Employee Discount Program News: Extended to Sept. 30

[Vintalage]

Automotive News / July 18, 2005

DETROIT -- Dealers in June shouldered most of the incentive load of General Motors' employee pricing program, Edmunds.com says.

The information service says the discount from GM's average sticker price increased $952, from $6,455 in May to $7,407 in June. But the cost to GM increased only $136 based on the average transaction price of vehicles sold. Dealers picked up the $816 difference.

- Automotive News

[Vintalage]

DETROIT -- Last month, Pontiac missed the party.

During General Motors' blowout summer sale, seven GM brands enjoyed sales increases, ranging from Buick's 36.4 percent to Hummer's incredible 210.5 percent. Pontiac sales fell 14.1 percent.

Company officials blame the decline on a decision to cut fleet sales. But disappointed dealers blame Pontiac's vague brand image, a car-heavy lineup and me-too vehicles that resemble other GM products.

"The product is too much like what GM already has," says an Ohio dealer who asked to not be identified. "It's still a good-quality product; it's just not as exciting as it used to be."

Pontiac also depends heavily on car sales, with division partner GMC getting most of the trucks. Trucks were big sellers in June, but Pontiac could not take advantage.

Pontiac has struggled all year.

In a low point for Pontiac, GM Vice Chairman Robert Lutz implied that it was a "damaged brand" in comments to analysts at the New York auto show in March.

Through June, total Pontiac sales are down 17 percent compared with the first six months of last year.

3-prong strategy

John Larson, general manager of Buick, Pontiac and GMC, says there are three key elements in the plan to rebuild Pontiac's image and its sales. GM will:

1. Promote its channel strategy to group Pontiac, Buick and GMC brands into single dealerships. To avoid overlapping products, GM will eliminate vehicles from the three brands.

2. Trim Pontiac's aging product lineup. Weak sellers such as the Bonneville sedan, Aztek sport wagon and Sunfire compact die after the 2005 model year.

3. Revive Pontiac's traditional performance image with the Solstice roadster, which debuts this fall. Pontiac also gets the Torrent sport wagon, which is based on the Chevrolet Equinox.

Pontiac executives say retail sales for June actually rose 17 percent compared with June 2004, Larson says. He blames lower fleet sales for last month's sales decline.

Larson says Pontiac sold 126,309 retail units through June, compared with 145,183 in the first six months of last year - a 13 percent drop. GM would not release retail and fleet breakdowns for its other brands.

'The toughest sale on earth'

Some frustrated dealers say the brand needs better marketing.

"Pontiac right now is the toughest sale on earth," says a Florida dealer who asked not be identified.

"We can't even get anyone to consider a Pontiac. If you get them to drive a G6, they come back impressed, but I don't think we've ever had anyone come in and ask about the G6."

A Detroit-area dealer who asked to not be named says Pontiac buyers tend to prefer trendy new products. So that buyer will cross-shop Pontiac with rivals such as Mazda, Honda, Toyota and even Chevrolet, regardless of incentives.

One marketing expert questions some of Pontiac's moves. Although Pontiac gave away 276 G6s last September on Oprah Winfrey's TV talk show, the car still has poor product recognition, says Gordon Wangers, CEO of Automotive Marketing Consultants Inc. in Marina del Rey, Calif.

Many people do not know the G6 replaced the Grand Am, he adds.

"Pontiac should have retained the name Grand Am," Wangers says. "It'd be easier to recreate the image of the Grand Am than to create new name recognition for the G6."

No summer Solstice

Likewise, Pontiac placed the new Solstice roadster on the April 14 episode of "The Apprentice" reality TV show. But the car still is not in dealer showrooms, the Florida dealer says. The Solstice was scheduled to arrive in dealerships by mid-summer but was delayed because of production problems.

"There's a train of thought at GM of, 'Gosh, we need to tell them about it so they don't go look at Toyota or a Honda,' " says the dealer. "What they don't understand, because they've never stood in a showroom, … is how people feel when they come to look for a vehicle and it's not there."

Larson says sales will look brighter in the 2006 model year, when Pontiac will have its full G6 lineup.

G6 sales have been hampered because the division is only selling the sedan with a 3.5-liter V-6. This fall it will add the 2.4-liter four-cylinder coupe and sedan as entry-level models, which should boost volume. And a 3.9-liter V-6 GTP performance version also is scheduled to appear in the fall.

Pontiac plans to launch the G6 retractable hardtop in the first quarter of next year. Pontiac began building the 2006 models in April.

Says Larson: "Just getting the availability of the G6 products will help us tremendously."

http://www.autoweek.com/news.cms?newsId=102798

- Autoweek

[GregFarz78]

Trim Pontiac's aging product lineup. Weak sellers such as the Bonneville sedan, Aztek sport wagon and Sunfire compact die after the 2005 model year.

3 peices of **** that wont be missed

[mr_eh]

the sunfire is a nice car, just no one cares about the aftermarket for it...

[GregFarz78]

no need for a sunfire when the cobolt/ion is basically the same thing finally GM is killing off redundant models...a bonnieville is basically the same as a grand prix and the aztek well that thing should've never been produced in the first place

[AMRAAM4]

The focking Solstice and Torrent do not mean "performance" to any God damn person who has a clue about performance.

