Power Information Network Reports: Employee Discounts Creating Desired Results for Big Three

WESTLAKE VILLAGE, Calif.--July 21, 2005--Offering employee discounts to all consumers appears to be paying off for the Big Three in the form of increased sales and market share, according to actual retail transaction data from more than 6,200 automotive franchises compiled by the Power Information Network (PIN).

Both Ford Motor Company and DaimlerChrysler, now offering competitive employee discount pricing programs of their own, have rebounded in July from mediocre results in June when GM alone offered employee pricing.

Through the first 15 days of July, GM, whose GM Employee Discount for Everyone campaign extends across all of its vehicle brands, captured 30.3 percent of the retail new-vehicle market compared to 25 percent a year ago and 33.4 percent during the first 15 days of June, according to PIN. In addition, GM's retail sales were up 42 percent in July compared to a year ago.

Ford's share rebounded to 19.6 percent through the first 15 days of the month -- up from 15.1 percent in June and 18.1 percent in July 2004 -- and its retail sales jumped 27 percent versus a year ago. Ford Motor Company's Ford Family Plan offers an employee discount to all consumers for its Ford, Lincoln and Mercury vehicles.

DaimlerChrysler, whose Chrysler Group's Employee Pricing Plus program offers employee discounts on Chrysler, Jeep and Dodge vehicles, carried 12.5 percent of the market through the first 15 days of July -- up from 11.3 percent in June, but down from 13.3 percent a year ago. DaimlerChrysler's retail sales have climbed 11 percent versus July 2004.

"Although GM is tracking slightly behind its June numbers, the company is still having an impressive month," said Tom Libby, senior director of industry analysis at the Power Information Network. "Since Chrysler and Ford adopted similar programs, they are also seeing substantial sales increases."

The three major Japanese companies -- Toyota Motor, American Honda and Nissan Motor -- all have lost market share in July when compared to both June 2005 and July 2004. Toyota Motor has captured 12.6 percent market share, American Honda 8.4 percent and Nissan Motor 6.1 percent through the first half of July, each of which is down versus both June 2005 and July 2004. However, from a sales perspective, the major Japanese companies are holding their own. Nissan (up 22%), Toyota (up 17%) and Honda (up 16%) are all showing sales increases in July versus June, and all three are also up versus July of 2004.

"The domestic programs are expanding the overall market, which is lowering the Japanese companies' shares," said Libby. "But the Japanese are not selling any fewer vehicles than in the past; in fact, they are selling more vehicles than in both June and last July."

While July is shaping up to be another strong sales month, J.D. Power and Associates is holding its annual sales forecast at 16.9 million units.

"These programs are likely pulling forward some of the model year-end sales by a month or two," said Jeff Schuster, executive director of global forecasting at J.D. Power-LMC Automotive Forecasting.

About Power Information Network (PIN)

PIN's automotive solutions are based on the collection and analysis of daily new- and used-vehicle retail transaction information from automotive franchises. PIN's industry-leading automotive solutions incorporate consumer demand and sales information to improve results in product planning, marketing, sales, and vehicle production and distribution processes for its customers including pricing, revenue management, incentives optimization and vehicle remarketing. Additional information is available at www.powerinfonet.com

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, BusinessWeek and McGraw-Hill Education. The Corporation has more than 280 offices in 37 countries. Sales in 2004 were $5.3 billion. Additional information is available at http://www.mcgraw-hill.com.