G.M. to Make a 60-Day Money-Back Offer By BILL VLASIC
DETROIT — In an all-out effort to restore confidence in its products, General Motors will offer a 60-day, money-back guarantee on all its vehicles beginning on Monday, according to people involved in the company’s plans.
As part of its marketing campaign, G.M.’s new chairman, Edward E. Whitacre Jr., will be featured as the company’s spokesman in a new television commercial designed to lure consumers back to the company’s showrooms.
The commercials, which feature the slogan “May the Best Car Win,” will make their debut on national television on Sunday. Mr. Whitacre, the former chairman of AT&T, will make a direct appeal to consumers to try G.M. vehicles — and return them after 60 days for a full refund if they aren’t satisfied.
“We’re putting our money where our mouth is,” Mr. Whitacre says in the commercial, according to people who have seen the campaign.
The “Satisfaction Guaranteed” program is thought to be the first time that a major automaker has offered a full refund on a vehicle after it has been sold. The program will cover all of G.M.’s core American brands — Cadillac, Buick, Chevrolet and GMC — and run through November.
The money-back program was conceived by G.M. executives and its board as a dramatic way to promote the quality of the company’s product line after its emergence from bankruptcy in July.
There is no mention in the ad campaign of the $50 billion in taxpayers’ dollars that provided G.M.’s financial bailout this year, or the fact that the federal government owns 60 percent of the company.
Instead, the campaign and money-back promotion is an attempt to focus attention on G.M.’s cars and trucks.
Mr. Whitacre, 67, has said that G.M. must halt its slide in market share in the United States. The company, which once held a 50 percent share of the market in the 1960s, has a 19 percent share so far this year.
The use of Mr. Whitacre as a spokesman is reminiscent of Lee Iacocca’s ads in the 1980s as chairman of Chrysler, when he coined the slogan “If You Can Find a Better Car — Buy It.”
Those ads helped Chrysler rebound after the company needed federal loan-guarantees to stave off bankruptcy.
Other automotive executives have appeared in ads with less success. In 2006, Chrysler failed to jump-start sales with advertisements featuring DaimlerChrysler’s chief executive, Dieter Zetsche.
G.M. declined to comment today in the upcoming advertising campaign or the money-back promotion. The automaker’s board officially approved the campaign this week.
FUNNY this is in this OBSCURE CATEGORY... this is nothing more than any other REBATE DEAL.. without the mail in headaches.. just rent for 60days and ALL $$ are rebated back...then rebuy as USED/
GM thinks consumers are stupid enough to think if a car has a 60-day money-back guarantee, it's somehow more reliable than a car with a 10-year repair warranty. For thinking such thoughts, they deserve to have this promotion abused to the max.
I just saw this on ABC World News. I wonder how much of [strike] our [/strike] GM's stimulus money is underwriting this. I also wonder what they will do with returned vehicles since they can't be resold as new.
It will not be easy as it says. Probably, they will look for dents and some minor damages to the car and you will charged lots of money. Unless, the contacts specify that there will not be any charges for dents or minor damages.
I will buy it on one condition that is: I will pick-up the car with no money paid from my pocket (with the contract stating that there will not be any charges for dents or minor damages). Then, and after 31 days, if I like the car, then I keep it and pay for it, otherwise, I will return it and walk away.
If your car breaks down and you need a new one, but can't even shop for one because you need a car to go to car dealers, this could be the car you use for that. Drive it to all brands but GM, and ask them if they can sell you a better car for less money.
billybabe3883 said: So I wonder what happends to the salesmans commission if the car gets returned?
If nothing happends then have a few friends come in and pay sticker price and return for a nice fat commission
Can anyone tell me how much commission a car saleman get? I'm very curious because every time I asked them they always said they only get $150 for each car they sold.
You all are aiming to put GM out of business, hoping to drive a new car for 60 days and then return it for your money back. No wonder they never offered this before.
This is a bad business model, IMO. I think GM should do this for a fair/reasonable fee. Say, $500, or 1.5% of the purchase price. I think many might be willing to give a new GM car an honest try for $500/60 days. This way, most of the abuse is prevented.
fivetalents said: I just saw this on ABC World News. I wonder how much of [strike] our [/strike] GM's stimulus money is underwriting this. I also wonder what they will do with returned vehicles since they can't be resold as new.
