GM Card Q1 2009 Top Off Incentive Offer

PROGRAM EXPLANATION

TO:               All RDMMs, ARDMMs, ZMs, ASMs and GM Dealers

FROM:          GM Cardmember Services – Detroit, MI

SUBJECT:     2009 Q1 GMCS Top-Off Earnings Retail Program

PROGRAM OVERVIEW:

GM Cardmember Services (GMCS) is sending select GM Card and GM Flexible Earnings Card Cardmembers a direct mail piece that includes a special Bonus Earnings “Top-Off” offer toward the purchase/ lease of an eligible, new GM vehicle between 1/6/09 and 2/2/09.

OFFER OVERVIEW:

GMCS will add Bonus Earnings to select Cardmembers’ Accounts so that they total either $2,000 or $3,000 in Topped off Earnings.

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“Yes, you can use the word free in your advertising,” writes Jim Boldebook in Dealer Magazine. “No, you probably can’t use it with reference to the sale of a car, as in free options or extras as most states have now ruled there is no such thing as free anything in a car deal, but you can use the word free in a number of ways to capture the attention of your intended audience.” Oh, do tell. “The word free can be used in copy such as ‘Set yourself free from high payments with our lower lease rates.’ Or, ‘Free yourself from maintenance worries with our all inclusive maintenance program included on most of our new models.’ You can even use the word free in disassociating it’s use in your ad copy, such as: ‘While we are not allowed to say this GPS system is free, we can you say won’t pay one penny extra for it with the purchase of any new X or Y model.'” And that’s why Jim’s agency, Creative Broadcast Concepts, gets the big bucks. If you’ve already taken your blood pressure meds, Boldebook provides his dealer readers– and you!– with a specific example after the jump.

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One of our Best and Brightest has received a bit of mail recently… “My GM Card has collected $777 towards a new GM of my choice. They sent me a snail mail volunteering to up it to $2000, no questions asked. And here’s the kicker: “Valid in conjunction with all other rebates and offers.” (I’d scan and email it to you, but my scanner has taken a dump.) Sweet, but I wish they go ahead and knock 75% off the price of a new truck, as opposed to this 50% bullshit. Then, I’d place it under ‘definite maybe, but forget about it because the economy sucks’ status.”

Money’s too tight to mention. But Rick Brown, president of GM Asia Pacific, mentioned it to Automotive News [AN, sub]. “We won’t be participating [in the you can call it the Tokyo Auto Show]. If you really look at the business conditions that we are in right now, where we really have to make a bang out of every buck we spend, it’s simply a business decision.” AN reckons a presence at the Tokyo show cost $2m. No wonder Japan’s Yomiuri newspaper says Ford and Chrysler also “missed” last year’s deadline to register for the show. That’s the price of one year’s G4 lease! As we reported yesterday, the Japan Automobile Manufacturers Association is hemming and hawing about whether or not to cancel the event until 2011. Previous media speculation centered on whether one of Japan’s “Big Three” (Toyota, Honda, Nissan) would withdraw and kill the event. Now, with the Americans out of play, it’s only a matter of time. Who’s next to go? New York? Barcelona? Watch this space.

*  Light vehicle sales tumbled 18% in 2008, to 13.2 million units from 16.1 million in 2007, with the selling rate deteriorating significantly in the second half of the year, finishing with a barely-breathing 10.3 million SAAR in Q4.

* Sadly, it looks like 2009 will be even worse than 2008. Our latest forecast for 2009 US light vehicle sales is a shade under 12.0 million units, which is down from our earlier forecast of 13.0 million, and down another 9% versus 13.2 million in 2008.

* North American light vehicle production in this scenario should be in the range of 10.6 million units, down about 13% vs. 12.2 million in 2008, reflecting the sequential decline in sales, as well as an oversupply of vehicles remaining on dealer lots at year end. The year-to-year drop in production should be even more pronounced for the Big 3 (about 19%).

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TTAC commentator Kurt B writes: “I’ve been a long-time Mazda owner; I’m on Mazda number six. But I’ve finally hit the wall. The center stack is too wide in my current Mazda 3 and the seat doesn’t slide back far enough, which forces me to tilt my right foot to the right slightly while driving. Now that I’m approaching 40 (I suppose that’s the reason) I’m starting to get wicked hip and joint pain and a sore knee on drives over an hour, which are, unfortunately, too frequent these days. I also own a Mazda 6 wagon which is slightly better but not perfect. Headroom is another issue to be considered as I’m 6’4″. The Mazdas have no problem there.” So, assume that Kurt B wants the same car only better. What would that be?

