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GM to subsidize gas purchases

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  #11  
Old 05-24-2006, 08:42 AM
foo monkey's Avatar
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Default Re: GM to subsidize gas purchases

Originally Posted by phoebeisis
It is probably a smart move, sales wise, in those two states.It is only $1000/car, much less than the $2500 Toyota currently rebates on the Tundra in CA for example.
I agree. It's a new sales tactic, which addresses customers' current concerns. They could have just chopped $1000 off the price of the car, but that's not what people are complaining about. They're complaining about high gas prices. Nobody complains about paying $60K for a Hummer. They complain about paying $100 to fill it up.

Still messed up, though.
 
  #12  
Old 05-24-2006, 09:17 AM
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Talking Re: GM to subsidize gas purchases

Originally Posted by Chilly
http://biz.yahoo.com/rb/060523/autos...%3D1&quicken=2

Now there's a business concept.

Hey we can't compete with Toyota, Ford, and Honda by making our cars more effecient, so let's just help our customers buy gas for these things.

You just got to love the way Detroit thinks sometimes.
HA HA HA HA HA HA HA HA HA!!!

Stop it, my sides are aching and my wife is using me to clean the floors I'm rolling on!!!


Bob Wilson
 
  #13  
Old 05-24-2006, 09:39 AM
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Default Re: GM to subsidize gas purchases

Wow. I'm just shaking my head in disbelief.

So, when somebody buys a GM they can say "that's great, I'm saving $1000 per year."

But so am I. And I'm not polluting the air we breathe as much as they, nor requiring as many resources from the middle east. (Smug!)

The sad thing is, so many American consumers don't think beyond how it feels in to the wallet in the short-term.

So, how long is GM planning to do this for people who buy these cars with this incentive? Forever? For a few years? If gas prices go up too much, GM will be hurting even more...

Siiiggghhhh......
 
  #14  
Old 05-24-2006, 10:43 AM
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Default Re: GM to subsidize gas purchases

GM has really lost it. They've been reduced to simple bribery in order to sell a few hulking, useless, unreliable SUVs.

You don't need hybrid technology to get good gas mileage, you just need to know how to build an efficient engine and an efficient transmission. This is clearly something GM doesn't know how to do and isn't interested in learning.
 
  #15  
Old 05-24-2006, 10:50 AM
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Default Re: GM to subsidize gas purchases

Originally Posted by Adelwyn
So, when somebody buys a GM they can say "that's great, I'm saving $1000 per year."
The way I read it, it's not a "per year" savings, it is just the first year. Actually until the end of 2007.

Another sad part of the article is:

GM's average incentive spending had averaged $3,050 per vehicle through April, below the level of spending by Ford Motor Co. (NYSE:F - News) and Chrysler Group, according to Autodata Corp.
All these incentives should be illegal, a lot of North American corporations are now giving decision makers kick backs for buying their product. It is becoming the norm and it encourages people to make decisions based on the size of the bribe they are receiving not the actual product. It is inmoral and should be illegal, and is now spreading from the corporate B2B world to the consumer market.

When you buy a used GM, Ford or Chrysler vehicle keep in mind that a good 10% of the original price was used to cover the kick-back given to the original owner. This 10% doesn't add any features or value to the used car. Add to that the marketing, employee benefits, taxes, pensions, union fees, high american salaries, etc... what is the value left to go in the car ?
 
  #16  
Old 05-24-2006, 10:53 AM
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Default Re: GM to subsidize gas purchases

Oh, get this: GM gives the new buyers a pre-paid MasterCard, and monitors their fuel consumption with OnStar. The more gas you use, the larger your credit!!! - i.e. an incentive to waste gas.

If GM has a forum for this, I bet it's called DirtyMPG.com
 
  #17  
Old 05-24-2006, 10:59 AM
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Angry Re: GM to subsidize gas purchases

Originally Posted by Delta Flyer
Oh, get this: GM gives the new buyers a pre-paid MasterCard, and monitors their fuel consumption with OnStar. The more gas you use, the larger your credit!!! - i.e. an incentive to waste gas.

