Ford and Chrysler to match GM Employee Discount for Everybody Program
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Ford and Chrysler to match GM Employee Discount for Everybody Program
GM Extends Discount Program Offering Employee Price to All Buyers Until Aug. 1
DETROIT (AP) -- General Motors Corp. on Tuesday announced it was extending its discount program that allows customers to buy cars and trucks at the employee rate and helped the automaker's sales soar last month.
GM has given the same discount it provides to employees to anyone buying most new GM cars or trucks since June 1. The promotion, which was set to expire Tuesday, will remain in effect until Aug. 1.
The current promotion includes all 2005 GM vehicles except the Chevrolet Corvette, Pontiac GTO and GMC medium duty trucks.
DaimlerChrysler AG's Chrysler Group has said it will match GM's incentive starting Wednesday with an employee discount program of its own. On Friday, when monthly sales figures were released, Ford Motor Co. declined to match GM.
A message seeking comment was left Tuesday with a Ford spokesman.
In June, GM saw its sales soar 41 percent to their highest monthly total in nearly 19 years thanks to the heavily promoted discount.
GM sold 550,829 vehicles last month, up from 374,970 in June 2004. That's an increase of 41.3 percent after accounting for differences in the number of selling days, a sharp contrast from the single-digit growth the company has posted so far this year.
Almost all of the growth came from light truck sales, which jumped 69.2 percent to 375,092 vehicles. The Colorado, Equinox, Tahoe and Trailblazer models posted some of the largest sales increases.
In late-morning trading on the New York Stock Exchange, shares of GM rose 12 cents to $34.77.
http://biz.yahoo.com/ap/050705/auto_...ives.html?.v=2
__________________________________________________ _____________
Ford Matches GM, Chrysler With Employee-Discount Plan
2005-07-05 16:42 (New York)
By Bill Koenig and Jeff Green
July 5 (Bloomberg) -- Ford Motor Co. matched General Motors
Corp. in offering all buyers the same discounts to employees after
the incentives helped GM record its best sales month in 18 years
in June.
The program, called the ``Ford Family Plan,'' will begin
tomorrow and apply to 2005 Ford, Lincoln and Mercury models,
spokesman David Reuter said in an interview. Earlier today, GM
said that its plan, which sparked a 47 percent increase in June
U.S. sales, will be extended to Aug. 1. DaimlerChrysler AG's
Chrysler begins its version of GM's program tomorrow.
``GM is forcing the others to roll it out, and it just
stresses the competitive pressures that have been brought to bear
in the market,'' said Wil Stith, a portfolio manager at MTB
Investment Advisors in Baltimore, who helps manage about $2
billion in fixed-income assets including Ford and GM debt. ``The
gains could be fleeting, but it was a good ploy from GM.''
GM and Ford, the two biggest U.S. automakers, have tried
several new programs this year to reverse market share losses to
competitors such as Toyota Motor Corp. and Nissan Motor Co. Ford
has lost U.S. market share for 28 straight months, and declining
sales prompted Ford to twice lower its earnings forecast this
year, most recently on June 21. Ford's first-quarter profit fell
38 percent.
The company now expects full-year profit, excluding some one-
time costs, of $1 to $1.25 a share compared with a forecast of
$1.75 to $1.95 in January. Ford, of Dearborn, Michigan, doesn't
make forecasts for net income. On May 5, Standard & Poor's cut its
ratings on Ford debt to junk status, BB+.
Toyota, Nissan and Honda Motor Co. spokesman today said the
Japanese-based companies wouldn't match the U.S. automakers'
plans. Asian automakers' U.S. market share fell in June for the
first time since August 2004.
Mustangs Not Included
Under the Ford plan, customers will be offered reduced prices
and cash rebates. For example, the XLT version of the Ford Escape
sport-utility vehicle will have a discounted price of $23,335
compared with the normal $26,070, Reuter said. Customers will be
offered an additional $2,000 off, putting their final cost at
$21,335, he said.
Dealers are being told today of the plan's details, and
advertisements will begin tomorrow, Reuter said. The program
doesn't apply to Ford Mustang and GT cars and the hybrid gasoline-
electric Escape SUV, he said. Ford's Volvo, Jaguar, Land Rover and
Aston Martin brands also aren't covered.
