Ford / GM / Chrysler employee discount thread

[adam gs-r]

http://news.yahoo.com/s/ap/20050702/..._ge/auto_sales

By DEE-ANN DURBIN, AP Auto Writer
Sat Jul 2,12:35 AM ET



DETROIT - General Motors Corp.'s sales soared 41 percent in June to their highest monthly total in nearly 19 years thanks to a heavily promoted discount that allowed customers to buy cars and trucks at the employee rate, new sales figures showed Friday.

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In response, DaimlerChrysler AG's Chrysler Group said it will match GM starting July 6 with an employee discount program of its own. Despite falling sales, Ford Motor Co. declined to match GM on Friday.

Asian brands also continued their surge last month. Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. all posted their best June sales periods ever in the United States, while South Korea's Hyundai Motor Co. said June was its best single month on record.

The seasonally adjusted annual sales rate for June was 17.5 million vehicles, up from 15.4 million vehicles last June and the highest rate so far this year. The rate indicates what sales would be for the full year if they remained at the same pace for all 12 months. Full-year sales for 2004 were about 17 million.

Paul Taylor, the chief economist for the National Automobile Dealers Association, said GM's discount boosted sales across the industry.

"Similar to GM incentive pushes in the past, the enthusiasm and increased GM showroom traffic helped some other competitors as well, as consumers cross-shopped brands," Taylor said.

GM, the world's biggest automaker, said June amounted to its best month since September 1986. Paul Ballew, GM's executive director of global market and industry analysis, said the company will announce soon whether it plans to continue the far-reaching discount, which began June 1 and is scheduled to end Tuesday.

The boom was driven by record truck sales, which increased 69 percent. The Chevrolet Silverado full-size pickup led the industry as its sales more than doubled, GM said.

"We see this as an indication that America's desire for trucks and SUVs is still a strong force in the marketplace," GM vice president of marketing Mark LaNeve said.

Ballew said GM attracted roughly 150,000 new customers in June. They typically bought vehicles for an average of $400 to $500 less than they paid in May, he said.

GM sales for the first six months of the year rose 2.7 percent. Its truck sales rose 6.3 percent; car sales fell 2.3 percent.

Ford said its domestic sales fell 2.5 percent in June from a year ago and dropped 4.3 percent for the first six months of the year despite hits like the sporty Mustang and growing sales of its crossover vehicles.

The nation's second-biggest automaker said June sales of the Ford, Lincoln and Mercury brand cars rose 7.7 percent, helped by the Mustang and Ford Five Hundred sedan, but truck sales fell 7.3 percent.

Ford's top sales analyst George Pipas said Ford considered matching GM at the beginning of June but decided to stick with its sales strategy. Ford began offering $1,000 last month to employees who persuaded friends and relatives to buy a Ford. That deal runs through Sept. 30.

Pipas acknowledged GM's program as a huge success but said attracting buyers after the promotion will be more difficult.

"The interesting thing about a clear, compelling message is that it's a clear, compelling message," Pipas said. "Customers know when it's on and when it's off."

Pipas said he believes GM's discount is an attempt to clear out 2005 inventory before the fall and won't escalate into a pricing war between the automakers.

Ballew said the discount significantly cut GM's inventory. He also said the program fits well with GM's desire to get away from incentive spending and focus more on its vehicles' value.

"I don't know if there needs to be an exit strategy because this program provides a nice bridge to what we want to do in '06," Ballew said.

NADA's Taylor said GM could have problems maintaining an adequate supply of vehicles at dealerships if it continues the program into July.

Chrysler's sales were up 1.1 percent in June. The company saw an 11 percent drop in demand for its popular Chrysler 300C sedan, and a 1.5 percent decline in car sales overall. Chrysler's total sales were up 5.2 percent for the first six months of the year.

Chrysler senior vice president of sales Gary Dilts said Chrysler decided to match GM's offer because customers were attracted to its simplicity.

"It's not a bad way to go for the '05 model year," Dilts said.

Toyota reported its best-ever June on a 10 percent sales increase. Toyota's total sales are up 11.6 percent for the year on the strength of car sales, which have jumped 20.1 percent. That includes sales of the gas-electric hybrid Prius, which more than doubled over last June.

"Our fuel-efficient strategy continues to pay dividends," said Toyota Motor Sales USA president Jim Press.

Nissan and Honda also announced their best Junes ever. Nissan's sales increased 14.2 percent, and its year-to-date sales are up 15.5 percent on the strength of its trucks. Honda's sales were up 4.7 percent in June, and its truck sales shot up 20 percent in large part because of its new Ridgeline pickup. Honda's sales are up 1.5 percent for the year to date.

Hyundai said it set an all-time sales record, with truck sales up 35 percent. Hyundai's car sales were down 11.5 percent, but the company's overall sales were up 10.2 percent for the January-June period.

Sales percentages are adjusted for differences in the number of selling days. There were 26 selling days in June 2005 and 25 in June 2004.

