The GM Giant Ranks in the Top 5 Dealers in the Baltimore Washington Sales Area

I have to say that the past several months have been the most stressful in my life. The beginning of the recession that the government just recently figured out was happening, started for our industry in September of 2007. Being in a market where truck sales lead all other segments, a slowing housing market took its toll early. Then gasoline prices rose and the truck and SUV sales slowed even more. This is when the talking heads on television started saying that GM didn’t build cars and trucks people really wanted. The truth is people wanted GM cars and trucks, but the cost of fuel and the lack of credit availability brought US auto sales just about to a halt. And if this wasn’t enough, used car sales slowed as did the number of people coming to dealership service departments, as consumers put off maintenance on cars and trucks. Just when we thought things couldn’t get worse, the executives of the big three domestic automakers flew to Washington in their Corporate jets and begged for money, admitting that without it they would fall into bankruptcy. While many in Congress said this would be good for the automakers, the auto executives told Congress that customers wouldn’t buy cars and trucks from a bankrupt manufacturer.

Well, from my experience this is certainly true. As soon as the dreaded B word was uttered, our show rooms and lots began to resemble a football stadium one hour after the game is over. There are cars in the parking lot, the employees are working but the customers are long gone. With the notion that GM, Ford and Chrysler could go out of business, customers made it clear they were afraid to buy our products.

In early December, Congress indicated that it would be passing legislation that would give US automakers the money they needed, only to have the bill killed in a partisan effort to punish the UAW for its support of the Democratic Party. Now you may not agree with this statement, but many independent analysts have come to this very conclusion. At any rate, the death sentence handed down by Congress may as well have been the beginning of an epitaph for the U.S. Auto Industry.

Within one day of the defeat of the Senate bill to help the ailing U.S. auto industry, President Bush announced that “to allow this industry to fail would be an irresponsible act”, and that he and the treasury department stood ready to help. Here is where the local story takes over, and I am pleased and humbled to tell it.

After Congress made their vote, I stayed up late writing to every Senator who had voted against the bridge loan bill. I stayed home the next day and tried to contemplate what could happen. Then I got a call from my sales manager, Phil Roath. He said, “Lee, you’re not going to believe this but we’ve sold 6 cars today and it’s only two o’clock.” That night I went to a large birthday party for a friend. One after another people came to me expressing support for our industry, for our company and for me. The next day brought more sales and a renewed spirit of hope for a good month of sales. At the end of the week the sales report from GM showed our dealership amazingly ranked number 2 out of 134 dealers in the Baltimore Washington Sales Area and solidly in first place on the shore.

I am overwhelmed by the support of our customers in this most uncertain time in our industry and in our economy. While it is true that the discounts offered on new GM cars and trucks are at an all time high, and late model used car and truck prices are at an all time low when adjusted for inflation, it still takes consumer confidence to pull the trigger and spend money. I am grateful to all who continue to have faith in our company and our products. I am happy to report that we remain in the top 5 dealers in the metro sales area. Have a happy holiday and a blessed new year. Drive safely.

The Republicans Failure to Help GM May Be Their Attempt to End Unionism and Its Support of the Democratic Party

Someone asked me this week who writes these articles for me. My sister Sharon has a Bachelors degree in journalism and a master’s degree in international business and national defense, so one might think I have her pen the “Did You Know Articles”. If I did they would probably be written better but the truth is that I spend a few hours each week researching the material and writing the articles. But this week I am going to cheat.

In reading an article by Ed Wallace in the December 15th edition of Business Week Magazine, I felt I couldn’t express the material any better. The following are excerpts from the article titled Senators Carping about Tax Subsidies Can Look in Their Own Back Yard:

In the ongoing power struggle between Republicans and Democrats, Detroit is the latest, and possibly the bloodiest, battleground. And because it is a battle of ideologies with no apparent connection to pragmatic economic reality, the matter of whether the U.S. auto industry survives takes a backseat to which party gets its way.

That's because the two parties see the fate of Detroit as a watershed moment, the kind of event that could potentially redraw the political landscape forever. By refusing to bail out General Motors and Chrysler, Republicans see a way to end the last vestiges of unionism in America and the unions' longtime backing of the Democratic Party.

How can that be? Simple party politics. Because if these individuals bring down the American economy by destroying Detroit, they'll simply walk away from the disaster saying "It was the other guy's fault."

Somewhere along the way this debate seems to have overlooked the fact that Detroit, for all its blunders, is still a viable economic engine, providing jobs to millions and creating some of the world's best cars. For example, the best-selling vehicle in America, even in this downturn, is still Ford's F-Series truck, and second place goes to the Chevrolet Silverado, while sales of the Toyota Prius are down substantially with the fall-off in gasoline prices.

What's amazing is that Senator Richard Shelby (R-Ala.) is such a huge critic of using taxpayer money to bail out Detroit. Amazing because the State of Alabama has provided hundreds of millions of taxpayer dollars to lure foreign auto companies to build factories on its soil. These were considered wise investments because the promise was that they would create more jobs for the chronically underpaid Alabama workforce. However, in the summer of 2003, Mercedes brought in Polish workers on questionable B-1 work visas to expand the factory because they could be paid far less than the local workforce.

The reality is that there's no end to the tax largesse handed out to some of the most successful car companies in the world. And you know their names: Volkswagen, Toyota, Honda, Nissan, Hyundai, Kia, Mercedes-Benz, and BMW.

Other industrialized countries around the world will be stepping in to ensure that their own automobile industries will still be working when whatever financial downturn we are looking at is finally over. As for Congress, shame on you for playing politics when so many jobs and, in many ways, the future of American manufacturing is at stake.

To read this article in its entirety, click here. From everyone at Bob Smith Automotive Group, the GM GIANT and Giant GMC, have a happy holiday. Drive Safely!

You Can Buy a $34,000 Truck at a Cost to You of Under $14,000

It sounds impossible that you could buy a $34,000 truck for under $14,000, but in a way you can. Let’s say you own a business and need a truck. You pick out a Chevy Silverado that lists for about $34,000. Now that’s a pretty nice truck, probably 4 wheel drive and in a 4 door crew cab that would work nicely for your business. If you buy on the GM Red Tag program, you could get $10,000 or more in savings, leaving you a balance of $24,000. The recent stimulus package passed by congress allows you to take up to $25,000 in depreciation on up to $100,000 in vehicle purchases. If you are a C corporation paying 34% federal tax and 8% state tax that is a total of 42%. $24,000 in depreciation reduces your taxable income by the same amount, and at a 42% tax rate your tax savings is $10,080 making the net to you $13,920. In addition to that you would get a free tool box or bed liner. And if you qualify for other incentives your cost could be even less.

These are extraordinary times offering extraordinary deals. We almost need a score card to keep up with the incentives. There are incentives if you have a leased vehicle and don’t lease your next one. There are loyalty incentives and other incentives called conquest if you don’t have a GM product. There are incentives if you live in certain markets and others if you are a member of a club or organization that GM has a deal with. There are even more incentives if you have qualified for a predetermined demographic that GM has targeted and sent you a promotional piece in the mail. There are incentives if we have had the vehicle in stock too long and others if it is a brand new model. On some models you can get free service, OnStar and XM radio. You have GM credit card rebates and some business can get a $500 gift coupon from Lowes. Plus, the best darn military discount- for active duty and reserve members of the US military. There are so many different incentives that if I listed them all I wouldn’t have room in this article. And then there are the tax incentives from the government like I mentioned at the top of the article.

If you are a GM employee, a direct relative of a GM employee, a GM dealership employee or a direct relative of a GM dealership employee, you qualify for GM employee pricing on top of all of the Red Tag incentives. I have seen these deals come out to almost half off the sticker price.

I have been in the car business for 30 years, and I have never seen anything like this. And if you think the new car savings are good, you should see what you can buy a used late model car for. As the factory has put incentives on new cars, it has driven the price of off lease and rental used vehicles to record lows. And it doesn’t end here.

For all you have heard about financing, now some of the banks are competing for the car business. That has driven bank rates on car loans down for qualified buyers. And while you have to have good credit, it doesn’t have to be perfect.

While these may be tough economic times, there has never been a better time to buy a new or used car or truck. To see the basic Red Tag savings for yourself, log on to www.gmgiant.com. But remember you may qualify for even more. Drive safely.