GM's June employee-discount offer helped lift U.S. industry
sales for the month to an annual rate of about 17.5 million cars
and trucks, from 15.4 million in June 2004 and 16.7 million in
May, according to Autodata Corp. of Woodcliff Lake, New Jersey.
Ford's sales in June rose 0.7 percent. Its U.S. market share
fell to 17.2 percent from 19.8 percent a year earlier. In 2000,
Ford claimed 24 percent of all U.S. sales.
`Bloodshed' Inevitable
``No war transpires without bloodshed,'' said Sasha Kamper,
who helps manage $86 billion in debt at Principal Global Investors
in Des Moines, Iowa, including GM and Ford bonds. ``For those
companies competing solely on price, future margins are the likely
casualties.''
GM began offering all buyers the same discount it gives to
employees on June 1 after its U.S. sales through May fell 6.7
percent and inventories of unsold vehicles climbed while GM cut
production. Detroit-based GM had a first-quarter loss of $1.1
billion, and its U.S. market share had fallen to an 80-year low
while Toyota and other Asian rivals posted market-share records.
``It's like `Keep America Rolling' was in '01 -- let's keep
it going as long as it works,'' Argus Research analyst Kevin Tynan
in New York said in an interview. ``Keep America Rolling'' was
GM's initial offer of no-interest financing made shortly after the
Sept. 11 terrorist attacks.
Biggest Since 1986
The discount, which was to expire today, helped lift GM's
June sales to 558,092 vehicles, 47 percent above a year earlier
and the highest for any month since September 1986. GM's U.S.
market share for the month reached 33 percent, more than seven
points higher than its share through May.
``It was inevitable that the others followed,'' said Maryann
Keller, an auto analyst with Maryann Keller & Associates in
Greenwich, Connecticut. ``This was a very successful and
compelling promotion on GM's part. GM was able to garner a huge
market share in June.''
Found and Lost
GM has a history of giving up market share gained from big
incentive programs, UBS analyst Rob Hinchliffe said in a report
today. In September 1986, the automaker's incentive-fueled market
share rose to 44.6 percent, Hinchliffe said. By the end of that
year, the share had dropped back to 35 percent. GM had 1 million
fewer U.S. sales in 1987 than in 1986, he said.
The Chrysler offer also allows buyers to combine the employee
discount with other rebates, Chrysler sales chief Gary Dilts said
on a conference call July 1.
``Right now there's no move under way to do that,'' Toyota
spokesman Xavier Dominicis said in response to the employee-
pricing plans. ``We just had a price increase.''
Toyota on July 1 announced price increases on 2006 model
Camry sedans and coupes averaging $150 per vehicle, or about 0.7
percent. The price of RAV4 compact SUVs will go up by $300, or an
average of 1.5 percent, and Prius hybrids will cost an additional
$300, or 1.4 percent more, Toyota said.
``We're looking at the long-term picture and sustainable
growth,'' Dominicis said after Toyota sales rose 14.4 percent in
June. Honda, which had an 8.9 percent increase in June, also won't
match, spokesman Andy Boyd said today.
``Only GM and Nissan gained market share last month,'' said
Fred Standish, a spokesman for Nissan, whose U.S. sales rose 19
percent in June. ``We did that without breaking from our effort to
hold our incentive spending as low as possible.''
GM shares rose 12 cents to $34.77 at 4:16 p.m. in New York
Stock Exchange composite trading. They have fallen 13 percent this
year. Ford rose 9 cents to $10.40 and has dropped 29 percent this
year. Stuttgart, Germany-based DaimlerChrysler's U.S. shares fell
38 cents to $40.10.
DETROIT (AP) -- General Motors Corp. on Tuesday announced it was extending its discount program that allows customers to buy cars and trucks at the employee rate and helped the automaker's sales soar last month.
GM has given the same discount it provides to employees to anyone buying most new GM cars or trucks since June 1. The promotion, which was set to expire Tuesday, will remain in effect until Aug. 1.
The current promotion includes all 2005 GM vehicles except the Chevrolet Corvette, Pontiac GTO and GMC medium duty trucks.