GM shares rose 65 cents, or 1.9 percent, to close at $34.65 on the New York Stock Exchange. Ford shares gained 7 cents to $10.31 and DaimlerChrysler shares fell 3 cents to $40.48.

[mpitre44]

thats just what they needed.

I'm surprised you haven't been rebanned for the sig

[5w20]

damn i want a silverado

[91SEE-ARE-EX-Si]

ha i got my cobalt, before the employee discount thingy. Because, we do get a employee discount all the time. Losers lol j/p

[pizzaguy]

Ford bows to GM pressure; matches deals
Reuters
Jul. 5, 2005 - Ford Motor Co. <F.N>, bowing to pressure from General Motors Corp. <GM.N>, said on Tuesday that it was matching its larger, cross-town rival's employee discount program.

Under the program, which takes effect on Wednesday and will be called the "Ford Family Plan," Ford will shave thousands of dollars off the sticker prices of most 2005 model vehicles, company spokesman David Reuter said.

The program will run through Aug. 1, he said. Like the GM plan, Ford will sell its vehicles to anybody at the same low prices Ford employees pay.

"It's a great deal that we're going to deliver in a simple, consistent way to customers," Reuter said. "We're going to advertise this widely, in a huge significant way throughout the month."

The Chrysler unit of DaimlerChrysler <DCX.N> <DCXGn.DE> has said it will respond to GM's program by rolling out its own employee pricing program on Wednesday.

GM's "Employee Discount for Everyone" program was launched last month and the company extended it through Aug. 1 earlier on Tuesday. It drove GM's sales up 41 percent in June, which was the company's best sales month in 19 years.

Ford, which has seen its U.S. sales fall for 13 consecutive months, can ill afford not to remain competitive with GM. It has already warned that its core automotive operations may not be profitable this year.


Copyright 2005 Reuters News Service. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Copyright © 2005 ABC News Internet Ventures

Link:
http://abcnews.go.com/Business/wireStory?id=910492

[UrMyStlkAl]

Pretty much every dealer is doing that now anyways

[Stevenc]

damnit wheres the subaru employee pricing

[yakkolio]

yeah the japs need to jump in!

[drunkenmaster]

^^^ no they wont lol

all the american idiots are just jivin in to same jumbo.. wish they were creative and offered incentives other than just copy joe schmoe.

[AXaznAX]

I am just waiting for them to include the new Hummer H3!

[UrMyStlkAl]

^Honda is doing it as well...

[yourmom25]

really? honda's doing it? i figured sales were good enough.

[yourmom25]

but i wonder if GM lost any money on the cars they sold seeing as how they were rock bottom prices.

[UrMyStlkAl]

Pretty sure, could be wrong though. It wouldn't be the first time

[Mobil1]

Originally Posted by drunkenmaster ^^^ no they wont lol all the american idiots are just jivin in to same jumbo.. wish they were creative and offered incentives other than just copy joe schmoe.

Yeah, big discounts suck!

[pizzaguy]

Originally Posted by Mobil1 Yeah, big discounts suck!

I agree I actually ask to pay 3 grand over sticker for a car.

[2XTURBO]

time to get that Mustang, I'll bet you Mitsubishi will be starting this soon, if they don't they need to

[zerinVR6]

DEARBORN, Mich., July 5, 2005 – Ford, Lincoln and Mercury are combining their strengths and welcoming all customers to the family in July by offering their highly prized employee discount pricing to everyone through the “Ford Family Plan.”

Beginning July 6, customers in the more than 4,000 Ford, Lincoln and Mercury showrooms across the U.S. will be eligible to receive the Ford employee discounted price on 2005 model cars, trucks and SUVs.

“The unique thing about Ford is that it’s a family company, and it’s that sense of family that makes us different,” says Steve Lyons, Ford group vice president, North America Marketing, Sales and Service. “The Ford Family Plan is a great deal with a clear, compelling message that shows customers how much we value their business.”

The Plan

The plan is simple to understand. All 2005 eligible models will be sold 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.

Beginning July 6, participating dealers will receive supplemental window stickers for all 2005 models outlining the MSRP, the employee discount and applicable cash rebates.

“The big benefits to consumers are a great deal that's easy to underst and and eliminates haggling, which is a huge plus for many people,” explains Lyons .

Advertising

For the first time, Ford, Lincoln and Mercury are combining their advertising might to communicate the new Ford Family Plan through advertising in print, television, radio and Internet.

Ford will promote the plan on its Web site www.ford.com and provide Ford Family Plan pricing for all vehicles in stock for individual dealer Web sites.

Ads and dealer materials will feature the Ford Family Plan Welcome mat with the words “WELCOME Ford Family Plan” or “WELCOME Lincoln Mercury Family Plan.”

[Ex-RepoMan]

no mustang? not even the v6?

[zerinVR6]

Originally Posted by Ex-RepoMan no mustang? not even the v6?

Nope, the new Mustang is flying off the lots faster than they can build it. They've even adjusted production schedules to try and boost production output to meet demand. No need to discount a car that sells like crazy on its own