I admire Henrik Fisker’s adaptability. When he realized that the high end market didn’t want reskinned German cars, he put his business plans int he greenwasher and emerged with cash-in-hand. Fisker decided he wanted to build a beautiful, powerful hybrid car– and that’s just what he wants to build. The Karma is quite an achievement, in terms of design, technology, and convincing someone to give Fisker millions of dollars. But then there’s the sanctimonious EcoBabble™. One of our Best and Brightest emailed me an excerpt from the brochure today, and the bits about the interior trim, well, judge for yourself. “Wood trim is recovered from trees found in America’s wilds: Fallen Trees™ that have succumbed to age; Rescued Trees™ burned in forest fires; and Sunken Trees™ lying on lake bottoms.” “Recylable EcoGlass™, made from naturally occurring sand…” “The EcoSport™ series incorporates hand-wrapped premium leather processed using a 100 percent sustainable Happy Cow™ manufacturing strategy…” If a tree falls in the forest, but no one trademarks it…

Ford’s El Presidente de las Americas has been out and about, doing the rounds, talking up the company’s prospects to the media. And Mark Fields has a good story to tell: Ford’s not Chrysler or GM. Thankfully, Bloomberg cuts through the chatter to ask the key question: at what point would FoMoCo tap into Uncle Sugar’s Blue Oval-shaped $9b bailout– I mean, line of credit? Fields said he’ll only proffer the begging bowl if “the economy continues to deteriorate well beyond our assumptions.” Define “well beyond.” Nope. Well, at least we get a look at Ford’s assumptions. “Ford Motor Co. is forecasting that this year’s U.S. sales of cars and light trucks may fall as much as 9 percent from 2008, when they reached a 16-year low. Industry sales will be 12 million to 12.5 million, with the first half weaker than the final six months.” “After the last couple years, we hope we’re at a bottom because it’s a pretty low level of activity for the industry,” Fields said. Again with the hope. Oh, and did I mention that Ford CEO Alan Mulally didn’t get the memo on the 12m bailout floor?

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I know: shooting fish in a barrel. (“If only those damn fish would keep still. Martha? Martha! Where are my reading glasses? Damn! I dropped them. In the barrel! I said… Oh never mind.”) But Automotive News [sub] is reporting that Buick is changing its tagline– again– without telling us the new motto. Just in case you’ve forgotten (“Martha? Martha! Where’s my damn medication?”), Buick’s current tagline is “Drive Beautiful.” In the past, we’ve been asked “Wouldn’t You Really Rather Have a Buick?” and told “You’re Better Off With a Buick.” Buick was once “The Beautiful Buy” (hence the outgoing motto), although before that it was more of a head than heart deal, apostrophes be damned (“Smart Buy’s Buick”). And we all know that “When Better Automobiles [crossovers? minivans? SUVs?] Are Built, Buick Will Build Them.” Oh, I forgot “The Solid Feeling.” And the wartime “Buick Powers the Liberator.” And “Better Buy Buick.” And “Buy Buick’s Best.” And “Buick’s the Beauty.” And “It’s Buick Again.” [thanks to oldcarandtruckads.com]

“I’ve never quite been in this situation before of getting a massive pay cut, no bonus, no longer allowed to stay in decent hotels, no corporate airplane,” GM Car Czar Bob Lutz tells NPR radio. “I have to stand in line at the Northwest counter. I’ve never quite experienced this before. I’ll let you know a year from now what it’s like.” Hopefully not. Meanwhile and before that, Maximum Bob was busy comparing the Chevy Malibu to the VW Phaeton. On one level, I’m down with that. The VW Phaeton was a stunning car, in an absurdly misbranded, high-tech kinda way. I mean, we’re talking about a vehicle that automatically adjusts the angle of its sunroof at speed to protect occupants from sonic distress. But during his don’t call it The Detroit Auto Show interview, GM Car Czar Bob Lutz proudly reveals that the Chevy Malibu took its styling cues from the ill-fated Phaeton. What styling cues? Of course, there’s more Maximum Bobage to be savored here.

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No really. (Remember: we don’t diss Autoblog any more.) Scribe Sam “Is There a Draft Out There” Abuelsamid has noticed a new technology on the otherwise Lincoln WTF– I mean Concept C that’s way cool. I think. “Take a close look at the brake caliper in the photo above. Typically, the brake rotor is attached to the wheel hub and the caliper grips the disk from the out edge. On the Concept C, the braking surface is attached to the inside edge of the wheel rim with caliper wrapping around the inside edge of the rotor… An internal caliper mount has the advantage of allowing a larger effective radius for where the braking force is applied. Since torque is defined as a force applied at a distance from a pivot point, the greater the distance, the greater the braking force. Such a setup allows more brake force with a smaller caliper, which in turn can provide better brake feel since the fluid displacement is smaller. The downside is that changing wheels becomes a much more complicated matter since the brake hardware is mounted on the wheel.” Man, I’ve got to get out more.