All Commentary
Tuesday, December 29, 2009

GM Plans Pontiac/Saturn Fire Sale

“General Motors Co. is offering its dealers hefty incentives to move thousands of leftover vehicles from its discontinued Saturn and Pontiac brands. The unusual tactic could inflate the car maker’s December sales and cut the cost to car buyers by as much as 46% off the sticker price.

“In what is equivalent to a year-end fire sale, GM sent letters to dealers Dec. 23 saying it would pay them $7,000 for every new Saturn or Pontiac on their lot that is moved to rental-vehicle or service-vehicle fleets operated by the dealers. Dealers can then sell the vehicles at a more attractive price, though they must be described to customers as used because the dealers technically will be the vehicles’ first owner.” (FoxNews, Tuesday)

If I didn’t know better I’d think the government was running GM.

FEE Timely Classic:
Government Motors: Why it Will Fail” by William Anderson