The Local Car Dealer Is a Car Manufacturer’s Greatest Asset

The big question this week on the news is “should GM be forced into bankruptcy?” While this may seem to be GM’s best bet to get a better labor contract, absent from the discussion is the affect it would have on dealers. Many people don’t recognize that dealers are independent businesses that put their own capital at risk. The following is part of a response to an article in the Washington Post:

NADA Letter
The Nov. 20 editorial “Detroit at the Brink” makes some good points about the Detroit Three’s current predicament. But to group the dealership network in the same sentence as executive salaries and labor costs is just plain wrong. It is not the number of dealerships that General Motors, Ford or Chrysler have that is forcing them to seek government loans to weather the current global credit crisis.

What’s not widely known is that dealers are independent business men and women who invest millions of dollars of their own money in land, buildings, improvements, personnel and advanced tech equipment to sell and service vehicles. It is the dealer who buys the vehicles and the parts from an automaker in the first place. Without the revenue that dealers provide to their automakers, the factory assembly lines would screech to a halt. Dealers pay their manufacturer for just about everything, even including the signs out in front of their stores.

Moreover, we should not be too quick to want to arbitrarily lower the number of dealers that any manufacturer has. Beyond creating good jobs for over a million Americans – jobs that cannot be sent overseas – dealers also provide great value to consumers in terms of competition and convenience, not to mention their charitable and other contributions to the community. If there is an overabundance of dealers, the market will address it, as it has over the past 60 years when we have seen market forces reduce the number of dealers from 50,000 to the 19,700 we have today.

So, the question is not whether the domestic dealer network is overgrown. The question is whether dealers are a cost center to the automakers. And they are not. In fact, the dealer network is the manufacturers’ greatest asset, providing customers with convenient and competitive sales, service and financing. And this is all done at minimal cost to the manufacturers. Dealers represent almost 20% of all retail sales in this country. It is their recovery – not their demise – that is essential to the survival of the overall U.S. economy.

ANNETTE SYKORA
Chairman
National Automobile Dealers Association

GM’s Failure Would Send the Country into a Depression

By now you are probably tired of hearing about the US automakers asking the government for a loan. I get asked by friends, what really happens if GM fails? The simple truth is that a failure of GM is just not an option. Let’s examine some facts, many of which you won’t hear in the media because it isn’t a fit with the story line. Most of us including me, feel that the labor union and past GM executive decisions put GM and the rest of the domestic automakers in a weak competitive position. We see the current situation as an opportunity to break the union contracts. It is a position of power over the union and GM brass we have never experienced before. We want retribution on the automotive executives that made us accept inferior products like the Citation and the Granada. But are these really the guys we should be angry with?

Rick Wagoner, the chairman of GM, along with Vice Chairman Bob Lutz, President and Chief Operating Officer Fritz Henderson, and Mark LaNeve, Executive Vice President Vehicle Sales Service and Marketing North American Operations and cousin of local Little League World Series Coach Tom LaNeve, are the ones responsible for GM’s recent turn-around in product design and quality. GM’s vehicles have quality ratings equal to or exceeding the imports. They lead more segments in fuel economy than any other manufacturer. GM’s service satisfaction scores beat every manufacturer except Porsche. GM is still the leader in vehicle sales in the U.S. and is in a virtual tie with Toyota for world vehicle sales leadership. GM is the leader in hybrid technology, fuel cell technology and will be the first to bring a plug in electric car to market in about 18 months with the Chevy Volt.

GM’s problems began with labor contracts signed decades ago, not with recent contracts signed by current leadership. It is GM’s legacy costs that make their cost per vehicle higher than the imports. Those costs are being phased out in the current contract negotiated by the current leadership team, and will begin to pay off in 2 years as the retirement health care costs are being assumed by the union. GM’s need to ask the government for loans was triggered by the collapse of the banking industry. Without cash to sustain them through the recession, they cannot pay their workers, vendors and dealers. Dealerships are independent businesses with their own capital at risk. When a dealer sells a car with a big rebate, they have to wait for their money from GM to be made whole in the deal.

GM’s car and truck prices when adjusted for inflation as a percent of family income and when you consider product content are the best since WWII. If people don’t buy these incredible vehicles at these ridiculously low prices, and if GM doesn’t get the financing it needs, it will kill the entire US auto industry taking Ford, Chrysler and many of the imports’ US assembly plants with them. GM’s suppliers who also supply the other manufacturers that build cars in the US will not be able to survive without GM’s business. GM’s 6,000 dealers will close or become used car lots. These dealers often are the pillars of their communities donating hundreds of thousands of dollars to local charities. Those donations go away along with the 1,000,000 jobs they provide in the US. Businesses that rely on dealerships for revenue will loose jobs or close. The center for automotive research estimates the job loss in the first year after a GM failure to be 4,500,000. And that is just the beginning. Some estimates reach 13,000,000 jobs lost within 2 years. The failure of the US auto industry is simply not an option we can afford.

My advice is to support the government loans to GM and take advantage of the incredible prices by purchasing GM cars and trucks. Businesses even qualify for a $25,000 deduction in their 08 taxes for purchasing certain trucks, SUV’s and crossovers. If you have a job and want a new car or truck, you can help yourself and help the economy by purchasing a new American car or truck. Tell your Congressman and Senators you want them to help save the US auto industry that is responsible for the employment of 1 in 10 Americans. For more information and to see how you can contact your Senators and Congressman log onto www.gmfactsandfiction.com. Pray for our auto industry and our economy.

On behalf of everyone at the Bob Smith Automotive Group - the GM Giant and Giant GMC – and Giant Fishing Charters, Happy Thanksgiving! Drive safely.

Is GM Going To Buy Chrysler?

I don’t think I have heard so much buzz in our industry as I have since the news leaked of this potential deal. Why in the world would GM want Chrysler? One potential outcome would be if GM only purchases the manufacturing assets and intellectual capital. This is how they bought Daewoo. That would allow them to combine the Chrysler products they want to keep manufacturing and sell them through their existing GM dealerships. This would be troublesome though because it would affect the current Chrysler franchise holders.

GM’s purchase of Chrysler would also give them more access to an additional 3 billion dollars in government loan guarantees for research in alternative fuel vehicles. Remember, GM partnered with Chrysler in the development of the 2 stage hybrid used in the Tahoe and Yukon. The Chrysler deal will most likely include GM selling Cerberus Capital the rest of GMAC. Cerberus owns 51% of GMAC and about 80% of Chrysler.

Of course, GM could purchase all of Chrysler’s assets much like Ford did with Volvo, and continue to operate the way it is. They could create some economies of scale making both companies more efficient. All of this is Monday morning quarterbacking on my part, since I have no input or insider knowledge. Drive Safely.

The GM Giant And Giant GMC Are Holding A Used Car And Truck Auction!

The success of the GM Employee Pricing for Everyone sale has caused both of Bob Smith Automotive Group’s dealerships to be over-stocked with used inventory. Soon we will be starting our year end events and currently GM’s incentives are equal to the Employee pricing on many of our most popular models. We must sell the used inventory to make room for the trades coming in November and December.

With the economy as tough as it is, we decided to hold a sale and auction. Here is how it works: We will post our inventory on our web page at www.gmgiant.com and www.giantgmc.com as well as in our print ads in the Star Democrat. We will give a “buy it now” price and give you the opportunity to make a bid. The bids can be made at our office, or you can place a bid online. If you wish to have us arrange financing in advance we will. All finance arrangements must be complete by October 31st. Our online auction is being done through a link with E-Bay. At noon on Saturday November 1st we will compare the in dealership bids to the online bids and declare who the purchaser is. We will reserve the option to accept any price at our discretion before November 1st.

I am not aware of anyone else trying anything like this. It is our effort to liquidate all used inventory by November 1st. This offers the consumer a real bargain on some of the cleanest used inventory in Maryland. The sale is going on now so don’t miss it.

You Can Order Your 2010 Chevy Camaro Today!

GM has just announced the early order program for Chevy Camaro? Yes, you can order a 2010 Camaro today and take delivery in the spring of 2009. GM is doing this in their words, “to get the launch right.” Often when a new model comes out, the factory speculates on the popularity of certain options, only to learn that they have guessed wrong. By taking early orders, GM can learn what the customers want in theses early orders and use this information to get the mix right. This will allow them to negotiate the supply of the most popular options with their vendors well in advance of the full run of the production line.

The Camaro concept car has been the hit of the auto show circuit for the past year, and the production model shown at the most recent shows has enjoyed even more popularity. The legendary Camaro is back with technology not even dreamed of in the early days of this high performance legend. Being the first one on your block to have the new Camaro is sure to tempt auto enthusiasts around the globe.

