General Motors Corporation and Subsidiaries - Page 9




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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