The GM Employee Discount for Everyone promotion is slashing the supply of new vehicles at many General Motors dealerships. As a result, some dealers say they are stepping up their orders of 2006 models.
Other dealers are more cautious. They express concern that the GM discount program, which offers vehicles to buyers at 3 to 5 percent below dealer invoice, may be pulling ahead future sales.
"We're going to be aggressive" in ordering, says Paul Rubin, a Pontiac- GMC dealer in White Bear Lake, Minn. He would not be specific.
"I think that you're going to have some dealers starving for stuff," says Rubin, who co-chairs GM's national dealer council.
The employee discount helped boost GM's U.S. sales last month by 46.9 percent over June 2004. The supply of GM cars and light trucks dropped from 73 days on June 1 to 48 days on July 1. The incentive program continues this month.