But this Camaro is not only a street burner, it is a gasoline sipper. And with a starting price of $22,995 it will fit the thriftiest of car enthusiast’s pocketbooks. The direct injected V6 engine with variable valve timing, boasts and impressive 300 horsepower while achieving an amazing 26 mpg on the highway, when teamed with the 6 speed automatic transmission with the tap to shift feature. The V6 is standard on the LT and LS models and also can be mated to a 6 speed manual shift transmission.

As if 300 horsepower isn’t enough, the Camaro SS version will be powered with a 6.2 Liter V8 engine that churns up 422 horsepower, 4 wheel disc brakes will stop this rocket, and GM’s StabiliTrack system will keep it on the road in high speed turns.

The all new Camaro will offer blue tooth technology and OnStar to keep you safe and sound. But probably the most appealing feature is the appearance. This car gets your automotive juices flowing as soon as you look at it. If you like to drive fast, or look like you are going fast just sitting still, the new Camaro could be your next vehicle. Order yours today and drive safely. For more information on the 2010 Camaro log on the www.gmgiant.com.

GM is Coming Back!

There is an axiom in the automobile business that says the best time to gain market share is in a down market. The reason for this is that when the economy is down, consumers are much more cautious with their spending, and purchase more out of need than emotion. It takes fewer sales to move the needle as the denominator in the equation is smaller. The trend is that once you gain market share in a down market, it is easier to retain it when the market heats up.

In each of the past three recessions since the 70’s the imports have gained market share only to retain it moving forward. In the 70’s the imports were cheaper. In the 80’s the quality story kicked in as the imports had fewer defects per thousand cars built than did the domestics. In the 90’s the imports dominated the fuel economy story and although they had become a bit more pricey than the domestics, offered new styling and good value.

Back in the 90’s GM decided to hire the best designers and engineers in the world, and go on a mission to build the best cars and trucks in the world. In spite of a lot of bumps in the road GM has done it, and the world is just now beginning to figure it out. While this was happening, Toyota began to learn what it is like to play in the same league as GM, and is now suffering from some of the diseases that plagued GM.

Toyota has suffered from class action law suits for engine sludge, frame rust through problems with Tacoma and more recalls than vehicle sales. Toyota’s service satisfaction scores are way below industry average while all of GM’s brands are way above industry average. And the flagship Camry V6 is no longer a recommended buy on Consumer Reports.

GM now is the fuel economy leader in more segments than any other manufacturer with the most models that get over 30 MPG highway. The 37 mpg Cobalt, and 33 mpg Malibu Hybrid prove that you can get great fuel economy without having to sacrifice room. GM had 29% market share in September, the highest in almost a decade and new offerings in the 09 model run will continue that growth. GM’s crossovers are dominating the industry and the new Chevy Traverse will be a market leader.

Chevrolet alone is on track to pass Toyota by year end as the best selling brand in America. The Chevy Silverado will absolutely smoke the Ford F150 in sales and the ashes will cover the also ran Tundra. Chrysler is going to build the trucks for Nissan because the truck they built didn’t sell and VW is asking Chrysler to build their vans. GM will sell over 9 million vehicles world wide and if GM was allowed to compete in Japan, the race for #1 in the world wouldn’t even be close. GM is still expected to win this year.

GM is back because of world class styling, quality and fuel economy. What is best is that it is an American company. And I might add that the Chevy Volt, the first mass production plug in hybrid will change the auto industry for ever, doing for GM what the Prius did for Toyota times 10. Folks, the economy may be bad, but GM is back and will dominate the automotive world once again. Drive safely.

Toyota’s September Sales Decline is one of the Worst in Their History in the US

GM’s Sales Were Way Ahead of All Manufacturers While Japanese Brands Plummeted

Part of the sad commentary of this economy is when you measure sales success by whose sales went down the least. Toyota’s sales were off 32.3% in September while “GM’s sales decline of 15.6% easily outpaced the rest of the industry,” according to Automotive News release on October 1, 2008. In fact all Asian brands were way off as the US economy has faltered. Honda sales were off 24% while Nissan was down 37%. Toyota said September sales results are the worst since June of 1987. Even Kia, down 27.8%, Mazda down 35.6%, and BMW and Mini down 25.7% all blamed the US economy for sluggish sales.

In my research for GM’s 100th anniversary, I discovered that GM was largely responsible for the US manufacturing support of the US and the Allies in World War II. GM built aircraft, tanks and trucks for the war effort. In fact GM’s planes and tanks were instrumental in the Allies victory in WWII.

Today GM is in a different war with Japan and Germany. Asian and European cars have for the first time in history, dominated the US Market. Just this year, American car companies gave the imports the lead in vehicle sales. It is hard for me to imagine that the same country that rallied to defeat these countries have now taken to favoring their products to those built by the same companies that helped the Allies and the US win World War II.

But the US auto industry brought this pain on in the 80’s by putting short term profit and huge labor contracts above quality and styling. GM has renegotiated these labor contracts and focused on quality and styling. Today, GM is fighting this war against the Asians and Germans with the same determination they did during World War II. But today it is a war for consumer dollars. GM’s cars and trucks are rated as good as or better than anything in the world, and GM has the tough job of convincing the customer to put GM cars and trucks on their shopping list.

Today, the GM Giant is trading more Asian and European imports and transplants than ever in our history. Customers that are driving these cars are learning that our product offerings are world class and American. Our sales are off, but at least for September, not as much as the imports. Cars like the North American Car of the Year Chevy Malibu, and Motor Trend Car of the Year Cadillac CTS are leading GM to a return of total world automotive sales dominance. Customers who have previously defected to imports are slowly returning to GM to learn that we have offerings superior to Accord and Camry.

This economy has put a terrible strain on the auto industry. But when money is tight, shoppers are much more careful with their spending. It looks like, at least for September, the smart money went to General Motors. Drive Safely.

Low Monthly Payments Catapulted GM Ahead of Ford in the Late 1920’s!

As I have been researching GM’s past, it is amazing how much some things just haven’t changed since then. Styling, prestige and monthly payment were just as important in the 1920’s as they are today.

In 1923, Alfred P. Sloan, a graduate of the prestigious Michigan Institute of Technology with a degree in electrical engineering, became the president of General Motors. Under his reign, GM passed Ford Motor Company as the largest automobile company in the United States. Sloan is credited for this as he developed management techniques that helped him handle the complexities of what was becoming a monster of a company, manufacturing and selling just about everything you could imagine in transportation, from planes and trains to automobiles.

Sloan used consumer credit and low monthly payments to allow far more people to buy GM vehicles, while Ford was moralistically opposed to credit. Sloan paid particular attention to consumer demands. While Ford was building basic transportation, Sloan recognized that consumers no longer wanted the most basic and cheapest model. They wanted power, styling and prestige. Credit allowed people to afford more car.

Sloan is credited with developing the pricing ladder that GM still uses today. By having many brands GM could meet the needs of buyers from entry level to total luxury, and move customers up through the brands as their position in life improved. Sloan felt that Chevrolet should represent the car that everyone can afford, up through Pontiac for the sports car enthusiast, Oldsmobile for entry luxury, then Buick and ultimately Cadillac for the most discriminating buyer.

Alfred Sloan also began a plan to change the styling of cars every year. He knew that as styles changed, consumers would want the new model, and planned obsolescence was invented. It would be a while before Ford would catch on to this new marketing. It worked and it worked well for GM as sales of their brands soared.

Today people still use credit to buy more car. Styling changes happen every year, and consumers are still motivated by styling, power and prestige. Of course today we must ad fuel economy as a consideration. I think Sloan would be proud that GM has more models today that get 30 mpg highway than any other manufacturer.

The deal still can take the day. GM with its 100th anniversary is offering GM employee pricing, the same price they sell to their employees, to every customer through the end of September. This added to huge rebates, represents the best pricing GM has ever offered.

Some things have changed over time and some have not. In 1930 GM was known for the most stylish, powerful, and best built motorcars in the world. Today GM’s quality and styling are world class.

For fore information on GM vehicles, or to comment on this article go to www.gmgiant.com. Drive safely!

Contest is Underway!

Dealerships Giving Away 10,000 Gallons of Gas This Weekend

The Bob Smith Automotive Group is taking on the gas crisis and helping you keep your tank and wallet filled! This weekend, the Bob Smith Automotive Group will register visitors to win 10,000 Gallons of Gas at the GM Giant in Easton and Giant GMC in Federalsburg.

The first 1,000 participants will be eligible to take a chance to win 10,000 Gallons of Gas- a whole 18 wheel tanker truck full of gas. Participants enter a 5 digit code in the bank vault and the correct entry will spring open the vault. The winner will receive a pre-paid credit card for $40,000- since the contest was orchestrated when gas was still $4/gallon! Today, it is actually worth 11,765 gallons of gas… enough gas to last the average person 24 years!

