GM Good or Bad Deal

GM today started their new advertisement campaign-telling consumers they can return their new vehicle within 60 days of purchase,

Although this may seem like a lucrative deal, the fine print of the disclaimer is yet to be seen, the trick could be in the details. Is this another three card Monty game or the consumer stand a chance to gain. “Follow the ball”

Here is how the program works

Starting September 14 thru November, the vehicles that are covered are the Chevrolet, Buick, GMC and Cadillac 2009 and 2010 models. In addition, you have 60 days to drive the vehicle, racking up no more than 4000 miles, and do not include lease vehicles 

Reuters reported under condition of an anonymous source that GM would cut U.S. dealers discount by a half percentage point in order to facilitate the campaign. Dealers are already beginning to cry foul, every since they got wind of the program, not all dealers are in agreement, however they all hope it is successful.

If this is such a great deal, why offer when supply is limited. Due to the lack of inventory because of the previous CARS, program that dried up dealership lots if buyers cannot get the car, they want, the quality is not to their expectation, and based on the percentage of returns negative publicity may kick up like a raging storm and hence, image may be ruined for a long time to come.

In the waters of survival, a drowning man will grasp at a straw; this is a very gutsy move by the new GM, Lutz, and the advertising crew, start counting the days.

GM, if you stand behind your product set a solid reasonable price, and says to consumers, THIS IS THE BEST QUALITY FOR YOUR MONEY GURANTEED. The consumers will be your best judge.

Good Luck in you endeavors. YOU NEED IT.

GM Making Initial Steps to Reinvent Brand, Company

GM’s Vice President of Sales and Marketing Mark LaNeve told Car & Drive in an recent interview that GM has the market research which shows that consumers have four main concerns that they want addressed before they will consider buying a new car: “the solidity of the car’s warranty, its safety, the buyer’s own ability to make new car payments, and worries that new cars lose their value quickly.”   GM feels that its current 5-year/100,000 mile warranties reassure consumers, and OnStar gives it a tremendous advantage in safety features over its competitors.

To address the last two concerns, the automaker has developed the Total Confidence program.  This program is additional reassurance to auto buys, because it take over car payments on behalf of the buyer for nine months if the buyer loses their job. “Nine months, all our studies show, is plenty of time to find a new job and resume making the payments,” LaNeve tells C&D.  Buyers worried about their new cars losing their value, can take heart as the program includes an “equity protection clause.  Under the Total Confidence program, buyers can trade in their new car on another GM vehicle, and GM will cover the difference between what a buyer owes on a vehicle and what it is worth, up to $5,000.”

It’s this kind of messaging and goodwill that American car buyers need to see coming from Detriot.  Images of automaker CEOs asking for hand outs have been burned into the American psyche.  But programs like GMs Total Confidence program offer a valuable and needed counterpoint.