Employee Pricing

Kridifur` said:

From a corporate point of view it's great. Their sales went up 41% for the month of June, compared to 1% for DCX. Offering the discount is not money out of the manufacturers pocket, since the price at "cost" hasn't changed. So the manufacturer has lost nothing, of course the franchise dealer doesn't make as much as he would like per single vehicle. But that's exactly why these programs are at "participating dealers only". So if they are that hell-bent on a profit per unit, they don't have to partake in it.
Lower prices equals more traffic, more sales, and more total profit.

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This is incorrect. GM corporate reinbursts the dealership for each car sold under the employee program. GM is doing a great job with the media on this campaign, as it hasn't helped their overall issue....The cars they build are overpriced and boring. When the employee price brings those GM vehicles down into a competitive range with other cars in the segment, GM is able to sell some cars(plus, the advertising is catching anyone who doesn't know much about buying cars). The reality of situation will be when a research group reports how much this program cut into GM's profits per car, however, if you can't sell the cars and need a discount to sell them, another arguement can be made. Either way, GM still has a poor lineup of vehicles when compared to other makes and this program is only a temporary fix for the serious problems. DCX also has several models that fit into this scenerio. I am disappointed to see the program offered on Hemi vehicles, though.

Todd