GM to Change Discount Policy for Employees

[cjforumadmin]

http://www.bangshift.com/blog/GM-to-Change-Discount-Policy-for-Employees.html

[Thackdaddy]

Re: GM to Change Discount Policy for Employees

GM needs to be profitable and they cannot afford to sell cars at low to no margin to anyone, even their own employees. It is ironic that by getting the deep discounts, employees were actually working against themselves with respect to job security and the health of the parent company. Paying more now means that GM may actually clear a few bucks on each employee sale. A wild concept, we know.

Actually that is very wrong, if you look at profits at GM, Ford and Chrysler compared to the number of people employed, as employee numbers fall so do profits. Those employees bought vehicles often to the benefit of the company...trust me GM made money, the exact same amount as a sell to non-employees, this move is only in response to the dealers because they did not make money selling GM cars to GM employees and their families.

To be clear, it will cost GM more money to sell a car now....how? Go to your dealer today and look at a new car or truck with discount, that is a factory incentive, buy the car and GM pays the dealer the difference, sell to an employee it's just complete the transaction. Now employees will wait for incentives like everyone else or...much more likely buy from Ford or Toyota.

GM now pays dealers for selling cars to their employees...that IS NOT clear thinking!

Car dealers say since the new plan won't be a set discount, people looking to buy a new car should stay alert.

"Watch their local news or contact a local dealership because it will change," Simms said. "It will be similar to a rebate program."

Hmm, maybe GM is just letting some of the dealers (not the smartest bunch) shoot themselves in the foot....er head!

[Freiburger]

Re: GM to Change Discount Policy for Employees

About 6-8 months ago, some journalists were offered employee pricing.