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Free Press Says GM to Expand Discounts: Clues on Whether GM Products Still Have Marketable Value
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Detroit Free Press Says GM to Expand Discounts: Clues on Whether GM Products Still Have Marketable Value
By James B. Bleeker
The Detroit Free Press reports that General Motors Corporation will announce Wednesday, June 1st, that it will extend employee discounts to all comers - employee and nonemployee - on all products, save the 2005 Corvette. The newspaper describes it as "yet another tactic to drum up sales."
In the past six months, the consumer shift toward quality and out of GM products has been dramatic and has left GM with very large dealership inventories.
A successful reduction of GM dealership inventories will give a good indication that GM products still have value to persons other than repetitive buyers. Little or no inventory reduction will give a measure on consumer determination in their shift out of GM products and into the quality products of the Top Four auto manufacturers - Toyota Motor Corporation, Honda Motor Company, the Subaru division of Fuji Heavy Industries, Ltd., and Nissan Motor Company.
Source for planned inventory reduction: "GM Lets Everyone in on Its Discounts," Detroit Free Press, Michael Ellis, May 28, 2005, at http://www.freep.com/money/autonews/gm28e_20050528.htm
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