GM Dealers to Market Used Cars

02/13/96

Reuters reported that GM is planning to have all of its divisions begin marketing used cars with warranties and at no-haggle prices. The company hopes to announce specific plans during the first have of this year. Currently GM's Saturn and Cadillac divisions have formal used car marketing programs; their used Cadillac certification program, has been highly successful for dealers, helping them to increase their used car sales and increase customer loyalty.

GM hopes that brand recognition will give them an edge over other similar ventures that are already springing up or in place. Circuit City's CarMax and a new chain called Driver's Mart are examples of the kind of competition GM will be facing.

GM is currently in the midst of a dealership consolidation process which will see more than 2,500 closures consolidations and relocations in the next five years. Their Oldsmobile division will bear the brunt of these changes, as Oldsmobile sales have dropped over 60% since 1986.

In spite of dropping sales, Oldsmobile revealed its second new midsize car in as many months. The 1997 Cutlass was unveiled over the weekend. The $15-17,000 price range Cutlass has been designed to recall the divisions past, in spite of the fact that Oldsmobile is consciously trying to change its image to appeal to younger, import-oriented buyers. GM described the new car as an anchor to the traditional Olds buyer. The other new Olds, the Intrigue, is aimed solidly at import buyers.

Paul Dever -- The Auto Channel