Facts Show GM's Deep Discount Failed to Lure Buyers From Rival Brands

Washington DC July 13, 2005; The AIADA reported that according to the Detroit News, GM’s blockbuster sales month in June did not include significant gains from other automakers. 63.1 percent of vehicles traded in for new vehicles were GM models, compared to a 64 percent rate in May. This data suggests that GM “may have simply pulled sales from future months and will have to pay the price later in the year,” the article states.

GM sales were up 46.7 percent in June, which reduced dealer inventory, but most of the gains came from existing brand loyalists, according to data from the Power Information Network. GM disputes these findings, and claims the number of "conquest" sales were up by nearly 50 percent in June.

Deborah Silverman, of GM, said the company attracted over 150,000 new customers in June, compared with 80,000 to 90,000 during a typical incentive campaign. GM’s sales gains are not expected to be as significant this month, as Ford and Chrysler have tendered their own employee discount programs.