suck, Tundra still gets better gas mileage, has a aluminum block V8 with much more horsepower and a 6 speed transmission. Just more bang for the buck even with Gm discounts. Who the hell designed these trucks, cheap crap everywhere, and then WTF with the door handle, it should be easy to reach. Not in the wrong place.

  • avatar
    50merc

    golf4me: “Is that off MSRP or in addition to the “red tag” prices? If it’s MSRP, it’s not enough, sorry.”

    Appears to be off MSRP (so no red tag special on affected vehicles), and that dealers can dip into their margin to sweeten deals. Anyone got definite confirmation?

    Airhen, I think they are losing money on these vehicles. But when cash flow has dried up, and the only way to persuade dealerships to order more cars is to move some metal off their lots, then a below-cost price is better than watching them rust.

    Of course, such discounts simply make some customers even more reluctant to buy anything at normal markup levels. MSRP becomes no more believable than the starting asking price at the Casbah.

  • avatar

    with the “cash back” on an H2, you could go out and buy yourself a fuel efficient new Versa 1.6L stripper.

  • avatar

    It is off the RED TAG price not the MSRP. Read the original post for more info.

    I think these deals increased because there are actually a LOT of these in inventory while earlier sales have reduced the Lambdas etc.

    I also believe many of these factories have idled and as noted these are all 2008s.

    We noted you could get a 390 hp Trailblazer SS for $23K. True, the interior sucks, but 390 hp!

  • avatar
    jayparry

    we have to keep mentioning like Top Gear does in the UK, if the factory is offering rebates up front, that will come off the back in depreciation as well. Unless we all plan to drive our cars until they are scrap metal and donate them to the blind people people, then people should know these arent the ‘deal’ they seem to be

  • avatar
    MagMax

    There isn’t a single vehicle in the list that I would even consider buying.

  • avatar
    Geotpf

    Pch101 :
    December 11th, 2008 at 11:04 am

    The chicken tax can be avoided by doing some “assembly” in the US. I may be wrong about this, but I think that installing the bed in the US onto an imported truck may be enough to avoid the tax.

    This is correct. Before NUMMI existed, Toyota had a small plant in Long Beach, California (near the port where their pickups were delivered in such a semi-assembled form) that did just this.

    The plant still exists, actually. It builds parts as well as assembles Hino delivery trucks. It’s also Toyota’s only plant they fully own in the United States that is unionized, with the Teamsters. (NUMMI is UAW, but it’s technically a joint venture with GM.)

    This is also probably how Mahindra & Mahindra plans on selling pickups in the US starting next year (unless the chicken tax really has ended).

  • avatar
    ERJR

    I was hoping this would have come up in the senate hearings. The issue of why do you need to basically pay your customers to take your cars and how are you going to change this in the next 6 months. I’m sure there would have been no logical answer from Wagoner.

  • avatar
    PeteMoran

    @ Old Guy Ben

    We’re losing money on every sale, but make up for it in volume.

    Mind if I use that one!?

  • avatar
    dastanley

    I’ve never bought a new car with a cash back rebate. Can someone explain to me why GM has an MSRP on a vehicle and then offers a rebate? Why not just lower the MSRP by that amount? Example: Vehicle MSRP $35,000 with $5,000 rebate.
    Why not just lower MSRP to $30,000? Just asking.

  • avatar
    jjacob9105

    Is it true that the dealer advances the rebate and then waits for the factory to reimburse? If so, how will this work now that C11 is looming?

  • avatar
    mel23

    Can someone explain to me why GM has an MSRP on a vehicle and then offers a rebate?

    They don’t ‘plan’ to do this, but realities dictate that they do at times. But I’ve read and heard comments from sales people that customers want to feel they’re getting a deal, so getting to the same bottom line works in some ways better than others.

  • avatar
    PeteMoran

    @ RF

    Any intel on the numbers of these models out in the dealer channel? Are we talking months of over production backlog?

    I think I read that vehicles sales had boosted out to 60+ days? So there’s two months of supply? Is it worse for GM?

  • avatar
    porschespeed

    No deals on the cars worth buying:

    Corvette
    Any of the Lambda SUVs (acadia and the like)
    CTS
    Malibu
    G8

    Perhaps you have not perused a newspaper lately. Or visited a GM dealer. I assure you they are dealing on every single one of those models. And pimpin’ it hard in the paper. At least here in the MidWorst. Where people theoretically buy GM’s crap.

    Yes, even the Vette. (which is a pretty decent car. as long as you don’t look at the interior.)

  • avatar
    ronin

    This is a good sign, because it shows a recognition that they have overpriced their trucks for the market.

    They just refuse to admit that they have overpriced their cars for the market, so only offer fake discounts, the same kind of discounts and rebates that have been available for years. Hence, their vehicles sit on lots.

    They get together in their conference rooms and are not able to admit they don’t control the market price. So the cars sit and sit.

  • avatar
    Gforce

    And the Saturn of all brands is not on that list?

    @ Old Guy Ben

    We’re losing money on every sale, but make up for it in volume. Now how does that work? surely if you’re losing money per unit vehicle sold, volumes can only amply the loss. Or am I missing something?

  • avatar
    Old Guy Ben

    Gforce

    Just an old joke. You want the customer to think you’re actually losing money so they won’t be so shy about parting with theirs :)

    I recall twenty years ago when all the waterbed companies were perepetually “going out of business – everything at close-out prices!” It went on for years.

  • avatar
    fallout11

    Wish GM would just give the cash back and keep the rotten sheet metal. They’d save money in the long run, rather than paying people to “please take our crap off our hands!”

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