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Employee Discount Pricing-now what?

Discussion in 'Car Forum' started by Eagle78101, Aug 21, 2005.

  1. Eagle78101


    Jul 6, 2005
    From what I've heard, the employee discount program was a huge success. Cars sold well and supplies are tight. But I wonder, what's next? Are buyers going to expect other discounts? Will it create a glut of used cars?

    What do you think?
  2. RMTactical

    RMTactical CLM

    Oct 7, 2000
    Behind an AR-15
    I think the American car manufacturers are going to have to keep the super low prices, at least in the long run. It did help them move some cars, but if they want to continue moving vehicles, they will have to keep up with the incentives, whatever they may be.

  3. epsylum

    epsylum Boolit Hoze

    Sep 4, 2004
    Racing Capital, USA
    GM is already touting that their new (06 models) are cheaper than before. So far you are correct. I beleive thhey have no other choice. They had to almost give the 05's away, so obviosuly they are charging more than the demand is allowing. Only way to fix it is to lower prices permanantly to match demand.

    Now there may be an unintentional effect with this "employee discount" junk. Ok now everybody who wanted a new car (and even some who didn't) got one becasue of the discount. So who is going to buy the 06's? Hmmmm Newtons law is in effect here. You know, equal and opposite reaction.
  4. geminicricket

    geminicricket NRA Life member

    Apr 26, 2001
    Lewisville, TX USA
    I play an automobile industry expert on the internet.

    The employee pricing discounts will end with the sale of the last 2005 model. Customers will remember, and hold off buying anything to replace their 2003 and earlier cars. Employee pricing will return in MARCH of 2006, only on 2006 models, and customers will sop up the supply. One new development will be the trend of customers to refuse to purchase extended warranties. GM and Ford will fret and worry about lagging profitability. This cycle will repeat, but the employee discounts will not begin before February. In 2008, the purchasers of 2005 models will return as happy repeat customers, and afterward the employee pricing level will inflate sufficiently to enable GM and Ford to actually make a profit from automobile operations.

    DC will continue to gain market share as the D side of the business recovers it's footing in the premium luxury market while the C side continues to make beaucoup bucks with products successfully following on in the trend established by the 300C and the Charger.

    By 2016, Toyota will own everything and we'll all be driving Corollas.
  5. MiCPL


    Nov 9, 2004

    The big three losses money with every car they offer at these prices. Being a GM employee I know that GMAC was the one losing money after the huge rebates offered after 9/11. GMAC I think has alot to do with GM offering everyone the employee discount. They dont want to be the one suffering another loss, the interest rates have not changed that GMAC offers. Only the cost per vechiel. Eventually GMAC will become a complete seperate company from GM. Just my .02

    And your right Toyota will rule by 2016.
  6. epsylum

    epsylum Boolit Hoze

    Sep 4, 2004
    Racing Capital, USA
    Upgrade me to at least a Camry (a lexus would be sweet though) and I hope your right.