In a drastic move, the struggling automaker announced that anyone can get employee pricing discounts between June 1 and July 5. The discount applies across the entire model line with exception of the Corvette and certain GMC trucks.
This is certainly a sign of pricing weakness, building on GM’s addiction to incentives to make up for an uninspiring line up. Like Ford, GM became a bit complacent on huge SUV profits during the 90s. Now that SUV demand is weaker and competition more fierce, Detroit has to figure out how to make money on every vehicle. They also have to figure out how to keep huge plants with high fixed costs running. While I’m not a big fan of these types of discounts, the way GM is doing it– employee price– versus typical incentives, may create some extra hype and excitement and get more people into show rooms.