new Pontiac
New Pontiac
GM(General Motors Co) has been forced to offer discounts and incentives for the dealers on their inventory leftover of Pontiac and Saturn cars. One of the leading vehicle manufacturing companies in the world has played its cards wrong and finally they came up with a compromising price for their previous models of Pontiac and Saturn cars as they are ready to launch the fire sales on Pontiac and Saturn cars to get the place for the inventory of the new and upcoming models.
GM is a great name in the business market and especially in car market, the fire sale and heavy incentive offering proved that the analysis and forecast of the supply chain of Pontiac and Saturn cars wrong and now they are facing heavy retention cost.
It has been reported that an incentive of $7000 has been offered to the dealers on each vehicle of Pontiac and Saturn. The vehicles will be shifted to the dealer's service and rental fleets immediately. This will enable the dealers to sell the cars as low as 45 % of the original prices but the dealers will be selling the cars as used not as the new cars. The offer is valid for the dealer till 4th January 2010.
The dealers will be the first owners of the cares so the cars will be sold in the market as used cars, which might be the hurdle that dealers would be facing, as the buyers will consider the price of the vehicle as used and at the same time they have to keep an eye on the resale as well. On the other hand the used cars will not be facilitated under the warranty of General Motors Cotechnically, but General Motors Co has assured the after sales to some extent as they are just trying to make their place available for the upcoming models.