Visitors can register at the GM Giant, on Route 50 in Easton, or Giant GMC on Federalsburg Highway in Federalsburg, starting at 10am on Friday, Saturday, and Monday. A tanker truck from Tri Gas & Oil will be placed at the dealership in Easton with a banner facing Route 50 traffic promoting the sweepstakes.

The promotion is part of the Labor Day “Employee Pricing for Everyone” sale currently being offered by General Motors through September 2, 2008. Complete rules and details available at www.gmgiant.com. The contest is limited to the first 850 participants in Easton and the first 150 participants in Federalsburg. It is possible to have different winners at each location.

GM is Offering Employee Pricing For Everyone!

You Could Win 10,000 Gallons of Gas at the GM Giant!

Well, I told you last week that GM would be using the 100th anniversary of their company as a catalyst for sales promotions. Well the grand daddy of them all just got announced. GM is offering GM employee discounts to everyone on 90% of their inventory. That means that consumers can buy new GM cars and trucks for less than we pay for them as dealers and still take off rebates up to $6,000. That means you can save over $10,000 on some of our most popular models.

The last time GM did this was in 2005. GM’s sales rose to record levels over a short period of time and were blamed for much of the slow down in early 2006. Many automotive analysts felt that GM ran the promotion too long and pulled sales ahead at such a high rate that there simply were no customers left to buy the next year. GM must have learned from this because they have announced that it will only offer these prices through September 2nd.

One thing is different this time though. Right now industry experts say that slow sales over the past two years have created pent up demand in the area of 7 million vehicles. If this is right, the employee pricing tied to incredible rebates could create a sales bonanza.

GM’s product is the best in its history in quality, styling and fuel economy. Experts tell us that past perception of GM and other domestics have caused 40 percent of car and truck buyers to stay away from GM. That is to say that they won’t even consider GM. Industry experts now say the GM’s cars and trucks are world class, and in many cases the best in the world. If employee pricing gets customers to test drive GM cars and trucks, it could be just what the doctor ordered to jump start GM’s recovery.

GM already has the most vehicles to get over 30 mpg highway. Cars like the new Chevy Malibu and Cadillac CTS are taking the market by storm, and the buff magazines are saying things like, “imports beware” and “here come the Camry killers”.

I promised to write about GM’s history as part of my articles on the GM 100th anniversary. I was going to pick up where Billy Durant took over as the President of GM for the second time, but historically, this week’s announcement by GM of this new pricing strategy could be just as historically important as David Chevrolet’s first car. Drive Safely. Visit us at www.gmgiant.com for more information and to see how you could win 10,000 gallons of gas during the GM Giant Labor Day Event.

GM is 100 Years Old This Year!

It will be hard not to know GM is 100 years old this year as the world’s largest automaker will use this historical event as the catalyst for celebratory sales events over the weeks and months to come. I will write about the history of GM in a series of Did You Know articles over the next several weeks. Facts about GM’s roots in Americana should amaze you as they did me in my research. I hope you enjoy.

GM was founded in 1908 as a holding company for Buick Motor Company by William C. (Billy) Durant in Flint Michigan. But Buick dates back to 1899 when David Dunbar Buick built the first Buick Motorcar. David Buick was regarded as a dreamer at the time, but one year after it’s incorporation in 1903, Buick became the best selling car in the U.S. Buick, a company that actually started as a gasoline engine manufacturer, developed the first overhead valve engine that delivered an incredible 29 horsepower. Buick rose to prominence in race car circles with dominant horsepower and a race car driver by the name of Louis Chevrolet. Chevrolet would become GM’s post war president and CEO, and together with Durant would found the company bearing his name.

As a division of General Motors, Buick would be known as an innovator in technology and became famous for the first mass production V6 engine. The 231 cubic inch V6 developed by Buick is still the basic design used in today’s GM V6 engines.

GM was founded on September 16, 1908 in Flint, Michigan, and acquired Oldsmobile later that year. The next year Durant brought in Cadillac, Cartercar, Elmore, Ewing, and Oakland (later known as Pontiac). In 1909 GM also acquired the Reliance Motor Truck Company of Owosso, Michigan, and the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck. A Rapid became the first truck to conquer Pikes Peak in 1909. Welch and Rainer were added to the ever-growing list of companies. In 1910 Durant lost control of the company to Bankers Trust due to the vast debt incurred through his acquisitions. Durant left to form Chevrolet with Race Car Driver Louis Chevrolet.

In 1916 with the backing of Pierre S. DuPont, Durant after a brilliant stock purchase scheme took the helm of GM once again. DuPont became the Chairman of the Board and the corporate acquisitions resumed on both sides of the ocean.

This is where I will pick it up next week. Until then, drive safely. Visit our website at www.gmgiant.com. Much of the information in this article came from Wikipedia.org.

The US Press Has a Bias Against US Automakers!

One of the reasons I write these articles is to combat the media bias against American automakers. I admit, I am biased in favor of US automakers. But as I watched CNN’s Miles O’Brien’s segment Thursday (7/17/08) on electric cars my blood began to boil. He was driving some remnants of an era when Toyota and GM were making electric vehicles for use in California when that state was mandating the sale of zero emission vehicles. He reported accurately that GM took the lead in developing the EV1 electric car that they leased to consumers in California. He made a big deal out of GM “repossessing the EV1’s and destroying them”, while he was able to drive one of about 100 Toyota Rav 4 electric vehicles left in America. The fact is that GM took possession of the EV1 vehicles at the end of their leases, they were not repossesses in the connotation of the word repossess as it is commonly used in the banking and automotive world. GM leased these expensive to build electric cars to consumers, much like Honda is doing today with their hydrogen fuel cell offering. Further GM destroyed the vehicles as did Toyota, a point that he barely mentions at the conclusion of the piece, because by law if they did not, they would be forced to support the product for 10 years making parts available and following any mandates from the National Highway and Traffic Administration. He went on to ask his guest why he thought GM destroyed the EV1 vehicles; who suggested that it was done to protect the value of their other vehicle offerings.

If this wasn’t enough, O’Brien said that US automakers don’t offer electric vehicles. Now while it is true that the US automakers do not have electric vehicles for sale today, neither do the imports. And he never made mention of the Chevy Volt plug in electric hybrid scheduled to go on sale in 2010. This is an electric hybrid that runs 40 miles on electricity alone and is supported by a gasoline engine for longer trips. He could have mentioned the Hydrogen Fuel powered Chevy Equinox, now being driven in LA, DC and New York.

I am getting sick and tired of the US press saying that Detroit doesn’t make cars and trucks consumers want to buy. I hear this over and over again on CNN, CBS and NBC news casts. They said this when Ford’s F150 was the best selling vehicle in America. While GM’s sales are down they still are the best selling manufacturer in America. Does that mean the consumers who buy their cars are insignificant? Sales of high mileage vehicles are increasing, driven by higher fuel prices, but not everyone can drive a compact car. You hear very little about GM’s full size Hybrid SUV’s that get 20mpg in city driving.

Whenever one of the US automakers has a recall or a vehicle challenge, it makes the front page of the newspaper and is all over the television news. Has anyone heard or read about Toyota buying back thousands of Tacoma pickup trucks because the frames are rusting through. I never heard about it in the press, I learned it from a Toyota dealer who happens to be a Chevy dealer as well. I confirmed by doing a Google search for “Toyota Tacoma Rust”.

The media touts Toyota as the fuel economy King. AOL did a study on overall fuel economy by brand. Chevrolet came in third overall including their truck fleet. Honda won but by only a few tenths of a mile per gallon over Chevy, and they have only one truck in their fleet. Toyota came in tenth. Now AOL is owned by Time Warner, the same company that owns CNN, but you never saw this on American Morning. Using Google, I also learned about things like the class action suit consumers brought against Toyota for engine sludge and other things about the imports that go unreported or barely reported. It is just not popular to report bad things about the darling imports and good things about the Big Bad Three from Detroit.

I think the popularity of bashing Detroit is a subliminal reaction of Americans who are disappointed that in the past the US automakers built inferior products to the imports. But today that is different. Today GM builds cars with superior quality. GM has more models that get 30 miles per gallon highway than any other manufacturer, but you won’t hear that on CNN. Thanks for letting me vent. It is good therapy. Drive safely.

Cadillac & Buick Beat Out Lexus And Mercedes in Service Satisfaction!