That should be labeled more appropriately as "Revive Pontiac's traditional performance image for those suckers who still think "performance" vehicles have less than 300hp"

[Exodus]

perhaps they mean "affordable performance"

[AMRAAM4]

Originally Posted by Exodus

perhaps they mean "affordable performance"

there is no such thing.

[jroth2000gt]

They should resurrect the Firebird and bring back the Grand am name. That wouldnt be a bad starting point. Most emphasis being on the Firebird.

[bigbenSC]

Well, they left the GTO out of the discount program, bad choice. That car brings people into the showroom who may leave with something else. 2005 G6's are getting very hard to find and the discounts aren't avalible on 2006 models, so any interest in the coupe or GTP models was shot down. Those two factors hurt a lot. No one is rushing out to buy a Sunfire or Bonnie and the GP is competing with the G6. Not that surprised that Pontiac is hurting. The Solstice needs to be out now, but when it comes along in October or so, people won't want to pluck down money on a 2 seat convertible. Stupid brand management.

[kubiache]

How about this:

Get rid of Pontiac SUVs/minivans, and make the cars appearance not suck so much.

[Vintalage]

Originally Posted by kubiache

How about this:

Get rid of Pontiac SUVs/minivans, and make the cars appearance not suck so much.

Performance and SUV can work. BMW has the X5 as well as the X3, and Audi is going to release two SUVs in the future.

I've driven the 2005 X5 4.6. It is quick and nimble. Handling is fantastic. Very little body roll.

[lironet]

I'm not sure how the employee discount works in the the U.S., but here in Canada, it has got to be the biggest marketing joke.

My friend, who is interested in leasing a 2005 GA GT went to a dealer a month before the employee discount and was quoted $370 cnd/month for everything but leather and sc/t hood. So him & I decide to head over there today and see what kind of price they are going to throw at him with the employee discount. My friend tells him what options he wants, the salesperson goes to the manager & comes back with a quote of $388 cnd/month. My friend & I look at each other and pretty much say, "what the ****?". The salesman tells my friend that the quote is higher than the previous quote because GM lowered the buy back and raised the APR from 0.75% to 2.9%. In closing, my friend says see ya and is now waiting for the employee discount to end so he can possibly lease a Cobalt SS.

According to the salesman, the employee discount for the GA was $2618 off of the MSRP price... but with the buy back being 8900 instead of 9850 & the APR being 2.9 instead of 0.75%, you save squat.

Sorry for the long a$$ story.

[02andahalfgt]

"...it's just not as exciting as it used to be."

Amen brother.

Revive Pontiac's traditional performance image with the Solstice roadster, which debuts this fall. Pontiac also gets the Torrent sport wagon, which is based on the Chevrolet Equinox.

They say they're cutting back similar cars made by multiply brands, yet they're going to give Pontiac a version of the Equinox.

[peeps]

Originally Posted by lironet

I'm not sure how the employee discount works in the the U.S., but here in Canada, it has got to be the biggest marketing joke.

My friend, who is interested in leasing a 2005 GA GT went to a dealer a month before the employee discount and was quoted $370 cnd/month for everything but leather and sc/t hood. So him & I decide to head over there today and see what kind of price they are going to throw at him with the employee discount. My friend tells him what options he wants, the salesperson goes to the manager & comes back with a quote of $388 cnd/month. My friend & I look at each other and pretty much say, "what the ****?". The salesman tells my friend that the quote is higher than the previous quote because GM lowered the buy back and raised the APR from 0.75% to 2.9%. In closing, my friend says see ya and is now waiting for the employee discount to end so he can possibly lease a Cobalt SS.

According to the salesman, the employee discount for the GA was $2618 off of the MSRP price... but with the buy back being 8900 instead of 9850 & the APR being 2.9 instead of 0.75%, you save squat.

Sorry for the long a$$ story.

It is the same with the 0% scams and huge rebates they were offering....most people just didn't notice MSRPs increased quite a bit around this time....

[kubiache]

Originally Posted by Vintalage

Performance and SUV can work. BMW has the X5 as well as the X3, and Audi is going to release two SUVs in the future.

I've driven the 2005 X5 4.6. It is quick and nimble. Handling is fantastic. Very little body roll.

Ok, but we're comparing to an Aztek.

If I crapped on my lawnmower I'd have more style and performance.

[mr_eh]

Originally Posted by AMRAAM4

there is no such thing.

srt4/wrx

[Ant]

Originally Posted by mr_eh

srt4/wrx

wrx....eh...it's fast, but for 26 grand, it's not THAT fast. a wrx is on par with the v6 accords, is it not? An srt-4, with high 13 second 1/4s is fast for 22k

If the Torrent is supposed to be a 'performance SUV' , it should have a 5.3 LS4 and not a 3.5 V6.

[Panacea]

Originally Posted by AMRAAM4

The focking Solstice and Torrent do not mean "performance" to any God damn person who has a clue about performance.

That should be labeled more appropriately as "Revive Pontiac's traditional performance image for those suckers who still think "performance" vehicles have less than 300hp"

Thank you!