GM Plans to Push Used Pontiacs and Saturns
December 29, 2009 by Maurina
It looks like General Motors has a strategy for selling its remaining fleet of Pontiac and Saturn vehicles. As you may remember, both companies were discontinued earlier in 2009, leaving dealers and owners wondering about the future of their vehicles. According to a Reuters article, GM is offering dealerships $7,000 for every Saturn and Pontiac they put into rental or service vehicle duty. Why would General Motors want dealers to use their inventory for themselves instead of trying to find buyers? It turns out the answer is three fold.
For one, new car buyers across the country are very wary right now. That means manufacturers everywhere are offering some serious incentives on their models, and the newly orphaned brands from General Motors aren’t on the top of anyone’s wish list. Instead of cutting the cost of those cars to the point that neither GM nor the dealers would make a profit, GM hopes paying dealers to use Pontiacs and Saturns will pay dividends.
Since the dealer will become the first official owner of the Pontiacs and Saturns, GM’s sales reports will look significantly better for the end of 2009. That’s good news for everyone, but the real genius of the plan comes in later. Once the dealer is through using the fleet cars, they can then be sold as used vehicles or CPO vehicles at a much lower price.
Soon, buyers may have a shot at a near new Pontiac or Saturn at thousands off of the cost of a new vehicle. At the same time, dealers will be able to move stock that would have been difficult to sell otherwise, and GM’s sales look brighter and brighter.
Sounds like a win-win-win to us.
Source\\ Reuters
Category: Hot News
