What do you do when you’re GM and you lost $15.5 billion last quarter, you are burning through cash at a rate of $1 billion a month, your auto sales keep plunging, and you can’t move those trucks off the lot? Slash prices.
GM is once again, after a 2-year respite, offering employee pricing on almost all the Chevrolet cars and trucks in its showrooms. Employee discounts are usually 10% below the invoice price but vary by model.
Jesse Toprak, an analyst who tracks incentives for automotive Web site Edmunds, gives the Reader’s Digest version, “Desperate times call for desperate measures, and that’s what we’re seeing from GM.”
While GM obviously needs to clear out its 2008 inventory, this pricing plan looks like another “kitchen-sink” attempt to keep its coveted “global sales leader” title. The company is currently on track to lag behind Toyota this year in total auto sales. It would be the first time in 77 years GM was not #1. Another feather in CEO Rick Wagoner’s cap.
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