Ford, Chrysler, and GM Offer Employee Discounts to Customers, Boosting Sales

Strategic Insights -

The big three US automakers have joined forces to boost sales, offering employee discounts to customers. Ford Motor Co. and Chrysler have followed in the footsteps of General Motors Corp., which introduced the discount program in June. The promotion allows customers to buy new vehicles at the same discounted rates that employees receive, driving sales to their highest total in nearly 19 years.

Key Takeaways:

  • General Motors Corp. saw a huge sales surge last month, thanks to the heavily promoted discount program, which drove monthly sales to their highest total in nearly 19 years.
  • Ford Motor Co. has announced its "Ford Family Plan," which allows all customers to buy most of its 2005 models at the employee rate starting from Wednesday.
  • The promotion excludes the Ford Mustang, GT, and the Escape hybrid, and will run through Aug. 1.
  • Chrysler has also matched the program and will offer the same discount to customers.
  • The discount program has been set to expire on Aug. 1, but it's possible that it may be extended.
  • Ford Motor Co. has excluded the Ford Mustang, GT, and the Escape hybrid from the promotion.
  • The promotion has been designed to boost sales and create a sense of urgency among customers.
  • The move has been seen as a strategic effort to increase sales and market share.

Statistics:

  • Monthly sales for General Motors Corp. in June reached nearly 19-year highs.
  • The sales surge was driven by the heavily promoted discount program.
  • The program allowed customers to buy new vehicles at the same discounted rates that employees receive.
  • The promotion has been offered by General Motors Corp. since June 1 and will expire on Aug. 1.
  • Ford Motor Co. has announced a similar promotion, known as the "Ford Family Plan," which will offer customers discounted rates on most of its 2005 models.
  • The promotion will start on Wednesday and will expire on Aug. 1.
  • Chrysler has also matched the program and will offer the same discount to customers.

Sources:

  • General Motors Corp.
  • Ford Motor Co.
  • Chrysler.
  • Associated Press.