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One dealer incentive program involved the payment of "close
out allowances" to independent GM dealers. Under the terms of
the sale from GM to an independent GM dealer, if the independent
GM dealer could not resell a vehicle by a specified date, GM paid
a "close-out allowance" to the independent GM dealer. Close-out
allowances were intended to encourage independent GM dealers to
purchase and stock current model year vehicles.
Other dealer incentives included cash payments tied to the
volume of vehicles either sold by the independent GM dealer or
purchased from GM by the independent GM dealer. These dealer
incentives might apply to particular vehicle lines or to total
numbers of vehicles sold or purchased. Various sales incentives
were also paid to dealership salespeople.
Independent GM dealers were also given the opportunity to
purchase certain upgrades or option packages for certain vehicle
models at either a reduced or no additional cost.
B. Retail Customer Incentives
In addition to dealer incentives, GM established programs
involving retail customer incentives to increase sales of GM
motor vehicles. GM retail customer sales incentives included:
(1) Cash rebates and incentive packages, (2) discount option
packages, (3) reduced financing rates made available through
GMAC, and/or (4) allowing the purchaser to delay the initial
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Last modified: May 25, 2011