GM lets employees give their discounts to others
NEW YORK - General Motors Corp., seeking to boost sales after a 16 percent decline in 2008, will let US workers offer employee discounts to the public.
The discounts will be available through July on as many as 108,000 cars and trucks, one for each active US employee, spokeswoman Susan Garontakos said. Sales chief Mark LaNeve detailed the offer in an e-mail to workers, she said.
GM is trying to hold the line on incentives so it can increase profit from each vehicle sold while generating more demand in what may be the weakest US auto market since 1993. Employee discounts at the Detroit automaker vary by vehicle, and bring the price closer to the invoice value.
"It's a tough time for the industry," Garontakos said. "With the price of food, housing, and gasoline going up, this just gives people a bit of a break."
GM, Ford Motor Co., and Chrysler LLC have offered employee-pricing for all buyers in the past to pump up US sales. When the offers ended, sales declined.
The offer "will push buyers thinking about purchasing" into doing so, chief executive Rick Wagoner told reporters at the opening of a new research center in Pontiac, Mich.
A 20 percent decline in GM's second-quarter sales in North America dragged down the global total by 5 percent. GM fell further behind Toyota Motor Corp. for the annual worldwide sales lead, a crown the US automaker has worn for 77 years.
GM boosted average incentive spending on each US vehicle in June to $3,454, a 4.4 percent gain from May, according to Edmunds.com.
Deutsche Bank said last week that US auto sales may drop to 14 million units this year, down from a previous estimate of 14.5 million. That would be the lowest in 15 years.
