GM Official Regrets Employee Discounting

Washington DC January 6, 2005; The NADA newsletter reported that General Motors Corp.'s top North American sales and marketing executive, Mark LaNeve, said he now regrets launching the employee-discount program that drove GM sales to record levels last summer, and doesn't plan to repeat such promotions this year.

Instead, Mr. LaNeve said in a recent interview that GM will roll back prices, and try to emphasize the advantages of its new models. "We're going to be much more direct this year," LaNeve told reporters Thursday at the Greater Los Angeles Auto Show.

"We'll say, 'Best product, here's why. Best price on an MSRP basis.' We think our product story has gotten lost in all the reporting of our financial results." GM marketing executives and public relations officials have come under fire in recent months from dealers frustrated that GM's financial problems have eclipsed any positive news about its products.

GM spokesman Jeff Kuhlman confirmed that LaNeve will make a "significant" announcement Tuesday at the auto show and that dealers will be informed in a separate satellite broadcast. GM has advised dealers to hold off on new advertising until they hear details of the pricing strategy.

Dealers have also been asked to schedule training sessions so their staffs can explain the program to customers used to big rebates.

(Sources: The Wall Street Journal and The Detroit News)