If GM has a forum for this, I bet it's called DirtyMPG.com
Stop it ! I've just had lunch and this is making me sick

This is how "activists" are born

It is a "Lose-Lose" situation
 

Last edited by Katz6768; 05-24-2006 at 11:02 AM.
  #18  
Old 05-24-2006, 11:02 AM
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Default Re: GM to subsidize gas purchases

GM has now joined Ford on my list. The best part is that the average American is so stupid that they will think they're saving a huge amount of money because of this.
 
  #19  
Old 05-24-2006, 01:55 PM
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Default Re: GM to subsidize gas purchases

Originally Posted by gonavy
...I can't wait to hear martin's justification for this one. ....
Wait no longer,......Here ya go!

With the glaring exception of the H2, H3, and SRX, each of the vehicles included in the promotion in California lead their market segment in fuel economy. The H3 and SRX are both pretty much average for their competitive set. Don't take my word for it, check the EPA website. The H2 is what it is.

For grins & giggles I've snipped the part of the rather lengthy press release that defines the eligible vehicles in each state. Also, note that the Tahoe / Yukon, Monte Carlo, and Impala are available with E85 FlexFuel options (no additional cost), so this is additional incentive for people who value the idea of being able to choose their fuel type and for people who are more concerned about reducing reliance on foreign oil.

The Hummers and the SRX were most likely added to the California program because they are fairly popular in California. I've been driving an SRX V6 for the past month and a half and averaging 19.3 in primarily city driving. That's with the huge panoramic sunroof open and front windows down on sunny days.

Let's face it, from a marketing perspective this is actually a pretty smooth move. Because of the OnStar Vehicle Diagnostics program, GM is in a unique position to be able to execute such a plan. The car's OnStar computer tells GM how many miles the car has driven and GM sends the owner a check. Good use of a unique competitive advantage and a lot less costly than throwing cash on the hood. Instead of blanketing the market with rebates and incentives, this is a laser focused campaign targeting the people who are already pre-disposed to buying these vehicles because they want them, but are nervous about fuel prices.

Peace,

Martin

Okay, here's the piece from the Press Release:

To participate in the program, consumers who reside in California and Florida must purchase or lease and take delivery of an eligible vehicle between May 25 – July 5, 2006 and enroll in the OnStar Vehicle Diagnostics service. The diagnostic service is a GM exclusive service that automatically runs hundreds of diagnostic checks on key vehicle operating systems and then sends a monthly e-mail to subscribers about their vehicle.

Eligible vehicles in California include the 2006 and 2007 Chevrolet Tahoe and Suburban (one-half ton models only), Impala and Monte Carlo; GMC Yukon and Yukon XL (one-half ton models only); HUMMER H2 and H3; Cadillac SRX; Pontiac Grand Prix; and Buick Lucerne.

Eligible vehicles in Florida include the 2006 and 2007 Chevrolet Impala and Monte Carlo, Pontiac Grand Prix and Buick LaCrosse.

The vehicles selected for this program were chosen because of their outstanding fuel economy and great consumer appeal. The 2007 Chevrolet Tahoe leads the full-size utility segment in fuel economy and has a two-wheel-drive EPA highway estimate of 22 mpg. The Chevrolet Suburban and GMC Yukon XL have EPA highway estimates of 21 mpg.

GM’s mid-size cars also offer very competitive fuel economy with the Pontiac Grand Prix achieving an EPA estimated 30 mpg highway. That is better than a comparably equipped Honda Accord 6-cylinder (29 mpg highway). The Buick LaCrosse also has an estimated highway mileage of 30 mpg (with standard V6 engine).
 

Last edited by martinjlm; 05-24-2006 at 02:34 PM.
  #20  
Old 05-24-2006, 01:56 PM
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Default Re: GM to subsidize gas purchases

Originally Posted by lakedude
That is too messed up for words. It is offical, I hate GM.
I never doubted you.


Peace,

Martin
 


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