I read something similar on WSJ. Both GM and Chrysler are not likely to pay back a single dime from their initial "loans" from the government. Something in the billions. I wonder we are also footing the bill for this money-back guarantee indirectly as taxpayers?
zzyzzx
Senior Member - 3K
posted: Sep. 11, 2009 @ 9:30a
Just goes to show that GM still thinks that it has no problem that can't be solved by it's marketing department, when it should be solved by it's engineering, procuremt, or design department.
9000 said: GM thinks consumers are stupid enough to think if a car has a 60-day money-back guarantee, it's somehow more reliable than a car with a 10-year repair warranty. For thinking such thoughts, they deserve to have this promotion abused to the max.
No, GM is thinking that if enough people get interested in their products by this deal, they will test drive their cars, say "hmmm, not too bad," drive off the lot with one, and after a few weeks, really like the vehicle and keep it. For thinking this promotion was about reliability during the initial 60 days of ownership, you deserve to have your post abused to the max.
In the other thread, several people were mocking GM's cars. Sure, they have a rich history over the past decade or two (or more) of making some clunkers, oddballs and lemons, but their recent model vehicles have made improvements in leaps-and-bounds. The Equinox compact SUV/crossover, with the 4-cyl. engine, gets 32mpg (best of any SUV, including hybrids), is probably tied with its sibling the Saturn Vue or maybe the Honda CRV as the best-looking small SUV on the market, and car magazines have been praising its interior as being class-leading. I've heard from friends that all of the local dealers are completely sold out of the Equinox and there is probably more demand for it than almost any other vehicle out there. The Malibu is a hell of a lot nicer-looking car than the Accord or Camry and is supposed to be right up there with any of the mid-size cars. The Buick LaCrosse looks better than an Acura TL, although I'm sure it's got too much OldsmoBuick AARP-pleasing tradition behind it to drive like a real sports-luxury sedan. The Cadillac CTS-V competes neck-in-neck with the BMW M5 and is a smidgin faster. The Corvette ZR1 competes with and usually beats any sports car in the world shy of a Bugatti Veyron in the quantifiable categories. I'm betting that most of the I-spit-on-GM snobs have never even sat behind the wheel of a post-2008 GM vehicle.
I agree that GM should have some sort of usage fee on this program to prevent abuse. I'm not saying this is a brilliant business strategy, just that there is some degree of logic behind it and that not all GM vehicles are turds.
LongDongSilver said: How would this work out if you are financing? Wouldn't they hit you with a hefty early termination fee to recoup the loss? I imagine the financing would have to be done through GMAC for the return to work. No other financial services company or a bank in their right mind would sign up.
hkgfnt said: fivetalents said: I just saw this on ABC World News. I wonder how much of [strike] our [/strike] GM's stimulus money is underwriting this. I also wonder what they will do with returned vehicles since they can't be resold as new.
I read something similar on WSJ. Both GM and Chrysler are not likely to pay back a single dime from their initial "loans" from the government. Something in the billions. I wonder we are also footing the bill for this money-back guarantee indirectly as taxpayers?
Must have been some far right wing nut job in the WSJ - can you provide a link?
When a vehicle is purchased, dealers add on a ton of fees.(prep, delivery, documentation, etc) There are additional govt fees on top of it. (tax, registration)
If a good chunk of these fees are refunded, this could be a good alternative to a rental. But if you have to pay sales tax (6% in PA = $1800) then it's not worth it.
Where can we get some details on what is and what is not refunded?
FrugalFreak said: whitacre Jr of AT&T? GM will NEVER NEVER! get one iota of any of my money! If you research him, you will see his opinion of consumers.
Anyone that has ever dealt with AT&T's "customer service" has felt his influence. Here's a random quote:
"I’m not a real techie. I have a computer at home, but don’t mess with it that often. I mean, what am I going to do with 200 e-mails a day? No, I’m really not very techie, but I can use a computer."