DaimlerChrysler AG's Chrysler Group has said it will match GM's incentive starting Wednesday with an employee discount program of its own. On Friday, when monthly sales figures were released, Ford Motor Co. declined to match GM.
A message seeking comment was left Tuesday with a Ford spokesman.
In June, GM saw its sales soar 41 percent to their highest monthly total in nearly 19 years thanks to the heavily promoted discount.
GM sold 550,829 vehicles last month, up from 374,970 in June 2004. That's an increase of 41.3 percent after accounting for differences in the number of selling days, a sharp contrast from the single-digit growth the company has posted so far this year.
Almost all of the growth came from light truck sales, which jumped 69.2 percent to 375,092 vehicles. The Colorado, Equinox, Tahoe and Trailblazer models posted some of the largest sales increases.
In late-morning trading on the New York Stock Exchange, shares of GM rose 12 cents to $34.77.
http://biz.yahoo.com/ap/050705/auto_...ives.html?.v=2
__________________________________________________ _____________
Ford Matches GM, Chrysler With Employee-Discount Plan
2005-07-05 16:42 (New York)
By Bill Koenig and Jeff Green
July 5 (Bloomberg) -- Ford Motor Co. matched General Motors
Corp. in offering all buyers the same discounts to employees after
the incentives helped GM record its best sales month in 18 years
in June.
The program, called the ``Ford Family Plan,'' will begin
tomorrow and apply to 2005 Ford, Lincoln and Mercury models,
spokesman David Reuter said in an interview. Earlier today, GM
said that its plan, which sparked a 47 percent increase in June
U.S. sales, will be extended to Aug. 1. DaimlerChrysler AG's
Chrysler begins its version of GM's program tomorrow.
``GM is forcing the others to roll it out, and it just
stresses the competitive pressures that have been brought to bear
in the market,'' said Wil Stith, a portfolio manager at MTB
Investment Advisors in Baltimore, who helps manage about $2
billion in fixed-income assets including Ford and GM debt. ``The
gains could be fleeting, but it was a good ploy from GM.''
GM and Ford, the two biggest U.S. automakers, have tried
several new programs this year to reverse market share losses to
competitors such as Toyota Motor Corp. and Nissan Motor Co. Ford
has lost U.S. market share for 28 straight months, and declining
sales prompted Ford to twice lower its earnings forecast this
year, most recently on June 21. Ford's first-quarter profit fell
38 percent.
The company now expects full-year profit, excluding some one-
time costs, of $1 to $1.25 a share compared with a forecast of
$1.75 to $1.95 in January. Ford, of Dearborn, Michigan, doesn't
make forecasts for net income. On May 5, Standard & Poor's cut its
ratings on Ford debt to junk status, BB+.
Toyota, Nissan and Honda Motor Co. spokesman today said the
Japanese-based companies wouldn't match the U.S. automakers'
plans. Asian automakers' U.S. market share fell in June for the
first time since August 2004.
Mustangs Not Included
Under the Ford plan, customers will be offered reduced prices
and cash rebates. For example, the XLT version of the Ford Escape
sport-utility vehicle will have a discounted price of $23,335
compared with the normal $26,070, Reuter said. Customers will be
offered an additional $2,000 off, putting their final cost at
$21,335, he said.
Dealers are being told today of the plan's details, and
advertisements will begin tomorrow, Reuter said. The program
doesn't apply to Ford Mustang and GT cars and the hybrid gasoline-
electric Escape SUV, he said. Ford's Volvo, Jaguar, Land Rover and
Aston Martin brands also aren't covered.
GM's June employee-discount offer helped lift U.S. industry
sales for the month to an annual rate of about 17.5 million cars
and trucks, from 15.4 million in June 2004 and 16.7 million in
May, according to Autodata Corp. of Woodcliff Lake, New Jersey.
Ford's sales in June rose 0.7 percent. Its U.S. market share
fell to 17.2 percent from 19.8 percent a year earlier. In 2000,
Ford claimed 24 percent of all U.S. sales.
`Bloodshed' Inevitable
``No war transpires without bloodshed,'' said Sasha Kamper,
who helps manage $86 billion in debt at Principal Global Investors
in Des Moines, Iowa, including GM and Ford bonds. ``For those
companies competing solely on price, future margins are the likely
casualties.''
