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GM Extends Discounts; Ford Hops on Board

5 July 2005

GM has decided to continue to run its “GM Employee Discount for Everyone” marketing program through Aug. 1, 2005.

First applied in June, the program fueled the best sales month for GM in almost 20 years, propelling growth in all segments, but especially in trucks and SUVs. (Earlier post.)

As with the June program, the July offer gives consumers an opportunity to pay the price a GM employee pays for a 2005 model year vehicle, including available rebates, but excluding taxes, title and dealer fees.

Faced with its own sales problems, Ford decided to follow suit, announcing on Tuesday that it would sell most 2005 models at or below the employee and retiree discount price less bonus customer cash incentives. Excluded from the plan are Ford trucks larger than F-350 and E-350, the Ford Mustang, Ford GT and Ford Escape Hybrid.

Analysts expect Chrysler to announce a similar program tomorrow.

If buyers repond in July comparably to June and swing toward the light-duty trucks and SUVs that earlier in the year were down 25% year-on-year(earlier post), the composition of the national fleet will have received a big push in the wrong direction.

July 5, 2005 in Fuel Efficiency, Sales | Permalink | Comments (1) | TrackBack (0)

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Comments

^ I don't know about a "big push", but a push nonetheless. It's frustrating that they didn't include the discount on the hybrid -- both frustrating, and a little suprising. I would imagine that Ford is trying to get into the hybrid game, and especially in front of GM. Why not sell more of their Escape hybrids, to (a) take the heat off of SUVs, and (b) gain some marketshare as an American hybrid producer? It just seems like such a home run for them to push sales of the hybrid...

ugh.

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