GM: Total Confidence?
GM is still trying to bean count their way out of this mess. But, thankfully, they’re using better quality beans. The powers that be (or were in this case) have designed a new program that affords customers the opportunity to once again become conspicuous consumers of GM products. Two of these items are old hat. The 5-year/100,000-mile warranty is now, get this, a 5-year/100,000-mile warranty. Did we mention GM has a rather large PR department? You also can get one year of OnStar which, again, isn’t newsworthy. But there are a couple of interesting additions designed to minimize the “fear factor” of making a dumb car buying decision.
GM will now offer what Hyundai offers when it comes to automotive unemployment insurance. Buyers will get up to $500 per month in payments for their financed ride if they lose their job. It’s good for up to nine months. The unfortunate soul in question will have to qualify for unemployment benefits. I personally wonder how many of GM’s own employees will take advantage of this offer given the new economic realities.
The second one is a really sticky wicket. GM has created a “Value Protection Program” that will guarantee trade-in prices at the “clean NADA retail value.” This one takes major courage because NADA retail values tend to be overinflated. Only banks with sub-prime tendencies and overtly optimistic new car dealers (with equally gullible buyers) will take these types of valuations seriously. On the other hand, what else does GM have at this point? Inventory. Months and months of inventory. Let the paying of Peter, to finance Paul, for the detriment of all the taxpayer Mary’s out there, begin.
More by Steven Lang
Comments
Join the conversation
At least with Ford and GM you can keep the car for 9 - 12 months while you try to find another job (good luck with that!). With Hyundai you make payments or end up with no job and no car. Now it's even tougher to get a job. Goodbye frying pan, hello fire......
The feds should allow that 10 percent hand-out (up to 8K$ max) given to house buyers to those losing their homes to buy a Big 3, 2.8, 2.1, 2.009, whatever, van or truck so the newly homeless can live in that vice a tent, cardboard box, whatever.
The title of this blog should be: GM - Total Incompetence...