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Incentives...?

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Well if you thought September was bad... October is only getting worse... Sales are never gonna see 2004's totals... What kind of incentives would it take to get customers to flock in... 0% intrest? 10 year warrantys? 5-10k$ off of every vehcile? what will it take to get some vehicles off the dealership... the customers are used to it... they will expect nothing less... so why stop incentivies? if GM offered a 10 year bumper to bumper & 10 year powertrain... wouldnt that set the bar and let people know GM is a serious contender? no incentives would be needed... then GM would know exactly what problems their products face so they could fix them... that would truley be Americas Best Warranty
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I've got a great idea for a new incentive: Try offering no-nonsense truly-competitive vehicles instead of lukewarm (minivans) rehashes! IMO, GM's biggest problem is that they cannot take the leap of faith that says: offer your best to the industry and the customers will come - and you'll eventually make a profit off of it. Current losses can be considered the "price-of-admission" to regain credibility as a non-budget-car manufacturer. Look no further than the 3-valve pushrods (or the pushrods themselves or 6speed transmissions). Take a look at Toyota's hybrid Synergy system. No question that Toyota initially lost money on each unit sold.. but look at the publicity/good will it generated. GM needs to take a similar approach. Put your best interiors, powertrains, etc. forth and show the public what you've got - show the public how competitive you can be. Or you could just consider taking a half-hearted approach that the public will easily see through, that reviewers will bash. You can continue your discount-of-the-month program, your low resale values, and your ever-slowly-declining automotive sales.
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I've got a great idea for a new incentive:

Try offering no-nonsense truly-competitive vehicles instead of lukewarm (minivans) rehashes!

IMO, GM's biggest problem is that they cannot take the leap of faith that says:  offer your best to the industry and the customers will come - and you'll eventually make a profit off of it.  Current losses can be considered the "price-of-admission" to regain credibility as a non-budget-car manufacturer.  Look no further than the 3-valve pushrods (or the pushrods themselves or 6speed transmissions).  Take a look at Toyota's hybrid Synergy system.  No question that Toyota initially lost money on each unit sold.. but look at the publicity/good will it generated.  GM needs to take a similar approach.  Put your best interiors, powertrains, etc. forth and show the public what you've got - show the public how competitive you can be.  Or you could just consider taking a half-hearted approach that the public will easily see through, that reviewers will bash.  You can continue your discount-of-the-month program, your low resale values, and your ever-slowly-declining automotive sales.

[post="27636"]<{POST_SNAPBACK}>[/post]


No, I think incentives are better.
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A 10 or even 7 year warranty would be good. As far as incentives go, though, I like what GM is doing now with lowering the sticker prices of their cars by several thousand, rather than relying on incentives.
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Quality of the product is important, but making the customer feel good is important as well. It's like if you have a slight (and I mean slight) high MSRP, then bolt on a discount, the customer will feel that they got a good deal.
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A 10 or even 7 year warranty would be good. As far as incentives go, though, I like what GM is doing now with lowering the sticker prices of their cars by several thousand, rather than relying on incentives.

[post="27669"]<{POST_SNAPBACK}>[/post]


In all seriousness, quality is most important. A 10 or 7 year warranty would be great but very costly, on the other hand, it would get MANY import buyers into the showrooms and the finance offices.
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prices on the cars are simply too damn high. the problem is, folks won't pay big stickers for domestic cars and far too many idiots drop huge coin for the imports. that alone necessitates rebates off too high MSRP's to prop up negative equities and still be under a mythical loan value. I like what Mitsubishi has for warranty 5/60 BTB and 10/100 PTRN. Even if you hate their cars, the warranty is great. Thing is, their cars don't need the big warranties because they hold up quite well. I know Hyundai and Kia have what are seemingly good warranties on the surface, but I'm not sure if they really are any good beyond the asterisk. I still would be leery of a Korean car, even with their warranties. Yes, rebates, cheap interest, reasonable msrp's, high lease residuals, warranties, we want it all. Free maintenance items or cost efficient scheduled maintenance plans like Saturns will be huge in the future. I envision a day where if you want to lease, you will roll your lease payment, entertainment and safety subscriptions, and maintenance all into one bill like Saturn can, for worry free, hassle free, customer friendly driving. Folks want less hassle and easier to comprehend pricing structures. Simply put, the cost of cars is oputpacing most average folks' ability to earn enough to pay for them. The upper middle and upper classes seem to get over the hump enough to buy 2-3 luxury vehicles (i.e. no domestics) in their household and they are the ones being so picky and causing the classlike stratification in the market. These are the folks all the car mags write to appeal to. Not the average low to middle class folks. Edited by regfootball
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In all seriousness, quality is most important. A 10 or 7 year warranty would be great but very costly, on the other hand, it would get MANY import buyers into the showrooms and the finance offices.

