General Motors’ retail share is up almost eight points since May, just 12 days after it extended its employee discount to the general public. The incentive is helping the struggling automaker regain retail share of the new vehicle industry, according to data from more than 6,000 automotive franchises.
The GM Employee Discount for Everyone sales incentive program, which began June 1, allows consumers to purchase new vehicles at the same discount GM gives its employees.
GM’s share of the new-vehicle industry through June 12 hit 30.3%, up 9% from April 2005 and 7% from June 2004. The last time GM’s single-month retail market share exceeded 30% for a full month was September 2004, when the company sold 31.5% of all new vehicles, according to J. D. Power and Associates’ Power Information Network.
“The latest incentive program is substantially moving the needle for them,” said Tom Libby, senior director of industry analysis at the Power Information Network. “At this point it looks like this may be their most effective incentive program, in terms of market share gain, since the post-9/11 zero-percent financing program.”
Through July 5, consumers can find discount prices displayed on eligible GM vehicles in the promotion that also take into account available rebates, but exclude taxes, title and dealer fees. Consumers can also confirm the price of a specific vehicle by entering the vehicle’s VIN number at GMbuypower.com, or use the site to search for discounts by location.
The program includes all 2005 GM cars and trucks, except for Chevrolet Corvette and GMC medium-duty trucks, and is compatible with most other incentives currently available. Broadcast, print, in-store and online media that feature GM employees support.
GM is the only automaker whose retail market share is up through the first 12 days of June. Chrysler Group’s retail market share is down about 2% from May, while Ford Motor Co. and Toyota Motor Co. are both down about 1%, the report said.
The GM program has prompted fellow Big Three automakers Ford and Chrysler to scramble to slow GM’s momentum. For example, Chrysler has retooled its June incentive program to include a “Straight Math, Great Product” ad and online campaign to educate consumers about Chrysler’s specials. Product Web sites also include headings like “Great Deals. No Employee Discount Needed.”
Ford, which is running its own summer cross-promotion with The Home Depot (PROMO P&I, June 7), is also airing TV ads claiming its current incentives still make its vehicles less expensive than GM’s.
According to the Associated Press, Ford also launched an incentive campaign offering employees and retirees up to a $1,000 cash bonus for new car sales referrals. It is the first time Ford has ever offered a sales spiff for employees who do not work in sales. AP also reported that Ford VP Steve Lyons wrote in a company memo that one referral from every employee and retiree would result in 300,000 unit sales and an additional two points of market share.
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