Free Cars for All

GM’s answer to their predicament of losing money on every car they sell? An incentive program selling cars to all at employee discounts. So, as Autoblog notes, they’re not only offering unsustainable incentives, they’re probably cannibalizing their post-incentive sales too. Sheer genius.

As Leadership Now suggests, GM’s problems are all over the map, and their solutions so far have been less than convincing. They’re beyond shrinking their way to mediocrity – they’re in danger of rushing headlong into oblivion, and taking a lot of people down with them.

Certainly LN’s argument on health costs is valid. Ontario now produces more cars than Michigan, and health care is a major reason why. America will have come to terms with its unsustainable health care system, or watch as corporations either abandon American corporate welfare or abandon America altogther.

That noted, it’s not like more foreign-built GM cars are helping the bottom line. You know you’re in trouble when you have to bribe consumers to buy your product, and GM’s being doing it for a while now. GM’s rebates and free financing deals are beyond cheap – they’re desperate. This lowers the brand in everyone’s eyes and makes it easy for consumers to demand even more concessions.

Chevy renaming everything recently doesn’t help. Calling the Cavalier a Cobalt isn’t fooling me, and spending millions to tell me differently isn’t going to work.

It’s not just some optics issue. The main culprit here is quality – GM’s cars are perceived as cheap crap because, well, many of them are.

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