[post="27693"]<{POST_SNAPBACK}>[/post]



Believe it or not the cost may not be that big of an issue. If the warranty is not transferable and limited to the original owner the associate cost could be in real terms on average 5 years. It is a gimmick that may have some merit.
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if GM offered a 10 year bumper to bumper & 10 year powertrain... wouldnt that set the bar and let people know GM is a serious contender? no incentives would be needed... then GM would know exactly what problems their products face so they could fix them... that would truley be Americas Best Warranty


I've thought GM should do this for years... Then the quality MYTH would die (But I'm sure the press would come up with other excuses not to buy, and make GM look bad; like dealership experiences)
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I've thought GM should do this for years... Then the quality MYTH would die (But I'm sure the press would come up with other excuses not to buy, and make GM look bad; like dealership experiences)

[post="27704"]<{POST_SNAPBACK}>[/post]


Bucik going to a 4/50 warranty is a HUGE step in the right direction. Saturn, GMC, and Pontiac at a minimum need to go that way too.
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How about taking it a step further: maintenance-free for the first x years/xx,xxx miles? You give somebody a no-haggle (Saturn-like) buying experience & promise them that, barring abuse, the car is covered (free) until the x years/xx,xxx miles are complete. You are basically targeting the non-car enthusiasts. My mother is wholly car uneducated. Doesn't know a thing about cars & doesn't care to ever learn. She'd snap at the ability to buy a car, haggle-free, and no their are no surprises down the road -- just reliable transportation for a fixed monthly cost. A no-haggle, no-surprise, problem-free guarantee for a small-premium up-front! As a side bonus, the covered vehicles would be virtually guaranteed to hit all of their maintenance schedules -- and as a result, you'd have fewer problems and higher resale values. All of which would go a long way towards improving GM's image. I'm not saying GM should do this with their entire line, but I think something like this could be considered for at least one of GM's brands (Saturn).
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Didn't VW pay for like a years insurance for people who bought certain vehicles? I'd like to see that from GM, one less bill for me.
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A 10 or 7 year warranty would be great but very costly...

[post="27693"]<{POST_SNAPBACK}>[/post]


How would it be very costly? If GM cars really do have such improved quality, then it should cost GM very little.
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Bucik going to a 4/50 warranty is a HUGE step in the right direction.  Saturn, GMC,  and Pontiac at a minimum need to go that way too.

[post="27706"]<{POST_SNAPBACK}>[/post]


Didn't before Olds died, it had extended warranty as well?
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Halfway through the 2001 model year, when the end of Oldsmobile was announced, GM slapped a 5 year/60K mile warranty on those vehicles to assuage potential buyers. As for incentives, I would have preferred GM to make a more serious effort into their Total Value Promise. As it is, it's somewhat of a joke and is sure to disappoint. What they are offering is not enough to wean from big rebates.
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I wish GM would have come in with an even more low-ball starting price on the Buick Lucerne, deliberately less than the comparable Lexus or whatever. (Though they can't get too close to LaCrosse pricing.) I also wish they would have taken the warranty even farther than 4 yrs/50K mi. But, since neither happened, how about if the advertising for the Lucerne stresses quality and quietness and certain features?
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Didn't VW pay for like a years insurance for people who bought certain vehicles?


*nods*

Yes, yes they did.

For me ... insurance premiums paid ... a longer warrantee period (say at least 5 years, preferably 10) ... free oil changes/maintenance for a year or so ... all would find me in a Chevrolet dealer purchasing an impala or a Colorado....pronto.


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