Cadillac finished second and Buick finished third behind Jaguar in JD Power’s Service Satisfaction Survey. On a scale of 0 to 1,000 Jaguar scored an impressive 923 points followed by Cadillac at 922 and Buick at 919. Lexus finished fourth at 915 points. Chevrolet finished 12th beating Mercedes Benz who came in 20th place just above industry average. Toyota finished below industry average coming in 11 places from last place. The bottom 12 performers were Porsche, Toyota, Land Rover, Dodge, Jeep, Nisan, Mazda, Suzuki, Scion, Kia, Volkswagen and last place goes to Suzuki. The top 12 are Jaguar, Cadillac, Buick, Lexus, Lincoln, Mercury, Acura, Infinity, BMW, Honda, Saturn and Chevrolet. All GM brands finished above industry average and ahead of Mercedes Benz.

In a press release on July 17, 2008 JD Power said, “Cadillac improves by one position rank for 2008…This is attributable to particularly high levels of satisfaction among repair customers. Buick has strong performance... and its continuing efforts to improve quality have resulted in a decreasing incidence
of repair visits among the brands customers.”

The study found that communication with the customer after the services were received had a notably strong impact on customer satisfaction particularly through improving customers perception of fairness of charges and the value of services received. Customers contacted after services were performed scored their dealers an average of 100 points higher than those who were not contacted.

At the GM Giant, customers who provide us an e-mail address receive a thank you message with a satisfaction survey. Any scores less than completely satisfied generate a contact by a member of our management team. Those who do not provide an e-mail address receive the same survey in the mail. We constantly monitor our systems to make sure they are in alignment with our goal of complete customer satisfaction.

We have recently returned to team service. Each team has 4 to 7 technicians and work for one service advisor. Because we have three teams, it is like having three small service departments. This way you get the personal service of a small dealership with the parts and special tool availability of one of the nation’s largest dealerships.

It is our vision to be the best place on the planet to purchase a vehicle and to have a vehicle worked on. The JD Power survey is testimony to GM’s commitment to customer satisfaction. We take that to extremes at the GM Giant. Every one of our employees is paid on customer satisfaction. We know that customers don’t care how much you know about them until they know how much you care about them.

Drive Safely.

You Can Save Over $15,000 With GM’s 0% For 72 Months!

Last week I wrote about incentives and the marketplace, explaining that the slower business is, the better the incentives get. Well, the ink on the newspaper was barely dry when GM announced 0% financing for 72 months on most 08 GM cars and trucks. If you compare the normal finance charge on a $65,000 SUV to 0% you could easily realize savings over $15,000. Even at today’s gas prices, $15,000 buys a lot of gas. In fact that’s almost 4 years worth of gas for the typical driver of a full size SUV. If you compare gas prices from last year to this, you could drive 13 years before using up the savings at $4.00 per gallon assuming you drive 15,000 miles per year at 15 mpg average.

And GM didn’t restrict this savings to only full size pickup trucks and SUV’s; it applies to some of our most fuel efficient cars as well. And remember that GM offers more vehicles that get 30 mpg highway than any other manufacturer. If you have been considering trading your current vehicle on something that gets better fuel economy, this is a great time to do that as well. You could finance an $18,000 G6 with no money down for about $250 per month and get over 30 mpg highway. Think of the annual savings there. Considering that you will have only basic maintenance expenses with no repair cost while under warranty, your monthly ownership cost for the first three years could be as little as $270 per month. This considers estimated basic required maintenance at today’s rates if performed at the GM Giant, for the first three years on a Pontiac G6 added to your car payment. It also assumes 15,000 miles per year driving with service following GM’s Maintenance I and II.

As I wrote about last week, if you want to ad to your commercial fleet, this is an incredible time to buy a new pickup truck. The savings with 0% for 72 months are as good as it gets. Add to that the fact that JD Powers rated GM’s full size Silverado as the highest quality full size pickup on the market based on initial quality surveys and GM’s best warranty in America, and you have an incredible value.

General Motors continues to amaze the automotive press with the incredible engineering of its new products. The Chevy Malibu has been touted as equal to or better than Toyota Camry and Honda Accord by the automotive press. Now the preliminary tests indicate the new Chevy Traverse to be better than Toyota Highlander. The trend of Japanese vehicles being considered superior to GM’s is now turning as the nations’ best selling automaker is proving that it can build the best cars and trucks in the world.

In years gone by, the big three used incentives alone to sell cars and trucks. Now GM is building the best cars and trucks in the world, and because the public is still skeptical, they are using incentives to get you to try the product. If you are even remotely thinking about purchasing or leasing a new car or truck, this is the best time in history to consider General Motors. For more information on this and other GM cars and trucks, visit us at www.gmgiant.com. Drive safely... Hurry, though- 0% financing for 72 months ends Monday, 6/30/08.

This May Be A Great Time For Businesses To Add To Their Company Vehicle Feet!

It is no secret that truck and full size SUV sales are slow. In fact nationwide they are off almost 30%. This is due primarily to high fuel prices and a slowing economy. Many businesses, especially those that depend on the housing industry are feeling the pinch of slow business. But businesses that need trucks to do their work will eventually need new ones.

So why should a business add to their fleet now? I say add to your fleet rather than replacing trucks because the pendulum on truck trades has swung a bit too far to the left. Used truck prices are depressed because of the psyche of the consumer who is looking for cars that get great fuel economy, not trucks designed to do the work of American business. I am certain that there will be some recovery in truck values. It always happens after any market overcorrection. Business owners can keep their old truck as a convenience or wait until the values recover and sell them outright in the public market or to their dealer. If you want to trade, GM is offering rebates that go a long way to offset depressed trade values.

Perhaps the most compelling reason to buy now is the incentives the factory is putting on trucks. GM announced the closing of four truck plants last month. But make no mistake; GM still relies heavily on truck production to support corporate profitability. To keep the dealers ordering trucks and the plants rolling, GM is offering some of the most incredible savings I have ever seen. Right now you can get up to $6,000 in incentives or 0% financing for up to 60 months. There are other offers that combine financing and rebates. If you have a larger fleet of vehicles there are cap leasing plans and fleet incentives that are the best in decades.

Another compelling reason to purchase a new truck or SUV is fuel economy. Over the past 5 years there have been significant engineering advances in engine and transmission technology that yield better fuel efficiency than ever before. Use of composite materials makes new trucks lighter, increasing payload and miles per gallon. GM’s trucks offer the best V8 mileage of any full size truck on the market. And with GM’s “Best Warranty in America” including 100,000 mile power-train coverage, your ownership costs will be less than ever.

The automobile market is not unlike the stock market. When no one is buying the prices are lower. When everyone is buying the prices go up. By comparison, the factory is offering incentives to get you to buy now. Once the market recovers, there will not be the need for incentives that are as aggressive as the ones we see today.

Business cycles are somewhat predictable. History tells us that recessions typically last about 8 months. In August it will have been 6 months since the Federal Reserve Bank slashed rates almost three percent. Economists are generally unanimous in the belief that rate cuts work their way into the economy with the greatest benefit starting 6 months after the cuts. The government has offered one economic stimulus package and more are sure to follow. Many economists believe that although the price of oil will probably never return to 2006 levels, there is a bubble of speculation that sooner or later will burst as any speculative investment trend does. When the housing bubble got to big, it deflated. When tech stocks got out of control the market adjusted. So too will the oil bubble. It is not a question of if but when.

If you believe the economy will recover in the next 12 months, and you require trucks for your work, I suggest that this may be the best time in decades to ad to your fleet. If you are a business person that is trying to re-engineer your systems to accommodate more fuel efficient vehicles, perhaps even cars, we have a solution there as well. But that is the topic of another Did You Know article.

For information on this and any other GM programs visit us online at www.gmgiant.com.

Chevy Malibu Ranked #1 In JD Powers Quality Ranking!

Not only is the new Chevy Malibu the North American car of the year, it just won top honors in the mid sized car segment in JD Power & Associates prestigious initial quality survey. In fact, this volume product priced in the low twenty thousand dollar range finished fourth over all behind the Lexus LS, Mercedes S Class, and Porsche 911 all priced at triple that of the Malibu. Mark Phelan of the Detroit Free Press wrote, “The Malibu’s achievement is most significant...the fact that the Malibu rolled out of the factory straight into first place - and even more impressive fourth-best among all vehicles of all prices – validates GMs new emphasis on cars.”

