GM Employee-Discount-For-All Promotion Fails to Lure Import Buyers

"We fell just a little short of doubling our conquest sales in June, which, from our perspective, is a very good result," stated

While GM was able to claim some conquest sales from its Big 3 competitors, the campaign didn't work on import customers. (Photo: Trevor Hofmann, Canadian Auto Press)

Deborah Silverman, a GM spokesperson, adding that the Employee-Discount-For-All promotion brought in more than 150,000 new buyers in June, compared with an average of 80,000 or 90,000 new customers in a typical incentive program.

It is true that GM did pull in some new buyers from its Big 3 competitors, Ford and Chrysler Group, but the campaign didn't work on import customers.

But while there are disputable numbers whether inside GM or outside in the Power Information Network's camp, one thing's for sure. The customers' appetite for incentive programs has just been fed a mouthwatering

The customers' appetite for incentive programs has just been fed a mouthwatering money-grab. (Photo: General Motors of Canada)

money-grab, and like all incentive campaigns, this one is not about to go away anytime soon.

And GM's willingness to extend the promotion throughout July has prompted Ford and Chrysler to come forward with employee-discount plans of their own, an effort to eliminate potential customer erosion. Now with rivals imitating GM's promotion, there is a much lower opportunity for conquest sales and any positive results will most likely be pulled from GM's future buyer bank, trading off fast cash for less long-term profit, if this can be considered positive.

"There's less reason for a Chrysler owner or Ford owners to switch to GM when they can get the same thing from their own company," Libby added.