For some auto makers, offering steep discounts is a tough habit to
break. General Motors, the world's biggest auto maker, has been hooked on
discounts and incentives for nearly four years, starting with its
pioneering offer of zero-percent financing after Sept. 11, 2001. Lately, it
set a new industry trend by offering "employee discounts" on most 2005
models. Though the incentives helped boost sagging sales, they did
little to solve GM's financial woes. But GM today announced it would extend
the discount through August, reversing an earlier decision to find
other ways to cut sticker prices, after Ford and Chrysler said they would
extend similar programs of their own. Some analysts think GM, rather
than spending its time coming up with new and imaginative ways to sell
cars on the cheap, would be better off coming up with new and imaginative
cars, or new and imaginative ways to cut its onerous costs. Chrysler
has been something of a role model in that regard, creating popular new
cars and yesterday announcing a dramatic retooling of its approach to
factories that it hopes will save billions of dollars.

In any event, the discounting programs were like kerosene to car sales
in July. Analysts estimate that wheels rolled off dealer lots at an
annualized pace of some 20 million units, making July one of the hottest
months on record for car sales. Ford said its sales rose 29% from a year
ago, while Chrysler said its sales rose 27%. GM was scheduled to report
sales later in the day.

Source: WSJ

 

That made absolutely no sense... end the Employee Discount program, and start it again the VERY NEXT DAY? Well now some more people can get lower prices, and maybe GM's Ratings will go up MORE.

 

Hopefully they'll keep it through September too so when I get my Cobalt I get a cheap price.

 

that sucks for the people who bought one yesterday.

 

BIG TIME!

 

The dealer I went to ended the employee pricing on Aug 1 and said they were waiting for the new special to come tomorrow (Aug 2) so not all dealerships ended it July 31.

 

wasn't it supposed to end on Aug. 1st not july 31st?

 

The discount price has never applied to 2006 Cobalts. It still only applies to 2005 models. It will not help you for a 2006.

 

Ooo yeah, I forgot the dealer did say that.. Thanks for the reminder..

 

Yeah it did end on the 1st not the 31st and.... also GM has started their new plan they are just keeping this one to get rid of the 05's

 

I work at a dealership and manage their finance department. I see the rebates all the time and all the different programs. All they did is make chevy dealerships cut their profit out of their sales to sell cars. Also, the rebates got a lot worse on all 2005 models. They may have a better price, but with no rebates is it really a better price??? They will continue it until their 2005 models are wiped out.