GM to make payments for customers who lose jobs

[Dragon]

http://www.google.com/hostednews/ap/articl...3ujUsQD9792JTO0

DETROIT (AP) — General Motors says it will make car payments for some customers who lose their jobs.

The auto maker's new CEO Fritz Henderson says under GM's new "Total Confidence" program, the company will make up to nine car payments of $500 each for customers who have lost their jobs through no fault of their own.

Customers must qualify for state unemployment to be eligible for the program. The program starts April 1 and runs until April 30.

The news comes hours after rival Ford Motor Co. said it would take over customers' payments of up $700 for a year in the event of job loss.

Henderson, formerly chief operating officer of General Motors Corp., replaced Rick Wagoner who stepped down Monday at the government's request as the Detroit auto maker seeks more federal aid.

[BuddyP]

Are existing GM employee's excluded? Serious question.

[SAmadei]

This needed to be done two weeks before Hyundai did it.

I would have bought a G8 GXP on the spot, as I saw the writing on the wall. Too late for me now.

[siegen]

[SoCalCTS]

This needed to be done two weeks before Hyundai did it.

I would have bought a G8 GXP on the spot, as I saw the writing on the wall. Too late for me now.

because people who would buy a Hyundai and people who buy GM are the same demographic?!?!

[SAmadei]

because people who would buy a Hyundai and people who buy GM are the same demographic?!?!

Huh? You mean 'employed' demographic? That's not my point.

My point is that GM needs to lead with these incentives, not copycat Hyundai... also that, IMHO, this is too little, too late. Unemployment rates are curtailing, and in general if you were going to get laid off, you already did (or already found out)... so its an empty gesture.

[Intrepidation]

Once again GM is following someone else...Hyundai no less. Seriously, you'd think someone at Ford, Chrysler, or GM (or anywhere else for that matter) would have though of this sooner.

[FloydHendershot]

Shouldn't the horse be after the cart?

[daves87rs]

I'm thinking this might not be the best idea....

[regfootball]

what this does.....will pry some fence sitters off the fence. Might just be enough to reverse the downward trend and hopefully put things on a bit of an uptick again.

and maybe gain some market share in the immediate future.

honestly, if this had come out in january before i got cut, it might have enticed me to buy anyways. especially the GM part about guaranteed value.

this is really another version of the things GM did after 9/11. What is different. Last time it was to keep factories running at volume. This time its about selling enough to keep the company alive. In neither case yet would we say it contributes to a positive position for profitability.

[Intrepidation]

I'm thinking this might not be the best idea....

Tell that to Hyundai, who has actually been enjoying sales increases.

[GMTruckGuy74]

Hmm... this could be helpful to some people here on C&G who need to replace their upcoming lease return vehicle and may not have a job come this summer...

[cletus8269]

so uh, where is this money coming from? I mean as long as my grandkids will be paying for other peoples houses, i guess they could pay for other people's cars too.

[GXT]

"I think I may lose my job, so I guess I should go buy a new Hyunda, GM or Ford!"

If you think there is a possibility that you may lose your job you shouldn't be buying a new car. When did our society get so focused on instant self-gratification?

[cletus8269]

When did our society get so focused on instant self-gratification?

about 5 yrs before things went poof is my guess.

[Teh Ricer Civic!]

This is an awful idea.

Hyundai's idea is actually halfway decent because if people cannot make their car payments they get the car back and can then resell it as a used car.

It is a virtual no-lose situation for Hyundai.

Now for GM and Ford, this represents ways to severely lose cash on cars sold if a lot of people lose their jobs.

[SAmadei]

If you think there is a possibility that you may lose your job you shouldn't be buying a new car. When did our society get so focused on instant self-gratification?

Around the time people started buying cars on credit.

Unless you're name is on the company's incorporation papers, you generally can be let go tomorrow. If you think that you're that indispensable, that you are only fooling oneself.

That said, I am in a bind, since I would like to purchase my first new car (and possibly last) while there is still product I like. Unfortunately, it is during a tough period, and I have held off knowing that it was possible that I would be shown the door. Well, as predicted, I was. I would still like to buy the car, however, because I know that in short time, I will be working somewhere else, likely for more money... as I have talents that are in demand. Had GM had this Total Confidence, I would have bought... knowing that I was covered for a lapse in employment. Now I am on hold, and GM might not have what I want to buy in a few months... _IF_ GM is here is a few months.

Its said that a bird in the hand is worth two in the bush.

This same thing happened to me in 2004... when the first GTOs were languishing on dealer's lots since the 2005's were known by the public to be worth waiting for. I was offered a killer deal on the car I wanted, but couldn't pull the trigger, since I was just out of work. Months later, I was back at work, and between the cancellation of the color I wanted, the lack of a deal that was compelling, and my personal schedule, I never got a chance to buy any GTO.

[Teh Ricer Civic!]

Come to think about it, this does not really help GM or Fords bottom line.

While it may help their cash flows, they cannot really recognize any revenue since potentially all payments have contingencies.

I'm glad i don't work in their accounting department.

[hyperv6]

"I think I may lose my job, so I guess I should go buy a new Hyunda, GM or Ford!"

If you think there is a possibility that you may lose your job you shouldn't be buying a new car. When did our society get so focused on instant self-gratification?

This was my thought.

Gee honey lets go buy a new H2 now because I might lose my job in 3 months?

My thought is Hyundia sales are growing more because one they are a growing company to start with since they did not sell a lot of cars before. Second they are a cheap good value on the market where Toyota's and Honda's just keep getting more expensive. Finally Hyundia I find are often bought by people who shop monthly payments. They often don't shop overall price but how much they pay a month.

I think Ford and GM could come up with something a little better. I wish they would jump up the warrantied a little more. If they are both claiming to be so improved they shoul up the warranty on each new car coming out. Put their money where their mouth is. Or change in this case.

I know extending the warranty would add some cost and hurt extended warranty sales. But if you want people to believe in your product you need to show you believe in it first.

Besides The 2 08 GM cars I have are both trouble free since purchase. I had one TSB done but other than that the HHR and Malibu have been flawless.

[Oracle of Delphi]

Come to think about it, this does not really help GM or Fords bottom line.

While it may help their cash flows, they cannot really recognize any revenue since potentially all payments have contingencies.

I'm glad i don't work in their accounting department.

Don't really think GM can even afford to do this, especially if the economy worsens ...

[ZL-1]

so uh, where is this money coming from?

^^this