GM offers big incentives to move Saturns


Do the math and GM is offering a possibility of northwards of $46 million in incentives to move the last 9,400 Saturns. Since all Saturns remaining are already in dealer's hands and paid for, that means GM could burn through that much cash with no additional income on their books coming to them from those Saturn sales. Add to that the fact that almost all of those Saturn sales will come at the expense of other GM brands that offer the same model, different name, without such generous givebacks, and you have another example of GM management failure. Since many, if not most, of the remaining Saturn stores are looking for new franchises, these dealers are in no particular hurry to move all their remaining inventory. Dealer cash assistance would be a much better alternative, the dealer could use the money to offset his expenses due to lower volume sales, or choose to give some or all of it in discounts to clear inventory. The dealer cash alternative does less harm to other GM brands and eases the burden of the remaining Saturn retailers. Lastly, why would GM offer a Saturn loyalty bonus incentive of $1,000 to buy another Saturn now? That offer should come AFTER Saturn has wound down, with the hopes of getting former Saturn buyers to consider other GM products for their next purchase.



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