Crap now I could not find the article. It did not say both GM and Chrysler flatly said they would not pay back the initial loans. The article said the assumption was based on the best scenario where the stocks of the new GM and Chrysler will go sky high post-bankruptcy. Since it is not happening right now, it means the government would not be able to recoup a large chunk of the money. What is irritating is none of us can get away like that in real life.
I thought about dents and dings as well. If you were to return the car, I'm certain they are going to go over it with a fine-tooth comb looking for any imperfections. Plus, how can they refund you for out-of-pocket costs for license plates and, if applicable, state inspection sticker??
lousygolfer said: 9000 said: GM thinks consumers are stupid enough to think if a car has a 60-day money-back guarantee, it's somehow more reliable than a car with a 10-year repair warranty. For thinking such thoughts, they deserve to have this promotion abused to the max.
No, GM is thinking that if enough people get interested in their products by this deal, they will test drive their cars, say "hmmm, not too bad," drive off the lot with one, and after a few weeks, really like the vehicle and keep it. For thinking this promotion was about reliability during the initial 60 days of ownership, you deserve to have your post abused to the max.
In the other thread, several people were mocking GM's cars. Sure, they have a rich history over the past decade or two (or more) of making some clunkers, oddballs and lemons, but their recent model vehicles have made improvements in leaps-and-bounds. The Equinox compact SUV/crossover, with the 4-cyl. engine, gets 32mpg (best of any SUV, including hybrids), is probably tied with its sibling the Saturn Vue or maybe the Honda CRV as the best-looking small SUV on the market, and car magazines have been praising its interior as being class-leading. I've heard from friends that all of the local dealers are completely sold out of the Equinox and there is probably more demand for it than almost any other vehicle out there. The Malibu is a hell of a lot nicer-looking car than the Accord or Camry and is supposed to be right up there with any of the mid-size cars. The Buick LaCrosse looks better than an Acura TL, although I'm sure it's got too much OldsmoBuick AARP-pleasing tradition behind it to drive like a real sports-luxury sedan. The Cadillac CTS-V competes neck-in-neck with the BMW M5 and is a smidgin faster. The Corvette ZR1 competes with and usually beats any sports car in the world shy of a Bugatti Veyron in the quantifiable categories. I'm betting that most of the I-spit-on-GM snobs have never even sat behind the wheel of a post-2008 GM vehicle.
I agree that GM should have some sort of usage fee on this program to prevent abuse. I'm not saying this is a brilliant business strategy, just that there is some degree of logic behind it and that not all GM vehicles are turds.
I just wanted to say that I think all the cars you mentioned are definitely not as nice looking as the Japanese competitors you compared them to. I disagree!
Whatatay
Senior Member - 1K
posted: Sep. 12, 2009 @ 3:28a
tuphat said: From NYT --
G.M. to Make a 60-Day Money-Back Offer By BILL VLASIC
DETROIT — In an all-out effort to restore confidence in its products, General Motors will offer a 60-day, money-back guarantee on all its vehicles beginning on Monday, according to people involved in the company’s plans.
All-out effort? Sounds like a half assed gesture to me. Increase it to at least a year and then I will says it is an all-out errort.
MrNovember said: I just wanted to say that I think all the cars you mentioned are definitely not as nice looking as the Japanese competitors you compared them to. I disagree!
Well, there is a significant subjective component to aesthetics, but I think you would probably find yourself in the minority as far as the models I named. Do you honestly think the current model Acura TL is better looking than the LaCrosse? Come on - if the Pontiac Aztec gave birth to a luxury-sports sedan, it would be the 2010 TL, which is nearly universally accepted in the automotive world as being uglier than Rosanne Barr's ass. The Malibu has clean, sharp lines while the current Camry and Accord are extremely dull designs broken up only by odd bulges.
Insurance for everything. Mr. Lutz said GM expects only a 1% return but:
"To protect itself from an unexpectedly high percentage of returns, he said, GM has taken out insurance on the offer. Lutz said that in a similar program run by Vauxhall, GM's unit in the United Kingdom, about 3 percent of purchases came back." (LA Times, Ken Bensinger)
I still think the consumer will bear some costs in damages, or at min, sales tax and dealer add ons/dealer fees on the return. Seems to be a security blanket for the person who really wants the GM car, but isn't certain or might be one of the 5-8% that have buyer's remorse, like I said above.
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