ramlovingvet

Wednesday, July 06, 2005

STORIES
•Ford Matches GM's Steep Discounts•GM Extends Successful Discount Program•Ford Cuts Earnings Outlook, Cites Lagging Sales •Ford Enrolls Workers, Retirees for Sales Push•Ford Offers New Incentives as Price War Escalates •Ford U.S. Sales Drop for 12th Straight Month •Deep Discounts Give GM Sales a Boost •GM to Cut 25,000 Jobs, Close Plants•Fitch Cuts GM Credit Rating to Junk•GM Posts $1.10B Loss — Worst Since 1992
DETROIT — Following in the footsteps of General Motors Corp. and Ford Motor Co., the Chrysler arm of DaimlerChrysler (DCX), said Wednesday that it too will now offer employee discounts to the general public in a move that is likely to affect all three automakers' earnings.

General Motors Corp. (GM) has been selling anybody a 2005 model car or truck at the same low prices GM employees pay since last month.

The world's largest automaker extended the employee discount program through Aug. 1 on Tuesday, prompting Ford (F) to say it was matching the consumer incentives program that delivered blockbuster sales for GM in June.

Chrysler said its program, which began Wednesday and lasts through Aug. 1, would shave thousands of dollars off the sticker prices of most 2005 models.

Dubbed "Employee Pricing Plus," the discount program does not include the hot-selling Chrysler 300 sedan, the Dodge Magnum wagon or the all-new Dodge Charger, a Chrysler spokesman said.

He said the Dodge Viper sports car and vehicles from Chrysler's SRT performance line were also excluded from the discount program.

GM's "Employee Discount for Everyone" program was launched last month and the company extended it through Aug. 1 earlier Tuesday. It drove GM's sales up 41 percent in June, which was the company's best sales month in 19 years.

Ford's program is called the "Ford Family Plan" and will shave thousands of dollars off the sticker prices of most 2005 model vehicles, company spokesman David Reuter said.

The program will run through Aug. 1, he said. Like the GM plan, Ford will sell its vehicles to anybody at the same low prices Ford employees pay.

"It's a great deal that we're going to deliver in a simple, consistent way to customers," Reuter said. "We're going to advertise this widely, in a huge significant way throughout the month."

Ford, which has seen its U.S. sales fall for 13 consecutive months, can ill afford not to remain competitive with GM. It has already warned that its core automotive operations may not be profitable this year.

Hoss

They say they're offering employee pricing....but I've been asking Bonham Chrysler for a price on a new truck (just to see if it's worth looking at) and all they do is beat around the bush and tell me to come out and visit them.

On that note...I'm giving serious thought to buying a 2002 2500, long bed, auto, 4x4, extended cab CTD from a buddy of mine. It is in superb condition with low mileage...and he babies that truck like it's his little sister. He only wants $20k for it. Anyone wanna buy my truck??

gunracer1

i have e mailed bonham, greenville,randolf and stop by a few others, no one can beat the chevy prices i have been getting.

Mexstan

Interesting story that I have just read;

http://www.cbsnews.com/stories/2005/...8B7CV7G0.shtml

I wonder if these discounts are going to affect future used vehicle sales? Will they cause the price of all used vehicles to drop at all? If so by how much? Or will used vehicle values hold up? If these current discounts are maintained for a long period of time, like many months or even years, what is going to happen long term to the automotiver market, both new and used? By the automotive market, I mean both sales, service and parts.
Don't forget to factor in that the Chinese are gearing up to flood the American market with good quality cheap vehicles in the $10,000 to 15,000 range..

P.J

The used car market crash has been covered here over the past two weeks. It should be very discouraging to some owners. What is going to happen (IMO) is that we will see the same thing happen that is about to happen in Real Estate.
Every man, woman and child that quialified for financing has a new house or a "move up" house now. In the next year or so Repo's will be at all time highs, every other neighbor that couldn't pass up the "savings" that the big three were offering. Should be a good market fo the repo man, anyway! I seem to be one of the few that are weary of this "Employee Pricing" pitch. The local dealers TV commercials are really offensive, about 5 of them in the Baltimore/Washinton area are running spots acting as if THEY are the only ones offer the Employee thing.
The Chineese cars? Bring Em on. I heard they are prepared to offer superior customer service and super warranties. (Something that the US auto makers have stumbled on in the past).

herb

I cannot believe that these automaker promotion departments are not intelligent enough to realize that they could more effectivly boost there sales share by offering quality service instead of cutting prices.
the reason they are losing market share is because of the service offered by honda --toyota ect. Free loaners, quality repair work and warrenties they back up instead of trying to wiggle out of .
ie: Chrysler states "all of our service dept are independent centers" we are not responsable for their work.
Repair your front end parts under warrenty? sure, but you will have to pay for a front end alignment.
Comon tundra, lets get your 3.4 ton diesel into the maketplace and finish these Fords, chevys and Dodges out of the game (imagine there sales with a Cummins option !)