And these aren’t the only accolades and awards for Malibu. In addition to North American Car of the Year, Malibu was named car of the year by the Detroit Free Press. It was ranked in Car & Drivers 10 Best. It was named best new vehicle and best redesigned vehicle by Kelley Blue Book. Parents Magazine/Edmonds.com named Malibu Best Family Car. OnWheels named it best urban vehicle and Kiplinger’s named it best in class and best new car.

If you Google Malibu you will find dozens of articles about the car. In my search I could not find one that didn’t immediately compare it to Camry and Accord. All of them were favorable with comments like these from Car and Driver. “Camry Beware” and “anyone looking at Accord or Camry should consider Malibu”. The New York Times said, “It’s like a super Accord only it’s from GM”.

With today’s fuel prices you will be pleased to know that Malibu leads its segment with an EPA highway rating of 30MPG and 32MPG for the hybrid version. Priced from $20,295 to $28,870, depending on equipment, the Malibu includes GM’s OnStar system that can provide turn by turn navigation and will send emergency services to you in case of air bag deployment.

GM told us they would build a better car than Camry and Accord, and I believe they finally have. And buying a Chevy Malibu gives you an opportunity to support the American economy by purchasing a vehicle that is not only assembled in North America, it uses components mostly produced in North America, and you are supporting an American Corporation.

For years the Japanese have dominated the small and mid size passenger car market. GM now has an offering that not only competes with the Japanese, in my opinion is superior to their offerings. I encourage you to test drive a Malibu and compare it to the competition. For more information on this or any GM products, log on to gmgiant.com. Drive safely!

You Can Save Big Money, Lots of Gas, and Get A $2,200 Tax Credit!

I have never been through a car market like this in my life. The closest was from 1980 to 81. The country was in recession and fuel prices were through the roof. The difference now is first that finance rates are low compared to rates so high in the 80’s that the legal limit on car loans had to be raised to accommodate the high fed funds rate. The other big difference is that in the 80’s the domestics had no idea how to build a fuel efficient vehicle that would meet federal emission standards.

Today, GM sells more vehicles that get over 30 mpg highway than any other manufacturer. And these aren’t just shoe boxes on wheels with mice running on a conveyer. They are incredible vehicles, and during GM’s Memorial Day Sales Event there are some incredible savings. Here are just a few:

- Chevy Cobalt gets 36 mpg hwy
- Pontiac G6 gets 30 mpg hwy
- Chevy HHR gets 30 mpg hwy
- Chevy Malibu gets 30 mpg hwy
- Pontiac G5 gets 35 mpg hwy
- Chevy Aveo gets 35 mpg hwy
- Pontiac Vibe gets 34 mpg hwy
- Chevy Malibu Hybrid gets 32 mpg hwy

During the GM Memorial Day Sales Event there are incredible savings. Take the Chevy Cobalt for example: You can purchase a new Cobalt for under $13,500 after $2,000 in available incentives. This is a 36 mpg highway vehicle. With today’s low interest rates you can probably lower your current payment and significantly improve your fuel economy over your present car, even if you are driving a compact.

Now here is another reason to consider GM this week. The GM Giant just purchased two Tahoe Hybrid trucks that had been used for evaluations by GM’s engineers. They have less than 4,000 miles on them and will qualify for financing as low as 4.9% APR. And GM can offer something on their hybrids you cannot get from Toyota, and that is a tax credit of up to $2,200. Toyota and Honda have used most or all of their allocation of credits for hybrid vehicle sales. GM is just getting started. Until GM sells 60,000 hybrid vehicles, the Tahoe and Yukon Hybrids will qualify for a $2,200 credit on your federal income tax. This is a credit, not just an adjustment in taxable income.

I mentioned last week that you can improve your fuel economy, help the local and national economy and reduce the emissions you pump into the air simply by replacing your old car with a new one. GM has made that easier with their Memorial Day Sales Event. Visit us at www.gmgiant.com for more information. Next week I plan on a comparison between the Yukon Hybrid and the Toyota Highlander. We had a request for that on our blog. I know already that you will benefit from the tax credit with GM. Thanks for reading and drive safely. The sale ends 6/2/08.

10 Reasons to Buy a Chevy

In the increasingly competitive world of car or truck buying, it's sometimes a challenge to sort through all the options. Then again, in the spirit of David Letterman, we've come up with the Top 10 Reasons to Buy a Chevy.

Reason #10: Optional equipment that's either "best in class" or simply not available elsewhere. A number of Chevy models beat the competition when it comes to what you can order.

Reason #9: Room to stretch. The Impala seats six adults (products from Nissan, Toyota, Honda and Ford offer just five).

Reason #8: Be safe. Chevy vehicles are highly rated for safety by the Insurance Institute for Highway Safety.

Reason #7: Best warranty. Chevy's standard 3-year, 36,000-mile bumper-to-bumper coverage, plus 5-year, 100,000-mile powertrain warranty.

Reason #6: Lower cost. Starting price for the Impala is less than the Camry LE, Accord, Altima, and Fusion. You'll ride in style and spend less.

Reason #5: Go further. With gas prices on a seemingly one-way trip to the moon, fuel sipping models like Chevy's Aveo (24 city/34 highway) and Cobalt (36 mpg highway with manual transmission) help.

Reason #4: People you know. Americans are making vehicles like the Impala among the highest rated from a loyalty standpoint.

Reason #3: Get up and go. Even smaller vehicles like Chevy's Aveo can turn it on when needed, with 103 horsepower/107 pounds of torque. On the other end of the spectrum, the 505 horses under the hood of the legendary Z06 Corvette.

Reason #2: Whisper quiet. Even a smaller vehicle like Chevy's Cobalt is quieter on the highway than the Corolla, Civic or Focus.

And the number one reason for buying a Chevy: It's part of the American Revolution—built to last, built to dazzle, built to have you coming back for even more value, performance and durability.

Chevy Cobalt Stands Tall in Competitive Comparisons!

Shoppers looking for a truly outstanding fuel sipping but feature-full vehicle need only look to Chevy's Cobalt for the solution to their transportation needs.

Yes, the Cobalt is an outstanding choice. Here's why: While choice has never been an issue—there being competitive products that include Toyota's Corolla, the Honda Civic, Nissan Sentra and Ford's Focus—from almost every measure, the Chevrolet Cobalt is the leader.

Since many people vote with their wallet, price is a good place to start: the Cobalt has a lower sticker price than any of the competitive products. It is also more likely to cost less to maintain, according to ratings from Intellichoice.com, which named the Cobalt "Best in Class" winner for "SmartChoice Low Maintenance Costs."
With fuel costs going sky-high, more and more consumers are making it both an economic and environmental point to lean toward the vehicle that's going to take them farthest on that $3-plus gallon of gas. And that vehicle is more likely to be the Cobalt, which is highly competitive (depending on the model, it beats out many of its challengers when it comes to the government's fuel economy ratings).

Let's face it, though. Functionality is important, but we want to look good on the road.

Cobalt's international heritage—GM did an outstanding job of melding the styling of its European subsidiary with classic Chevrolet lines—means heads will turn right here on the American roads this incredibly efficient vehicle is meant to navigate.

But is it safe? You bet.

Both the Sport Coupe and Sedan have GM's StabiliTrak as standard features (to help avoid collisions) and a host of safety features designed to protect occupants from injury in the event of a mishap, including dual-stage front air bags with occupant sensing, head-curtain side-impact air bags.

It's a winning combination, according to the widely respected Insurance Institute of Highway Safety, which gave the Chevrolet Cobalt its "Best Pick" rating for crash safety.

The features don't stop there. Standard equipment on the Cobalt includes GM's awesome OnStar system, electric power steering, air conditioning, AM/FM stereo with CD player, MP3 playback, auxiliary input jack and XM Satellite Radio. There's also a Driver Information Center.

A "loaded up" Cobalt might include remote vehicle starter, leather-trimmed seats with heated front seat cushions, power sunroof and 6-disc CD changer, depending on the choice of model.

Cobalt drivers and passengers are never shortchanged. A wide-pivoting center armrest, standard on the Cobalt, is just one of the features that makes this vehicle one of the most appealing from an interior standpoint.

GM has done a great job of anticipating not only what drivers want and need in an incredibly fuel-efficient but what they're dreaming about—style that will turn heads, a maintenance schedule that recognizes the demands of an always-busy lifestyle, and quality that stands up to world-class scrutiny.

Basic features that are either not available on the competition or at extra cost means smart drivers are doing themselves a service by considering the Chevrolet Cobalt for their next purchase.

It's a vehicle that stands tall in a proudly American tradition, unabashedly efficient, yet stylish in its execution.

