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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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