In an effort to curtail its falling sales and get sitting vehicles off of dealership lots, General Motors has reportedly instigated a new incentive program for dealers that awards them 1% of a sold model's 2009 MSRP.
According to a report by Bloomberg that cites three sources close to the matter, GM will pay the cash incentive six months after a 2009 vehicle is sold. Say, for example, a dealer sells a brand-new GMC Sierra pickup. The franchise will get a payment of $166 determined by the truck's MSRP of $16,623. If a '09 Hummer H2 SUT with a base price of $54,940 moves off the lot, a check for $549 will arrive in the mail. If sales happen to pick up as a result, dealerships could expect some generous bonuses courtesy of the General. The program is expected to run to the end of the calendar year in order to make room for more 2009 and future 2010 models.
Last month, GM posted a 16% drop in sales compared to the same time last year and according to the most recent Automotive News tally, has a 64-day supply of vehicles at its roughly 6,500 U.S. dealerships.
Source: Bloomberg