GM to End Employee Discounts, But Slash Sticker Prices

August 1 will mark the end of GM's employee-discount marketing experiment, it having successfully spurred sales and depleted fat inventory stocks. But perhaps to prevent losing out on future sales on its upcoming models, GM announced a new pricing strategy, in which it will decrease sticker prices rather than offer equivalent rebates. The strategy is one it's likely been planning for a while, considering the extensive use of rebates and incentives, many economists believe, has been eating into the resale value of automakers' cars. Prices of some GM vehicles could be cut by as much as $10,000. No word on whether Ford or Chrysler will end their programs, or institute a similar pricing policy, but we'd be surprised if they didn't take the opportunity. And isn't the announcement of price reductions a kind of promotion, at least initially?

Related:
GM Offers Employee Discount to All Buyers; Ford Increases Rebates on Explorer SUV Ahead of Redesign; GM Announces New Rebates Atop Employee Discount; GM Employee Discount Roundup: Trucks, Loyalists Dominate [internal]