Personal Finance: Smooth ride for GM discount
General Motors' latest program to reclaim market share, which it has been ceding to the Japanese for more than a decade (and more recently to a resurgent Chrysler), is humming like a '57 Chevy. That's good news for GM but even better news for consumers, including those who would rather get behind the wheel of a Ford or a Chrysler than a Pontiac or a Buick.
In an attempt to thin out its bulging inventory and prop up its share of the U.S. market—which recently hit a modern-era low of 25 percent—the world's largest carmaker (for now) began in June offering to all consumers the same discount previously offered only to GM employees.
The results have been dramatic, with GM's share of the American market the first two weeks of June jumping a full 8 points from May, according to J.D. Power and Associates. If that's not proof enough, consider that Ford just responded with an incentive program that rewards employees with $1,000 in cash for getting friends and relatives to buy cars and that Chrysler has begun a major advertising campaign promoting its own competitive prices. "The fact that Ford and Chrysler have come out with these robust programs is a sign that the GM program is working," says Tom Libby, senior director of industry analysis at J.D. Power.
So, is it a good time to buy a car? "No question," says Libby. But it won't last long. The GM discount is good until July 5. After that, prices throughout the industry may return to previous levels. A few examples of GM discounts are below; all of the discounts can be found at www.gmbuypower.com.
| Model discount | Suggested retail price | After discount |
| Chevy Cobalt Sedan (base) | $14,190 | $12,470 |
| Buick LaCrosse CX | $23,495 | $19,944 |
| GMC Sierra 1500 | $31,845 | $24,166 |
| Saab 9-3 Aero convertible | $43,320 | $37,893 |
| Chevy Tahoe SUV 4x4 LT | $45,815 | $36,934 |