Take one out for a test drive and you won't be disappointed. Miss this one and you'll wish you hadn't. For more information about the 2008 Chevy Cobalt or any of the vehicles available at the GM Giant, visit www.gmgiant.com.

GM Certified Used Vehicles Have a 5 Year 100,000 Mile Powertrain Warranty!

You know, as hard as it is for me to say this, a new GM vehicle is not always the best value for every consumer. Many people drive more than 15,000 miles per year and would like to replace their vehicle more often. For these and many other consumers, a Certified Used GM Vehicle may be the best option.

When you purchase a Certified Used GM Vehicle, the initial depreciation has already been absorbed by the original owner. The obvious advantage here is that the prices are much less than a new vehicle. GM has strict requirements for a vehicle to be considered Certified. First they have to be 5 years old or newer, and have less than 60,000 miles on them. It is our mission to have our Certified Used Vehicles be as much “like new” as we can reasonably make them.

Every GM Certified Used Vehicle has to pass a 117 point inspection. This inspection includes every operating system on the vehicle. All cosmetic issues must be dealt with and repaired. At the GM Giant, tire tread must be at least 50% of what it was when new, and the same applies to brakes. This is far greater than the minimums for Maryland State Inspection.

GM Certified Used Vehicles carry a 3 month 3,000 mile limited new vehicle warranty extension. Most used car dealers in Maryland offer the 30 day 1,000 mile limited warranty required by Maryland law. GM’s Certified Warranty gives you a minimum of 3 months or 3000 mile warranty whichever comes first, tied to the 5 year 100,000 mile Power Train Warranty from original in service date.

The GM Giant offers a 7 day 300 mile exchange policy. If you don’t like your certified used vehicle, bring it back. We even do a CARFAX vehicle history report on every Certified Used Vehicle, to provide you our best available assurance that the vehicle has not been damaged due to accident or flood. If there has been minor damage, we will disclose that prior to sale. If there has been any damage that might compromise the integrity of the vehicle, it cannot be certified.

But what about financing? Typically, used car finance rates are higher than new. Because of the high quality of GM Certified Used Vehicles, GMAC and most banks offer “like new” financing rates on Certified Used Vehicles. In fact, GMAC is offering financing rates as low as 2.9% APR right now on selected late model Certified Used Vehicles.

As if all of this isn’t good enough, Certified Cadillac Used Vehicles get all of this plus a 100,000 Cadillac Certified Used Vehicle Warranty that covers almost everything outside of maintenance for up to 5 years and 100,000 miles from the original in service date. You should refer to the GM Giant for restrictions and details about all certified coverage, or visit gmcertified.com.

Some people are uncomfortable purchasing used vehicles because of anxiety about condition and quality. The GM Giant tries to take this anxiety away with GM Certified Used Vehicles. To see our Certified Used Vehicle inventory, visit www.gmgiant.com.

GM’s Dual Mode Hybrid System Could Be America’s Best Hope for Oil Independence!

Now I know this may sound incredible: GM’s dual mode hybrid system is on big trucks. How can that possibly save America from its oil addiction? Well, let me make a few loose suppositions. First, over 50% of vehicles on the road today are trucks and sport utility vehicles. GM’s dual mode hybrid system improves fuel economy by up to 50% on the vehicles on which it is installed. If you follow this through, if all trucks and SUVs were replaced with like vehicles using GM’s dual mode system, we could see a reduction in fuel demand of up to 25% nationwide. That would be huge!

Of course this is a stretch, but it does demonstrate that the key to success is in building fuel efficient vehicles that will do the work of America. While there is certainly a place for small fuel efficient vehicles, the biggest bang for our buck may be in large ones.

GM started the research in hybrid technology in its truck and bus division. GM felt that the market for hybrids was in mass transportation, and developed the first dual mode hybrids to run busses in America’s largest cities. This technology has been adapted for use in our SUVs and pickups, and will evolve for use in large cars and crossover vehicles.

Now for the real silver bullet: Hydrogen. You combust hydrogen and you get water. GM has a fleet of 100 hydrogen powered Equinox SUV’s running around Washington DC right now. It is going to take the will of congress and continued high oil prices to push for a hydrogen distribution system in the US. GM is the leader in this technology.

The GM GIANT has a Yukon Hybrid in stock now available for test drives. Come take a trip around the block in this impressive fuel saver. For more information about this and other GM products, visit us at www.gmgiant.com

The GM Giant Has The New Yukon Hybrid In Stock!

The long awaited 2008 Yukon Hybrid has finally arrived at the GM Giant for you to test drive. Once you do, I am certain many of you will want to order one. Initial production is pegged at about 10 percent of capacity. As demand is evaluated, GM will increase or decrease that mix between conventional and Hybrid. After driving the vehicle, I am certain it will be a hit and production will be increased.

Driving the Yukon Hybrid at slow speeds around my neighborhood was like driving an oversized golf cart. The electric engine operated this big 8 passenger truck with only the quiet whine of the electric engine and the noise of the tires popping over the macadam road surface can be heard. A more aggressive acceleration from a stop sign resulted in the engine kicking in, then the hybrid system with the engine going into 4 cylinder mode. Were it not for the display on the dash, I would not have known any of the changes in the power mode. The only time you notice a change is when you slow down and the engine cuts off, leaving you 100% on battery power. Then the only reason you know is that it gets REAL QUIET.

The hybrid version of the Yukon and Tahoe delivers up to a 50% increase in fuel economy over their standard non-hybrid version. GM announced an EPA estimated 21 mpg city and 22 mpg highway for the 2 wheel drive hybrid Tahoe and Yukon models. That matches Toyota Camry’s 4 cylinder model’s EPA estimated 21 mpg city and beats the 6 cylinder model by 2 mpg. All of this is accomplished without any compromise in power thanks to the world class dual mode hybrid technology. It is important to note that these estimates are using the EPA’s new, more conservative, “real world driving” ratings.

America has had a long love affair with the full size SUV. That relationship has been challenged by high fuel prices. Now you will be able to get the benefits of the full size Tahoe and Yukon with the mileage of a mid size sedan. Did I mention power? These hybrid family movers boast a 6.0 liter V8, delivering 332 horse power and 367 pounds-feet of torque.

The dual mode hybrid system allows the Tahoe and Yukon to run up to 32 mph on electricity alone. After that speed the trucks either run on gasoline alone or a combination of gasoline and electricity. GM’s fuel management system will deactivate cylinders at highway speeds under low load, increasing the fuel efficiency. What is really neat about this system is you don’t even know it is happening, and it operates flawlessly, unlike the old 2-4-8 system of the early 80’s.

GM is also planning to use the two mode system in its Silverado and Sierra pickups. GM’s two mode system can be re-sized to work on smaller mid sized vehicles, and I am told they are working on bringing out hybrid models of other GM vehicles. The nice thing about the two mode system is that it can be adapted for use on smaller vehicles, unlike Toyota’s hybrid system that only works well on smaller vehicles.

GM continues to invest heavily in alternative fuel technology. They offer the most E85 capable vehicles in the world that run on a fuel mixture of 85% ethanol, usually from corn, and 15% gasoline. The new Chevy Volt plug in electric vehicle will run entirely on electricity, with gasoline only being used to run a generator when trips exceed 45 miles. GM also has a fleet of Hydrogen Powered Equinox SUV’s, where the only emission is water vapor, running America’s roads.

I invite you to come test drive the new Yukon Hybrid and see for yourself how saving on fuel can be accomplished without a compromise on size comfort and power. For more information on this and other GM products, visit us online at www.gmgiant.com.

Did you know you can have maintenance done at your dealership as cheap as anywhere else?

The evolution of the new car dealership service departments is an interesting study in market shifts. Back in the 70’s, the typical car dealer relied on the factory payment of warranty claims to sustain the parts and service operations. The factory paid the dealer based on the rate they charged customers for maintenance and other customer pay functions. Since warranty work could represent well over 50% of the total service load to the shop, the dealership had to charge higher rates on customer pay to get the factory to pay more. Training and special tools were expensive, and these higher rates were necessary to support the expense.

This spawned a new industry in the United States. Independent shops and tire vendors began to pop up everywhere, offering lower prices on maintenance and non warranty repairs. The dealers didn’t mind because they were concentrating on completing warranty repairs.

Over time, dealership gross profits on new and used cars and trucks began to get squeezed due to competition, and quite frankly the customer’s ability to easily travel on more efficient roadways and shop. Dealers were faced with a dilemma. Dealers had to get profit from the parts and service departments to make up for lower profits on cars and trucks. They began to realize that they had chased the more profitable brake, tire, suspension, and exhaust work away to the independents. In fact, in many cases, technicians that had been trained by the dealerships were going to work for these independents or opening their own shops.

