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GM likes employee pricing, dealers not so much

General Motors says its employee-pricing incentive offer kept an August sales decline of 20.3 percent from being even worse. It has extended the incentive program to Sept. 30. Our community is hardly enthusiastic.

Two writers, almost certainly dealers, say that helps GM but not its dealers.

“I still don’t see how cutting your profit margins helps you make money unless sales pick up dramatically,” says lucid90, who does not expect a sales uptick until energy prices drop.

Recalling the first time GM used employee-pricing, 176208 writes “sold 108 units the first time in 2005 and lost $13,000 in new-car [department]. Can’t wait to see our statement for August and September!” The program is “great for GM but bad for dealers."

Reacting to Ford August results that shows a modest gain in pickups and SUV sales as gasoline prices decline, UH2L says “It’s sad that people are swaying toward buying trucks again. They better not complain if gas prices go beyond $4 a gallon.”

This year’s dramatic swing away from trucks to higher-mileage cars and small SUVs and a general sales slump has certainly shaken up the U.S. auto industry, from suppliers and auto manufacturers right through to car dealers.

How are you affected?

How will the market move the rest of the year? When will sales pick up again? If you have some thoughts, we’d love to hear them. Drop me a line by clicking on the “add a comment” box below this blog or any story on our Web site.

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