General Motors to end its “employee discounts for everyone” scheme

General Motors to end its “employee discounts for everyone” scheme

General Motors has announced that it will not be continuing the hugely successful “employee discounts for everyone” scheme that resulted in record sales for the company last month. The scheme is scheduled to end this month and from august 1, the discounts would no longer be available to anyone planning to purchase a GM vehicle from the showrooms of the company.

However, the company has better plans for the future as they would now be introducing a new pricing scheme for the year 2006. The company now plans to focus on permanently low prices of their vehicles instead of luring customers by announcing big discounts. However, the competition in the form of Ford and Chrysler has not revealed their future strategies.

The company informed a media source that the discount program has been so successful that they are running short of supplies as the vehicles are practically flying off the showrooms. They do not have enough stock to continue the scheme even if they want to continue with the scheme. The company would instead be considering continuing the no-haggle pricing into its selling strategy.

General motors has till now kept their initial prices of the vehicles high with later offers of discounts to bring in customers. The company also announced plans to stem a loss of $2.5 billion in its North American auto operations in the first half of 2005.