GM’s New Plan

The cash for clunkers program is tapped out, but that’s not keeping General Motors from offering customers a buying incentive.  The automaker is counting on its new Satisfaction Guarantee Program to get customers back into showrooms.

Under the program, customers can return their new vehicle within 60 days of buying it, but the deal is void if the vehicle has more than 4,000 miles.  For customers who aren’t interested in the program, they can get a $500 cash incentive toward the new car they’re buying.

In Mississippi, there are about 70 G.M. dealerships.  Jim Harreld, president of Harreld Chevrolet Company in Canton, says the new plan will be good for business.

At the dealer meetings, a lot of dealers have asked - I’ve been one of them - ‘Why don’t we do more to sell against the competition?“ he said.

Harreld inherited the dealership from his father, who inherited it from his father in 1932.

Like many car dealerships, they’ve been hurt by the bad economy and have cut back overtime and haven’t filled vacant positions.

Cash for clunkers improved sales.  The federal government compensated the dealership for all but two transactions.  Nationwide, the government says it’s reimbursed dealers for about 70% of the cars sold under the program.  Transportation Secretary Ray LaHood says 478,000 car vouchers have been paid, which cost about $2.5 billion. 

“We’re feeling better now than we have in a long time,“ said Herrald.

He says G.M. is putting their money where their mouth is.