General Motors is studying a new marketing or incentive program to address slumping consumer confidence, but the automaker's top sales executive says GM won't copy Hyundai's Assurance program.
Meanwhile, GM might not advertise its traditional March Madness sale.
GM has examined the Hyundai program but wants to offer something more "consumer friendly," Mark LaNeve, GM's vice president of North American sales, service and marketing, said today in a call with analysts and reporters.
"We've looked at Hyundai's program extensively, and we've examined some possibilities of what we might do because certainly the consumer is anxious and worried about the future and whether or not they will retain their job," LaNeve said.
"We're not crazy about the Hyundai program because all it does is protect your credit from being wrecked. You've still got to turn in your car. And when you lose your job, you still need a car to find another job."
Hyundai's Assurance plan, launched in January, allows buyers to return any new Hyundai vehicle leased or financed in 2009 if they lose their jobs within the first year of ownership. Hyundai also will make the vehicle payments for 90 days.
Some experts say the Assurance plan is responsible for Hyundai's sales rising 14.3 percent in January. Hyundai today said it posted a 0.7 percent sales decline for February -- which was the second-best U.S. sales performance of the month behind Subaru.
LaNeve said the idea behind Hyundai's program is promising. But GM is studying how much of Hyundai's January sales increase was attributable to Assurance or the result of high inventory of 2008 models that carry a lot of incentive money.
"That said, we think there's something there that addresses consumer confidence, and that's the area we're looking at: Can we do something that addresses consumer confidence?" said Pete Ternes, a GM spokesman.
"We aren't interested in following Hyundai's Assurance program exactly because we're not sure how effective it really is."
+ Feb.2009 Incentives: Chrysler Spents $5,566 per Vehicle
+ Feb.2009 Auto Sales: Ford Plunge 48%
+ Feb.2009 Auto Sales: GM Plunge 53%
+ Feb.2009 Auto Sales: GM,Ford Lead U.S. Sales Plunged 41.3%
+ Feb.2009 Auto Sales: GM Canada Faced Tough Incentive Competition
+ Feb.2009 Auto Sales: Volvo North America Rises 15%
+ Feb.2009 Auto Sales: Japan Sales Plunged 32.4%
+ Jan. 2009 Auto Sales: Japan Sales Plunge to Lowest in 37 Years
+ Jan. 2009 Auto Sales: Surprise! Hyundai Sales Rise 14.3%
+ Jan. 2009 Auto Sales: BMW Better Thank Industry Average
+ Jan. 2009 Auto Sales: Chrysler/GM/Ford Lead Fourth 30% Monthly Drop
+ Jan. 2009 Auto Sales: French Car Sales Drop Further In the meantime, GM plans to carry over the Presidents Day sales incentives from February into March, Ternes said. GM will use the TV time it bought during the NCAA basketball tournament to promote its product message more than a sale, he said.
Ternes hinted that there might not be a separate March Madness promotion this year.
"I don't know how much we'll tailor something toward March Madness. We're using the air space to advertise our current incentive program," Ternes said. "But we want to close the perception gap."
Ternes said GM's ads will feature a specific product or group of products in the messaging more so than the deal.
