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Discussion Starter · #1 ·
Unfortunately only Ford Lincoln Mercury... no Mazda or Volvo etc

The Detroit News

Big 3: Employee deals for all

Eager to taste sales success of their own, Ford and Chrysler match GM's big discounts.

By Eric Mayne and Brett Clanton / The Detroit News

About the deals

GM: Employee pricing varies by model, but is about 3 to 4 percent below dealer invoice. It's available on new cars and trucks through Aug. 1. Deal excludes Chevrolet Corvette, Pontiac GTO and medium-duty trucks.

Ford: Noncompany employees pay about 5 percent below invoice, plus available cash rebates. Lincoln Mark LT and Ford Mustang, GT and Escape Hybrid are excluded.

Chrysler: Consumers pay 4 to 5 percent below invoice, in addition to any available cash rebates. Deal excludes Chrysler 300, Dodge Magnum, Dodge Charger, Dodge Viper, and SRT performance line.

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The auto industry's latest pricing battle mushroomed Tuesday when General Motors Corp. extended an employee discount offer to all consumers by a month and rivals Ford Motor Co. and Chrysler moved to match the deals on most models beginning today.

Under its Ford Family Plan, Ford will offer nonemployee customers pricing that equals about 5 percent below dealer invoice on nearly all 2005 models.

"Consumers made it pretty clear in the month of June that they wanted a clear plan for purchasing their cars," said David Reuter, a spokesman for Ford.

Beginning today, DaimlerChrysler AG's Chrysler Group will offer a similar plan it calls "Employee Pricing Plus," according to Chrysler spokesman Jason Vine.

Under the program, nearly all 2005 Chrysler, Jeep and Dodge models will be offered at roughly 5 percent below what dealers pay, said Kevin McCormick, another Chrysler spokesman.

Chrysler said last week that it would match GM's offer if it was extended, but did not provide details about its program.

While the deals are boosting short-term demand for new cars and trucks, and helping to lower inventories, analysts warn they will hurt profits and reduce sales in coming months by pulling demand forward.

The average industry discount jumped 10 percent last month to a record $3,269, according to Autodata Corp.

The latest discount programs at Chrysler and Ford, which is the only major automaker to post lower sales this year, came the same day that GM extended its wildly successful employee-pricing program for a month. The moves signal that the nation's No. 2 and No. 3 automakers are anxious not to lose ground to their crosstown rival.

GM's discount plan -- representing 3 percent to 4 percent below dealer invoice -- boosted its June sales by 47 percent and helped lift the overall new car and truck market 16 percent last month. The company's extended promotion excludes the Chevrolet Corvette, Pontiac GTO and GM's commercial pickups.

GM's employee-pricing program drove U.S. vehicle sales to an annualized selling rate of 17.53 million units, up sharply from a 15.41 million selling rate in June 2004, according to Autodata Corp. If sales continue at that pace for the remainder of the year, the U.S. auto industry would have its best year on record.

Mark Cornelius, president of Morgan & Co. Inc., an industry consulting firm in West Olive, Mich., said the bang in June from GM's program is likely to be lessened now that copycat deals are available.

"The pop is gone for GM," he said.

"I don't know that it will be as successful going forward."

Ford and Chrysler ended June with excess supplies of unsold cars and trucks, prompting them to match the GM offer.

Ford and Chrysler also are excluding some hot models, including the Lincoln LT pickup, and Ford Mustang, GT and Escape Hybrid models, as well as Ford's European brands.

At Chrysler, the employee discount does not apply to the Chrysler 300, Dodge Magnum, Dodge Charger, Dodge Sprinter van, Dodge Viper sports car, Jeep Liberty diesel and high-performance SRT models, McCormick said.

In addition, analysts expect Ford to cut third-quarter production and warn its profits will come under more pressure.

"GM's strategy is clearly not good news for Ford, which has been trying to maintain prices on new models such as the Five Hundred and Freestyle," Merrill Lynch analyst John Casesa said in a note to investors.

Ford's discount will be offered in addition to cash rebates available on many vehicles.

For instance, the two-wheel-drive Ford Escape XLT model now sells for $26,335. Under the new employee-pricing plan, that price falls to $23,335, and it drops again to $21,335 after a $2,000 cash rebate is added, Reuter said.

For July, Ford also lowered cash rebates on most models. The highest rebate now is $4,000 on the Explorer SUV and Freestar minivan, down from $5,000 in June.

Ford began notifying dealers about the promotion Tuesday and will kick off a major national TV, print and Internet marketing campaign today.

"We are going to advertise this program widely in a big, big way," Reuter said, describing the central logo of the campaign as a doormat reading "Ford Family Plan" with the Ford, Lincoln and Mercury brands displayed.