GM began offering all buyers the same discount it gives to
employees on June 1 after its U.S. sales through May fell 6.7
percent and inventories of unsold vehicles climbed while GM cut
production. Detroit-based GM had a first-quarter loss of $1.1
billion, and its U.S. market share had fallen to an 80-year low
while Toyota and other Asian rivals posted market-share records.
``It's like `Keep America Rolling' was in '01 -- let's keep
it going as long as it works,'' Argus Research analyst Kevin Tynan
in New York said in an interview. ``Keep America Rolling'' was
GM's initial offer of no-interest financing made shortly after the
Sept. 11 terrorist attacks.
Biggest Since 1986
The discount, which was to expire today, helped lift GM's
June sales to 558,092 vehicles, 47 percent above a year earlier
and the highest for any month since September 1986. GM's U.S.
market share for the month reached 33 percent, more than seven
points higher than its share through May.
``It was inevitable that the others followed,'' said Maryann
Keller, an auto analyst with Maryann Keller & Associates in
Greenwich, Connecticut. ``This was a very successful and
compelling promotion on GM's part. GM was able to garner a huge
market share in June.''
Found and Lost
GM has a history of giving up market share gained from big
incentive programs, UBS analyst Rob Hinchliffe said in a report
today. In September 1986, the automaker's incentive-fueled market
share rose to 44.6 percent, Hinchliffe said. By the end of that
year, the share had dropped back to 35 percent. GM had 1 million
fewer U.S. sales in 1987 than in 1986, he said.
The Chrysler offer also allows buyers to combine the employee
discount with other rebates, Chrysler sales chief Gary Dilts said
on a conference call July 1.
``Right now there's no move under way to do that,'' Toyota
spokesman Xavier Dominicis said in response to the employee-
pricing plans. ``We just had a price increase.''
Toyota on July 1 announced price increases on 2006 model
Camry sedans and coupes averaging $150 per vehicle, or about 0.7
percent. The price of RAV4 compact SUVs will go up by $300, or an
average of 1.5 percent, and Prius hybrids will cost an additional
$300, or 1.4 percent more, Toyota said.
``We're looking at the long-term picture and sustainable
growth,'' Dominicis said after Toyota sales rose 14.4 percent in
June. Honda, which had an 8.9 percent increase in June, also won't
match, spokesman Andy Boyd said today.
``Only GM and Nissan gained market share last month,'' said
Fred Standish, a spokesman for Nissan, whose U.S. sales rose 19
percent in June. ``We did that without breaking from our effort to
hold our incentive spending as low as possible.''
GM shares rose 12 cents to $34.77 at 4:16 p.m. in New York
Stock Exchange composite trading. They have fallen 13 percent this
year. Ford rose 9 cents to $10.40 and has dropped 29 percent this
year. Stuttgart, Germany-based DaimlerChrysler's U.S. shares fell
38 cents to $40.10.
Thread Starter
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Originally Posted by MajinB
discount when buying car = crappy resale value down the line. good to own a honda. 
What the discount program allows for the consumer is better cars for less money. By better, i mean usually more expensive cars than you could not have afforded before the discount program.
Last edited by cambo; Jul 6, 2005 at 01:18 PM.
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it's one of the last ditch efforts by GM to try and save their company. likely a similar situation with ford. GM is cutting jobs and money every where and losing their butt. while the cars at a discount price is good for consumers, keep in mind this cuts the profits of each car sold for the company. GM is losing money, but are trying to bolster sales by dropping prices to save the company. even though they are closing 3 more plants and cutting 25,000 more jobs.
IMO, too little too late.
IMO, too little too late.
That is not an ordinary rabbit tis the most foul cruel beast
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Rep Power: 319 can't get a GM discount on corvettes by the way.
also its not just american auto manufactures that have been hurting lately.
Mitsubishi is in the crapper as well. that company will be lucky to exsist in 10 years.
Gm sales been up 40 percent since they started this no hasle clear cut. What this actually shows is that people hate having to deal for a car!
by the way one auto maker thats still home based thats US thats doing well is good old dodge. Thanks partially to the help of the germans lol, its funny now that mercedes sales are **** they are relying on dodge to save them.
also its not just american auto manufactures that have been hurting lately.
