GM's Used Car Veep Heichel's Market Insight

LAS VEGAS, NV - In the keynote address today at the Fleet/Lease Remarketing 2002 Conference, Jeff Heichel, GM's director of used vehicle activities, said, "Combined industry sales for certified used vehicles will hit the one million mark by the end of this year."

Last year all manufacturers sold about 670,000 certified used vehicles in the United States; after sales of approximately 460,000 certified units in 2000. In particular, GM refocused its Certified Used Vehicle program last year and, with strong participation from its dealers, saw sales triple to more than 100,000.

Heichel said there is tremendous potential for continued growth in this segment. "Research from J.D. Power and Associates estimates that about 46 percent of Americans are aware of used vehicle certification. Yet, the certified used industry has penetrated just 11 percent of the vehicles that qualify for manufacturer certification. That leaves almost 90 percent of the industry to be conquered," Heichel said.

"Also, we know if consumers are happy with their used car experience, they're very likely to stay loyal to the brand. It's a business that's building repeat business."

In addition, Heichel stated that certified used vehicles sell faster than non-certified vehicles, and consumers are willing to pay more for the benefits a certified vehicle provides.

"We've seen demand increase for our used vehicles mostly because consumers have more peace-of-mind when making their purchasing decision. Frankly, a used vehicle that meets certification standards and provides a manufacturer-backed warranty is more attractive than other non-certified vehicles."

Heichel said that "certified" isn't yet a household name to the consumers, but he predicts that will change soon. "Last year, CNW Marketing Research indicated that the certified used industry spent close to 300 million in advertising dollars. To me, increased spending on advertising and special promotions is a clear indication that the certified concept will become mainstream in a matter of time."

"With the strength and support of our dealer network, we plan to be the segment leader for certified used vehicles. We're committed to working with our dealers to market the entire lifecycle of our products," Heichel said. GM has enrolled 3,000 dealers to sell the Certified Used Vehicle brand.

GM Certified Used Vehicles are high quality, reconditioned, factory-backed vehicles available at participating General Motors dealers. All models are five years old or newer; have 60,000 miles or less; and are reconditioned to GM Certified Used Vehicle standards under GM's rigorous 100 point inspection and reconditioning process. For more information about GM Certified Used Vehicles, visit www.gmbuypower.com, which features exclusive vehicle listings.