Ford dealers will receive window stickers that show the new Ford Family price compared with the original price.

Ford is downplaying concerns that matching GM's program will generate a pricing war.

"We have to do what's right for the customer, and the customer spoke pretty loudly in the month of June that they like a simple, clear and consistent message when it comes to pricing," Reuter said.

You can reach Eric Mayne at (313) 222-2443 or [email protected].

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261 Posts
yeah, discounts are so fine and good for employees, but why do people who make up to $50/ hr need such big discounts
while we poor folk get the run around at dealers, over an extra thousand off the sticker, which isn't going to ever hurt
the dealers at all.

· Registered
11,448 Posts
Discussion Starter · #3 ·
You'd actually be surprised how low dealer margins can be on the sale of cars - services tends to be most of the revenue.

This deal applied to everyone though (and isn't active anymore, of course), so I'm not sure where you're coming from with this?

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311 Posts
$50/hr? Where do you get that from? Most salesmen get $50 per car no matter how much it sells for!!! By the time all the labor for service/paper work/interest on floor plan is figured into the deal, the dealership might get ~$500. Even on a $20000 car, it's only 5% profit. That's a HORRIBLE profit percentage. Service and parts are the only departments that a dealership has to make money. How'd you like people hammering you for every penny you make? People think they're entitled to cars....

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261 Posts
$50/hr? Where do you get that from? Most salesmen get $50 per car no matter how much it sells for!!! By the time all the labor for service/paper work/interest on floor plan is figured into the deal, the dealership might get ~$500. Even on a $20000 car, it's only 5% profit. That's a HORRIBLE profit percentage. Service and parts are the only departments that a dealership has to make money. How'd you like people hammering you for every penny you make? People think they're entitled to cars....

dude I am not talking about the dealers, I am referring to EMPLOYEE's of the Ford companies, Factories
not salespeople, entitled, dude lay off. no I work for my cars and for the money to pay fro them
like under $12/hr, entitled my ass, not like Ford employees, and GM & Chrysler, I know too many people that
work for Ford & GM and do nothing but sit in a room all day getting paid because they have no work.

and why shouldn't cars be affordable for everyone, or do you say not everyone deserves, or needs one?, only you?

Hammer away bubba..... I know how I earn my money, and it's not for nothing.

I also know that not every dealer is considered EMPLOYEES
I work for A Chevy dealer and no one there or in a bunch of ones I know are entitled to EMPLOYEE Discount,
No shit dealers don't make much money, but I've asked around and they make enough (dealers not salesmen)
to compensate, hell what they pay for the cars isn't even listed on the sticker, I am inside a dealer so I know
and yes too I know that Service, Body Shops & Parts are the most income.

the guy I bought my Fusion from had to use his DAD's employee status to get me a deal.

where do you get off saying that "eh everyone thinks their entitled a car, blah, blah"
NO!!! but some of them don't need to be so much damn money do they?

I live in Michigan and all I see are "EMPLOYEE" discount commercials and I am sick of it, they know that they get it why
do they need commercials to rub it in?

not everyone is freaking rich to afford HUMMERS, or alot to even afford a damn Chevy AVEO.
I used to live in Delaware and no such commercials aired, even with Ford, GM & Chrysler plants in and around the area.
I don't care about the Employees, and apparently neithe do the companies they work for, instead of paying non working people
to sit in a room all day making way too much money, they could have paid everyone else and kept them instead of
closing plants down all over the place, and yes living outside of Dearborn, MI I hear more news reported about the car companies
than the rest of the country knows. Like instead of retooling the Atlanta plant to make Fusions, they shut it down after
the Taurus ends, to pay Mexicans less money in Hermosillo to make the Fusion, I ask why?

entitled to cars NO!!!!!!, people who work for Ford even though they make too much money ENTITLED to jobs
HELL YES!!!!!!! how in the heck on earth could you even think I was referring to dealers,
stating the "EMPLOYEE DISCOUNT" thing, if you're not sure what someone is saying do not come off like you did....

I agree with the discounts for all every once in a while, it's only right, and I know that dealers don't make that much, but it's enough
that the sticker price can be dropped from time to time, and seeing as how they only get so much anyway, what are they losing?

the companies themselves aren't losing much, some options are way to high anyway.

and as far as I remember I am ENTITLED to my opinion, this is my opinion as well as some fact.
after all I am a free man living in the USA. HAMMER AWAY....

· Registered
261 Posts
dude get over it, you don't even get what my point is, so leave it alone.
and I do get an employee discount at JC what ever!!.
besides if you don't get what I am trying to say don't bother replying. because appearently ya don't.

question: where did I say anywhere that I demand an employee discount?

I don't believe I ever did, so get over it.
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