GM dealers gets $250 cash for each vehicle sold

[Flybrian]

GM offers dealers incentives
In effort to halt sales slide, automaker will give retailers $250 for each sale through end of Aug

Greg Bensinger | Link to Original Article @ DetNews | Bloomberg News

General Motors Corp. is giving dealers cash awards in a bid to halt a 9.4 percent drop in U.S. sales this year, a program outlined in an internal GM memo.

Retailers will get $250 for each sale made from Aug. 23 through the end of the month, the memo from Jim Bunnell, general manager of GM's Buick, Pontiac and GMC divisions, said. Dealers can use the money to boost discounts offered directly to consumers through most of September, GM sales and marketing chief Mark LaNeve confirmed Tuesday.

GM raised incentives on large trucks this month after sales dropped 22 percent in July. The Detroit-based automaker said last week it slowed production at six North American truck plants because of the slump.

"This seems to say the sales are shaping up worse than they thought they were going to be at this point in the month," said George Magliano, research director for Global Insight Inc. in New York.

Chevrolet spokesman Terry Rhadigan and Saturn spokesman Michael Morrissey said the incentives apply to their divisions. LaNeve said GM has run similar programs as many as five times in the past 18 months as a means to control inventory.

"We have an excellent opportunity to regain our momentum," Bunnell said in the memo.

Sweet September

Dealers may elect to use the $250 they earn in August to sweeten deals in September. The automaker will allow them to apply as many as four $250 "certificates," or $1,000, to the sale of 2006-to-2008 model-year cars and $500 to the sale of light trucks.

GM shares fell $1.14, or 3.8 percent, to $29.18 at 4 p.m. in New York Stock Exchange composite trading. They have declined 5 percent this year and 23 percent since June 30.

"GM is saying, 'Let's get the dealers to really put their best selling muscle behind each sale now, and they'll have a little cash to help them close in September," Magliano said.

Some Northeastern U.S. states are exempt from the program, according to the memo. In those states, dealers can discount by $1,000 some 2006- and 2007-model Buick LaCrosse and Pontiac Grand Prix sedans and GMC Envoy and Buick Rainier sport utility vehicles.

[Sixty8panther]

You can't squeeze blood from a stone.

I lost an Equinox sale to a Rav4 the other day... the girl was a CR brainwash subject, in the end she

bought the smaller, uglier Toyota only because "it's a Toyota" another $250 would not have helped.

[PurdueGuy]

This seems silly, and a waste of money. Doubly so if part or all of that money isn't going to the salesperson or customer - the two key people in a sale. If it's just extra money in the dealership's pocket, then where's the extra motivation?

[FUTURE_OF_GM]

Can't wait to see the tirade of negativity over this months sales...

GM: either a dead company walking or too little too late?

(Notice that the company is dead either way)

[pow]

You can't squeeze blood from a stone.

I lost an Equinox sale to a Rav4 the other day... the girl was a CR brainwash subject, in the end she

bought the smaller, uglier Toyota only because "it's a Toyota" another $250 would not have helped.

Also because it is quicker (scary fast with the V6), better handling, better made, and more fuel efficient?

[Newbiewar]

Also because it is quicker (scary fast with the V6), better handling, better made, and more fuel efficient?

wait... the rav4 is faster, better handling, better made, and more fuel efficent then the chinese theta platform...

woo... man, dont beat a dead horse man... your wasting your breath and time...