Mitsubishi is in the crapper as well. that company will be lucky to exsist in 10 years.
Gm sales been up 40 percent since they started this no hasle clear cut. What this actually shows is that people hate having to deal for a car!
by the way one auto maker thats still home based thats US thats doing well is good old dodge. Thanks partially to the help of the germans lol, its funny now that mercedes sales are **** they are relying on dodge to save them.
Last edited by WhiteCastle; Jul 6, 2005 at 03:04 PM.
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Rep Power: 401 mercedes sales dropped once they merged/were bought out by chrysler/dodge. the merger helped chrysler and hurt mercedes. to say that mercedes is relying on dodge to save them is kinda a moot point, since the merger with dodge/chrysler is what put them there in the first place.
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Originally Posted by WhiteCastle
Gm sales been up 40 percent since they started this no hasle clear cut. What this actually shows is that people hate having to deal for a car!
That is not an ordinary rabbit tis the most foul cruel beast
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Rep Power: 319 Only way to save GM is to remove multi platform cars like the soltice and saturn sky.
Everyone has become more aware that they just are rebadged GM vechs....
Everyone has become more aware that they just are rebadged GM vechs....
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From: Milwaukee, Wisconsin, US
Rep Power: 401 that and they need to do something about all of the money they are spending on benefits packages. while it's nice to take care of your employees, if it puts you out of business in the long run, then you won't be there to continue to provide for former employees anyways.
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Rep Power: 321 I don't know if you guys know but GM is actually selling some cars at a higher price with the EPP than it was before with rebates.
Last edited by EManEX; Jul 6, 2005 at 05:50 PM.
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Originally Posted by EManEX
I don't know if you guys know but GM is actually selling some cars at a higher prince with the EPP than it was before with rebates.
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Rep Power: 337 not all people who buy a car want to keep it forever. who wants to keep a cobalt or a grand prix or g6 forever? i kept a buick till it died but i got it at 180k and sold it at 250k. so yeah i guess if you wanted to keep the same thing for a good 10-15 years go with gm.i think they are liquidating all their crap and will call quits after selling the most they can. i love some cars of gm but not others. the biggest prob IS rebadging. a cavilier is a damn sunfire. same crap. grand prixs are luminas. the cutlass was a malibu. if they cut out the crap if would help alot. they spread the butter too thin.
Last time I had this much fun some furniture got broken!
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Rep Power: 362 well its funny. honda, acura, toyota, and lexus arent doing this and they still sell strong. I cannot wait till gm, ford, and dodge go under!
Last time I had this much fun some furniture got broken!
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Originally Posted by cambo
and the US economy with it! 
hey im going to be a computer engineer in 3 years. I have nothing to worry about. if we go into some like near-depression there will still be pc companies needing engineers in other countries. its easier for a "computer engineer" to get a job than some "sales associate" working at a mom and pop's pc store.
Originally Posted by S2000man01
GM or ford going under would not be a good thing.
it would have its down sides. but I honestly despise american cars enough that I dont care. I would rather they disappear. Everyone I know says imports suck. They also never drive since their brand new pontiacs and fords are never out of the garage. I would love to get these people to buy 1 toyota, or honda, or acura. I know they will chance their minds.
For example. My girlfriends mom has a Vibe Gt. Repaired about 2 times a month. Dad has a ford exploder. Also about 2 times a month its in the garage.
Now they are choosing a car to replace the exploder and its either a civic or a cobalt or an aveo. Guess which one of these they said they will not pick? The civic. Why? Close minded. They don't understand how nice and reliable the car really is and won't accept the fact american cars are made like crap.
Last edited by diskreet; Jul 7, 2005 at 08:27 AM.
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Originally Posted by diskreet
i dont really care. so many other jobs have been shipped over seas that it doesnt matter much anymore.
hey im going to be a computer engineer in 3 years. I have nothing to worry about. if we go into some like near-depression there will still be pc companies needing engineers in other countries. its easier for a "computer engineer" to get a job than some "sales associate" working at a mom and pop's pc store.
it would have its down sides. but I honestly despise american cars enough that I dont care. I would rather they disappear. Everyone I know says imports suck. They also never drive since their brand new pontiacs and fords are never out of the garage. I would love to get these people to buy 1 toyota, or honda, or acura. I know they will chance their minds.
