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General Motors Extends Employee-Discount Plan

Contributed by mm | August 2, 2005 9:13 AM PST





We can declare that the automakers are addicted to the employee discount programs. Is there a way out?

From Wall Street Journal:

General Motors Corp. will extend its popular employee discount pricing program into August, a company spokesman said.

Last week, GM said it intended to end the offers this week. The spokesman said GM was responding to competitive pressure from Ford Motor Co. and DaimlerChrysler AG's Chrysler Group. Both Ford and Chrysler said yesterday that they planned to extend their own employee discounts programs. They had been scheduled to expire this week. The employee deals from the auto makers cover most vehicles models from the 2005 model year.

GM and other auto makers are set to announce July sales figures today. GM, Ford and DaimlerChrysler are expected to report surging sales for July due to the employee-pricing deals. Bob Schnorbus, chief economist at industry analyst J.D. Power & Associates, said the sales rate in the month could top 20 million vehicles, one of the hottest sales months on record.
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