GM announces 72 Hour Sale on 2008 models, 3.5% Price Increase for ’09s

Facemasks on? Heeeeeeeeeeeeeeere we go!

By David Surace
06.23.2008

The Automotive News article landed in my inbox with an ALERT!, which I guess is the internet equivalent to a THUD!

Let’s start off with a small piece of news which was found buried at the bottom of the piece: adding fuel to the already heated rumors that the HUMMER brand is walking the plank, GM’s Mark LaNeve told dealers in a teleconference today that megafinancial group Citibank has been hired to help review GM’s options with HUMMER, the original review of which had been set forth by Rick Wagoner on June 3rd.

Now, onto the headline: GM also told its dealer network that prices are going up 3.5% across the board starting with ’09 models. That’s the proverbial stick. What’s the carrot?

For the vast majority of ’08s sitting on dealer lots, starting June 24th (that’s tomorrow, people) they’re offering 0% financing for 72 months on selected models at Buick-Pontiac-GMC, Chevrolet, SAAB and Cadillac (with a couple exceptions we’ll discuss after the jump).

In another twist, GM will also offer $500 cash to customers who buy, rather than lease, their vehicles.

The full extent of ’08 nameplates being offered up for the incentive isn’t known just yet, though LaNeve indicated it would encompass roughly 80% of that model year’s vehicles, the exceptions being vehicles which are already in short supply. In other words, expect it to be heavy with Lambda crossovers and also SUVs, especially of the GMT-900 variety.

The premium brands will also get into the act, with the now beleaguered HUMMER H2 and H3 models (of course), and the SAAB 9-3 and 9-7X models (apparently the 9-5 was left out).

Cadillac will offer the 0%/72-month financing on all vehicles except for the new CTS, but fear not, it’ll only get 0% APR for 36 months instead, a comparative slap on the wrist for its popularity. On the other hand, the Escalade gets $1000 on the hood on top of the sweet financing.

COPYRIGHT Autosavant.net – All Rights Reserved

Author: Chris Haak

Chris is Autosavant's Managing Editor. He has a lifelong love of everything automotive, having grown up as the son of a car dealer. A married father of two sons, Chris is also in the process of indoctrinating them into the world of cars and trucks.

Share This Post On

6 Comments

  1. GM would not be hiring Citibank’s investment bankers to work on a re-branding plan or technology to make Hummers get better gas mileage. There is only one reason to hire them and that is because a sale is being planned and being planned in the very near future. You can kiss Hummer goodbye from the GM house of brands.

  2. Agreed, market hawk.

    One thing that really aggravates me about this news is that they are increasing incentives at the same time they are raising prices. Yes, we’re talking about two different model years, but it sure sounds like the old GM, of unrealistic MSRPs coupled with huge incentives.

    So much for value pricing.

    From a potental buyer’s standpoint, it’s too bad the CTS isn’t getting 0% for 60. THAT would be a nice deal. 🙂

  3. Zzzzzzzzzz… Who even considers buying GM products anyhow. I got tired of my incompetent dealer service when I gave up on GM 6 years ago. Live by the SUV, die by the SUV.

  4. two vehicles stick out at me as potential good buys in this scenario: the saab 9-3 and the cadillac srx.

    both really good vehicles. way underrated by the press. sneak away with one and be happy.

  5. boy, this is looking pretty bad for GM. and i agree about hummer, you can wave goodbye to that brand. it’s a pretty good bet the chinese will end up with that and get a dealer network in the US in the deal.

  6. How mcuh do you want to bet that doesn’t get them the sales they’re looking for?

Submit a Comment

Your email address will not be published.