An overstock of new cars has prompted General Motors to offer larger rebates and other incentives in Canada than in the United States. The latest ploy? An employee pricing scheme that applies to most of the automaker's higher volume models.
The offer started up on Monday and will last until December 30, Automotive News reports.
The employee pricing deal applies to 2012 Chevrolet Sonic and Cruze models, as well as most of the automaker's higher-volume 2013 offerings. Only some of its lower-volume and new-for-2013 models are excluded, including the Chevrolet Camaro, Corvette, Express, Orlando, Spark, Traverse and Trax, plus the GMC Savanah and Acadia, the Buick Enclave and Encore and the Cadillac ATS and XTS.
While that doesn't sound like it leaves many GM products, high-volume units like the Chevrolet Cruze, Malibu and Impala all qualify for the deal.
But the biggest spiffs - about $5,000 - are being offered on the company's pickup trucks, even though they don't face the same ovestock problem in Canada as they do south of the border in the U.S. With just 27 days' supply, the number of Chevrolet Silverado and GMC Sierra trucks sitting on dealer lots waiting for new owners about half of the segment average in the U.S. and about one fifth of the nearly 140 day supply GM faces here.
Anticipating heavy demand ahead of its plan to temporarily idle and retool its truck plants ahead of all-new models set to go on sale in the middle of 2013, GM built up an overstock of trucks. What the automaker didn't count on, however, was how quickly it sold out of leftover 2012 models. While Ford and Ram were offering big spiffs to clear out their leftover 2012s in October and November, GM was stuck with lots of mildly-discounted 2013s. The result was a 138 day supply of trucks in the U.S., the highest level of leftover pickups the automaker has seen since before its bankruptcy in 2009.