For example. My girlfriends mom has a Vibe Gt. Repaired about 2 times a month. Dad has a ford exploder. Also about 2 times a month its in the garage.
Now they are choosing a car to replace the exploder and its either a civic or a cobalt or an aveo. Guess which one of these they said they will not pick? The civic. Why? Close minded. They don't understand how nice and reliable the car really is and won't accept the fact american cars are made like crap.
hey im going to be a computer engineer in 3 years. I have nothing to worry about. if we go into some like near-depression there will still be pc companies needing engineers in other countries. its easier for a "computer engineer" to get a job than some "sales associate" working at a mom and pop's pc store.
it would have its down sides. but I honestly despise american cars enough that I dont care. I would rather they disappear. Everyone I know says imports suck. They also never drive since their brand new pontiacs and fords are never out of the garage. I would love to get these people to buy 1 toyota, or honda, or acura. I know they will chance their minds.
For example. My girlfriends mom has a Vibe Gt. Repaired about 2 times a month. Dad has a ford exploder. Also about 2 times a month its in the garage.
Now they are choosing a car to replace the exploder and its either a civic or a cobalt or an aveo. Guess which one of these they said they will not pick? The civic. Why? Close minded. They don't understand how nice and reliable the car really is and won't accept the fact american cars are made like crap.
When the US economy takes a hit, the WORLD economy takes a hit. The Us economy doing poorily affects everyone.
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Originally Posted by WhiteCastle
can't get a GM discount on corvettes by the way.
also its not just american auto manufactures that have been hurting lately.
Mitsubishi is in the crapper as well. that company will be lucky to exsist in 10 years.
Gm sales been up 40 percent since they started this no hasle clear cut. What this actually shows is that people hate having to deal for a car!
by the way one auto maker thats still home based thats US thats doing well is good old dodge. Thanks partially to the help of the germans lol, its funny now that mercedes sales are **** they are relying on dodge to save them.
also its not just american auto manufactures that have been hurting lately.
Mitsubishi is in the crapper as well. that company will be lucky to exsist in 10 years.
Gm sales been up 40 percent since they started this no hasle clear cut. What this actually shows is that people hate having to deal for a car!
by the way one auto maker thats still home based thats US thats doing well is good old dodge. Thanks partially to the help of the germans lol, its funny now that mercedes sales are **** they are relying on dodge to save them.
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Originally Posted by diskreet
For example. My girlfriends mom has a Vibe Gt. Repaired about 2 times a month. Dad has a ford exploder. Also about 2 times a month its in the garage.
Now they are choosing a car to replace the exploder and its either a civic or a cobalt or an aveo. Guess which one of these they said they will not pick? The civic. Why? Close minded. They don't understand how nice and reliable the car really is and won't accept the fact american cars are made like crap.
Now they are choosing a car to replace the exploder and its either a civic or a cobalt or an aveo. Guess which one of these they said they will not pick? The civic. Why? Close minded. They don't understand how nice and reliable the car really is and won't accept the fact american cars are made like crap.
Nothing works better than a Chris except a Honda.
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Originally Posted by WhiteCastle
We may make shitty every day cars, but our sports cars and our weapons own everyone 
We should hire our sportscar makers and weapons makers to do regular cars... American's would be classier than Europeans!
...Hmm... Think about it... instead of James Bond driving an Aston Martin, we'll have someone driving a Corvette with all the cool features and weapons...
too bad that won't happen. 
My rectum hurts........
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Originally Posted by CivicsRdBest
Amen!
We should hire our sportscar makers and weapons makers to do regular cars... American's would be classier than Europeans!
...Hmm... Think about it... instead of James Bond driving an Aston Martin, we'll have someone driving a Corvette with all the cool features and weapons...
too bad that won't happen.
We should hire our sportscar makers and weapons makers to do regular cars... American's would be classier than Europeans!
...Hmm... Think about it... instead of James Bond driving an Aston Martin, we'll have someone driving a Corvette with all the cool features and weapons...
too bad that won't happen.
