Gripenfelter
05-24-2006, 09:29 AM
http://money.cnn.com/2006/05/23/news/companies/gm_autos.reut/index.htm
GM offers $1.99 gas in Florida, California
In effort to capture buyers, automaker says it will cap prices for those who buy certain SUV or mid-size car models.
May 23, 2006: 7:14 PM EDT
DETROIT (Reuters) - General Motors Corp. said Tuesday it would subsidize gasoline purchases in Florida and California to boost sales in those key markets.
GM (Research) said it would cap the price of gas at $1.99 a gallon for new buyers of some of its 2006 and 2007 full-size sport utilities and mid-size cars in those states.
The gasoline credit would be based on a consumer's estimated monthly fuel usage.
Consumers would be credited for the difference between the average price per gallon of premium fuel and the $1.99 price, adjusted for the miles they drive, GM said.
The credit would be applied monthly to a pre-paid credit card and would be valid until the end of 2007, with no limits on mileage, GM said.
For example, GM said a California resident who buys a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would see an estimated $103.75 monthly credit. A Floridian who buys a 2006 Buick LaCrosse and drives the same distance would get a monthly credit of about $60, GM said.
The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars.
GM has lagged in some faster-growth U.S. markets such as Florida and California.
"This incentive is likely to get the attention of many consumers," said Jesse Toprak, director of industry analysis for Edmunds.com. "The actual dollar savings amounts to about $1,000 per vehicle."
GM's average incentive spending had averaged $3,050 per vehicle through April, below the level of spending by Ford Motor Co. (Research) and Chrysler Group, according to Autodata Corp.
Vehicles eligible for the fuel rebate include the 2006 and 2007 Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL, and the HUMMER H2 and H3, the company said.
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GM offers $1.99 gas in Florida, California
In effort to capture buyers, automaker says it will cap prices for those who buy certain SUV or mid-size car models.
May 23, 2006: 7:14 PM EDT
DETROIT (Reuters) - General Motors Corp. said Tuesday it would subsidize gasoline purchases in Florida and California to boost sales in those key markets.
GM (Research) said it would cap the price of gas at $1.99 a gallon for new buyers of some of its 2006 and 2007 full-size sport utilities and mid-size cars in those states.
The gasoline credit would be based on a consumer's estimated monthly fuel usage.
Consumers would be credited for the difference between the average price per gallon of premium fuel and the $1.99 price, adjusted for the miles they drive, GM said.
The credit would be applied monthly to a pre-paid credit card and would be valid until the end of 2007, with no limits on mileage, GM said.
For example, GM said a California resident who buys a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would see an estimated $103.75 monthly credit. A Floridian who buys a 2006 Buick LaCrosse and drives the same distance would get a monthly credit of about $60, GM said.
The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars.
GM has lagged in some faster-growth U.S. markets such as Florida and California.
"This incentive is likely to get the attention of many consumers," said Jesse Toprak, director of industry analysis for Edmunds.com. "The actual dollar savings amounts to about $1,000 per vehicle."
GM's average incentive spending had averaged $3,050 per vehicle through April, below the level of spending by Ford Motor Co. (Research) and Chrysler Group, according to Autodata Corp.
Vehicles eligible for the fuel rebate include the 2006 and 2007 Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL, and the HUMMER H2 and H3, the company said.
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