General Motors May Extend Employee Discount Program to All Buyers Through End of July

WASHINGTON Ken Thomas writing for the AP reported that General Motors Corp. said Friday it may extend its employee discount program to all buyers through the end of July, encouraged by a strong response from consumers and dealers.

GM, in an attempt to boost sales, has given the same discount it provides to employees to anyone buying a new GM car or truck between June 1 and July 5. The program includes all GM vehicles except the Chevrolet Corvette and GMC medium duty trucks.

"The reaction to the program has been, to this point, way beyond what we thought," said Mark LaNeve, GM's North American sales and marketing chief. The world's largest automaker has received "great feedback" from dealers, customers, and employees, he said.

LaNeve, visiting with Chevrolet dealers in the Washington, D.C., region, said the incentive has been a "great program" to help re-establish momentum during a "rough year."

"We're considering it. We'd be crazy not to. Our dealers really want us to. But we haven't made that decision," LaNeve said. A decision would be made based on a review of GM's inventory and wouldn't likely be reached until the end of the current program.

J.D. Power and Associates reported last week that GM's share of new-vehicle sales hit 30.3 percent for the first 12 days of June, boosted by the program. GM's U.S. market share was 25.4 percent for the first five months of this year, down from 27.6 percent in 2004.

Ford Motor Co. followed with its own incentive program, offering up to $1,000 in cash to employees and retirees who persuade friends, relatives and neighbors to buy new cars and trucks.

LaNeve said there will be some payback in sales later this summer because of strong sales during the incentive program, but said it could be minimized by the launching of new products for the 2006 models arriving in showrooms later this year.