General Motors Corporation and Subsidiaries - Page 14




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               support program.  The car divisions submitted the proposal              
               to GM's operating analysis section (OAS), which was part of             
               the GM comptroller's staff.  OAS worked with the car                    
               divisions in preparing the financial analysis and a proposal            
               for the price review group.  The proposal suggested the                 
               vehicles to be covered, the interest rate to be offered, and            
               the period of time the program would be in effect.                      
                    (3)  The price review group reviewed the proposal.  In             
               deciding whether to approve a retail rate support program,              
               the price review group considered projections of income                 
               impact to the affected GM car divisions and GMAC based on               
               the cost of the program plus the gain from projected                    
               increased vehicle sales.  The price review group's                      
               consideration of projected income impact included projected             
               increased contract penetration by GMAC.                                 
                    The price review group also considered the "gross stock            
               days supply" with proposed vehicle lines chosen to address              
               "days supply" problems of specific car divisions.  "Gross               
               stock" is the number of vehicles that are in the field                  
               available for sale.  The "days supply" is the projected                 
               number of days it would take to sell that gross stock.                  
                    The price review group evaluated some programs and                 
               found that the entire expected sales increase would be "pull            
               ahead" sales.  Pull ahead sales were sales GM reasonably                





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