- 15 -
expected to occur in the ensuing period8 if there were no
retail rate support program in place. Thus, there was no
anticipated increase in the number of sales of GM motor
vehicles, but the sales would occur earlier with a retail
rate support program in place than they would otherwise.
The price review group also considered the impact of
"plus" sales. Plus sales were additional GM cars projected
to be sold because of the retail rate support program.
GM's price review group, based on the recommendation of
GM's marketing personnel, set the below-market interest rate
to be offered based on the market for particular vehicles
and competitive conditions.
(4) After approval by the price review group, the
proposal went to GM's executive committee. The executive
committee either approved or rejected the proposal. If
approved, GM notified the car divisions in writing and the
independent GM dealers through an electronic dealer
communication system (DCS) of the retail rate support
program. The DCS message identified the car models covered,
the period of time the retail rate support program was in
effect, and the amount of dealer finance income that would
be earned (or lost) by participating in the program.
8 We assume that this refers to the next financial period.
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