Along came a cottage industry of consultants that began teaching dealers how to get the profitable maintenance business back. Dealers had to re-price their labor and do things like variable labor pricing, and offering less expensive non original equipment manufacturer parts. But the factory came back with longer 3-4 and 5 year warranties. This had the effect of stalling the move to lower prices.

Today, even with longer warranties, the quality of the cars and trucks, at least for GM, is so good that warranty work now only represents 10 to 15 percent of total dealership service. We have to get the defectors; (those who only use the dealership for warranty and take the rest of the work elsewhere) back into dealership service departments.

The GM Giant is embarking on a new campaign to do just that. While we will make the case for Genuine GM Parts with lifetime parts and labor warranties, and work done by factory trained technicians, we will offer alternatives. The independents don’t use factory trained technicians and seldom if ever use factory parts. The reality is there is a place for both. Depending on your individual situation, we may recommend factory parts installed by our best technicians, or we may suggest less expensive parts installed by journeymen technicians, saving you money. One thing is for sure: We do not want you taking your car to anyone else but us for service, and we are willing to cut our prices to do it. You will see us advertising specials that will be as good as anything in the market. We will still offer Genuine GM Parts, and in some cases almost insist on them. But if price is the determining factor on whether you get the work done or not, we will commit to offer the same or better value than our competition. Even though we know our factory brakes will last longer and have a better warranty, we would rather see our customers buy aftermarket brakes from us than drive an unsafe vehicle. It is a new mindset, but we are determined to provide the best value for our customers.

For information on this or any GM Giant products, visit us online at www.gmgiant.com.

DID YOU KNOW THE AUTO INDUSTRY CELEBRATES PRESIDENT’S DAY FOR 15 DAYS AND WHY?

A young person once asked me what President’s Day was all about. I explained that it started off as a celebration of George Washington’s birthday. Washington was the first President of The United States of America and served from 1789 until 1797. He was offered a salary of $25,000 per year, which he refused. He was married to Martha and is generally known as “the father of our country”. George was born on February 22, 1732 according to the calendar commonly used since the 18th century. However, the old style calendar used during that era claims George was born on February 11th. . The Federal Government officially made George Washington’s birthday a federal holiday, officially setting his birthday and the holiday as the 22nd of February.

Having a holiday that doesn’t fall on a Monday really messes up the long weekends preferred by American government workers. So in 1968 Congress passed HR 15951 making Washington’s birthday the third Monday of February.

Now along comes Abraham Lincoln, the 16th president of the United States. Known as Honest Abe, President Lincoln is best known as the president who freed the slaves, and for being assassinated while attending a play. One of the nations most beloved presidents, he had the misfortune of being born on February 12th. Celebrating another president’s birthday in the same month as father of our country is just too hard on commerce, and his birthday never became a federal holiday, although it is a legal holiday in several states. So now, although the office of personnel management only recognizes Washington’s Birthday, we generally celebrate the third Monday in February in honor of the birth of George Washington, Abraham Lincoln and every other President.

In 1928 President Herbert Hoover’s campaign slogan was, “a chicken in every pot and a car in every garage”, referring to the prosperity citizens would enjoy under his administration. I guess the auto industry picked up on this, because we now celebrate Presidents day for 14 days (15 in a leap year like this year) with rebates and incentives. You will hear more about Presidents Day over the next two weeks in ads for cars to last you until Election Day.

GM is offering 0% financing for 60 months plus $1,000 in rebates on its most popular models. If you don’t want the financing you can take increased rebates. On top of this there are other incentives on some left over models along with Auto Show rebates in honor of the Baltimore Auto Show that just ended. President’s Day is the proclaimed beginning of the selling season for the auto industry, and GM is expecting a sales boom.

Vehicles like the Motor Trend Car of the Year, Cadillac CTS; the North American Car of the Year, Chevy Malibu; the Chevy Silverado, the longest lasting truck on the road; GM’s popular crossover vehicles, and the GMC Acadia and Buick Enclave are being relied on heavily by GM to kick the 08 selling season in full gear. GM was the only major manufacturer to have a year over year sales gain in January, and they expect the gains to continue.

Now as for the young person who asked me about President’s day, I think I understand his confusion. For information on GM vehicles, visit us at www.gmgiant.com.

DID YOU KNOW THIS COULD BE THE BEST TIME EVER TO BUY A NEW CAR OR TRUCK?

GM WAS THE ONLY MAJOR MANUFACTURER WITH A SALES INCREASE IN JANUARY.

The US auto industry just announced that new car and light truck sales were off 8.5% from the same period of sales last year. Slumping auto sales, historically low home sales and the mortgage meltdown are evidence of a slowing economy that has the Federal Reserve Bank cutting the discount rate dramatically.

Of the major manufacturers, only GM had a sales increase. GM’s sales were up 2.8%, led primarily by retail sales. In a strategic move to boost residual and future trade in values of its cars and trucks, GM has resisted sales to rental fleets. Those sales are historically low margin and used to keep plants running.

Manufacturers reporting declines in sales include Toyota, whose sales were off 2.9%, Honda and Nissan reported sales declines of 2.9% and 7.3% respectively, and Ford’s total sales were off 3.9% including fleet, but retail sales were down a full 9%. The big loser was Chrysler who reported their sales off by 12%.

But what makes this a good time to buy, when it is clear that the trend is down? The reality is that auto manufacturers business is building cars and trucks. If consumers don’t buy, plants get idled and the manufacturers lose money. This is the point where incentives take over. Even though GM’s sales were the only ones that were up, they were still no where near levels that will perpetuate production.

Like the stock market, the best buys are when the market is down. You can take advantage of incredible incentives to buy a new car or truck now. And at least for GM, the quality of cars and trucks offered for sale are the best in history. GM, for example, is offering 0% financing for up to 72 months on some models. That represents huge savings over conventional financing. GM is also offering rebates of up to $4,000, and this is after they cut window sticker prices significantly last year. Don’t think the incentives are just on leftover inventory. GM has incentives on just about every model in the line-up, including the 2008 versions.

As the Fed continues to cut rates and the government initiates an economic stimulus package, we know eventually the market will recover and new car and light truck sales will return to normal. Until then it is a buyers market. The quality has never been better. Cars and trucks are more fuel efficient than any time in our history. This is truly the time to buy. For more information about incentives and deals on GM cars and trucks, visit our web site at www.gmgiant.com, or visit us in Easton and Federalsburg.

DID YOU KNOW YOU CAN DRIVE AMERICAS FASTEST SELLING VEHICLE, BUICK ENCLAVE, AND PLAY IN A PGA TOUR EVENT?

A lot has been made of Tiger Woods and his relationship with Buick. Click on to Buick.com and get an introduction to the Buick Enclave by the number one golfer in the world, Tiger Woods. While you are there you will get a tour of the Buick Clubhouse, where membership is reserved for Buick owners and dealers.

As a member you will be entitled to discounts on greens fees at any TPC golf course in the United States. You will be offered the opportunity to play in PGA Pro Am events and to walk inside the ropes with your favorite PGA pro at specified tournaments. There are discounts available on golf equipment and many other golf related amenities.

The Buick Enclave has made its debut, and has been recognized by CNBC as America’s fastest selling vehicle. This is based on the amount of time vehicles stay on the lot after being shipped to dealers. That makes it a faster selling model than the Toyota Prius, Mercedes C Class, Honda Fit and the only other American car on the top ten list, the GMC Acadia.

What makes this Buick such a great hit? I would suggest its elegant styling and 8 passenger capacity, along with Buicks legendary quiet ride. The Enclave boasts xenon articulating head lamps, elevated heated seats, rear park assist with a rear camera, and heated washer fluid all designed to give you a clear unrestricted 360 degree view.

The enclave is quieter than the Lexus RX 350, Acura MDX and Mercedes R Class, with its exclusive Quiet Tuning. It comes with a Bose 5.1 10 speaker surround sound audio system for a concert quality sound experience.

Enclave boasts a 275 horsepower V6 engine teamed with a 6 speed automatic transmission and GM’s famous StabiliTrack, giving Enclave unparalleled performance and handling. Starting MSRP is $33,505.

Buick Enclave of course comes standard with GM’s OnStar, and has GM’s 100,000 mile warranty. Come test drive an Enclave and see why it is the fastest selling vehicle in America. For more information, visit www.gmgiant.com. To comment on this and other Did You Know articles, visit our blog at gmgiant.com.