DETROIT -- General Motors dealers are edgy, awaiting word on how the automaker plans to help them clear out remaining 2005 inventory as the GM Employee Discount For Everyone sale is set to expire today, Aug. 1.
One dealer says that a GM zone representative said GM will extend the employee discount pricing program. Ford Motor Co. has opted to extend employee pricing discounts through Labor Day and has added some 2006 models to the program.
GM started the trend with its employee pricing discount in June. Ford and the Chrysler group followed in July.
During an afternoon conference call discussing GM's plan to shift to total value pricing on 2006 models, Brent Dewar, GM vice president of marketing and advertising, remained mum on whether GM would extend its employee pricing program.
"We will announce our 2005 and 2006 base-line incentives tomorrow," Dewar said. Dewar added that the total value pricing on 2006 models will be used in conjunction with incentives.
Total value pricing means that GM is lowering the sticker price on many 2006 models to be closer to the transaction price: the price the customer ultimately pays.
The incentives on GM's 2006 models will not be as aggressive as the recent employee-pricing incentives were on the 2005 models, says Steve Hill, director of brand and retail marketing. But, he says, the 2006 incentives will be "very, very competitive."
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