GM to Dealers: Can't Sell It — Why Don't You Rent It?


A GM insider forwarded along an incentive program bulletin the General sent out to dealerships this week. The bulletin announces GM's (continued?) intent to push dealers to "form, increase, or maintain service/rental fleets that feature GM vehicles." Ok, that's an interesting thing for a dealership to get into the business of — one would hope GM would want dealers to be focusing on selling cars rather than random one-off daily rentals. Because we know DaimlerChrysler and Toyota offer a program similar to this, we're not sure if this is new to the General — or if it's something GM's offered in the past. It's also interesting GM's marketing it as "a companion to the Enterprise program...[where] dealers can choose between the two programs or use both for courtesy transportation purposes." That probably won't make their rental-car offering, fleet-car buying buddies at Enterprise all that happy. Even more interesting are the incentives offered in the bulletin, which we've got the full text of after the jump...

...the vehicles used will provide allowances both when the vehicle is "bought" by the dealer for placement into service — as well as when it is taken out of rental service to be sold to customers. What are the deals like? Well, how about some astonishing incentives on their new GMT-900's — $3,500! Gee, and we though GM was getting out of the whole incentive business.

Here's the full text of the bulletin:

INCENTIVE - GENERAL MOTORS BUICK, CHEVROLET, AND PONTIAC-GMC DEALERS

Subject: 07-36X 2007 GM DEALER RENT-A-CAR (GMDRAC) PROGRAM
Message #: BAI20062290

1. PROGRAM NUMBER/PROGRAM NAME/TEMPLATE TYPE:

PROGRAM NUMBER: 07-36X
PROGRAM NAME 2007 GM DEALER RENT-A-CAR (GMDRAC) PROGRAM

TEMPLATE TYPE: N/A THIS MESSAGE CONTAINS ALL GUIDELINES

2. PROGRAM DESCRIPTION:

THE GM DEALER RENT-A-CAR (GMDRAC) PROGRAM PROVIDES ALLOWANCES
BOTH WHEN THE VEHICLE IS PLACED IN SERVICE AND WHEN IT IS
TAKEN OUT TO BE SOLD TO A CUSTOMER TO ENCOURAGE DEALERS TO
FORM, INCREASE, OR MAINTAIN SERVICE/RENTAL FLEETS THAT FEATURE
GM VEHICLES. IT IS ALSO A COMPANION TO THE ENTERPRISE
PROGRAM - DEALERS CAN CHOOSE BETWEEN THE TWO PROGRAMS OR USE
BOTH FOR COURTESY TRANSPORTATION PURPOSES.

ADDITIONALLY, THESE VEHICLES ARE ELIGIBLE FOR WARRANTY RENTAL
REIMBURSEMENT AS OUTLINED IN THE GM SERVICE POLICY AND
PROCEDURES MANUAL

GMAC FINANCE AND INSURANCE OPTIONS
—————————————————
GMAC HAS SEVERAL PROGRAMS TO ASSIST GMAC DEALERS WITH FINANCING
THEIR RENTAL VEHICLES. THE GMAC RENTAL PLAN PROVIDES FINANCING,
RENTAL AGREEMENTS, AND A COMPREHENSIVE INSURANCE PACKAGE AT
VERY COMPETITIVE TERMS FOR RENTALS BY SERVICE AND DAILY RENTAL
CUSTOMERS. THE GMAC SHOP RENTAL PROGRAM PROVIDES FINANCING FOR
VEHICLES USED FOR SHORT-TERM RENTAL BY SERVICE CUSTOMERS AND
CUSTOMERS AWAITING RETURN OF STOLEN VEHICLES OR DELIVERY OF
ORDERED VEHICLES. COMPREHENSIVE AND COLLISION INSURANCE
COVERAGE'S ARE AVAILABLE OPTIONS. HOWEVER, DEALERS MUST PROVIDE
THEIR OWN LIABILITY COVERAGE. PLEASE CONTACT YOUR LOCAL
GMAC OFFICE OR SALES CONSULTANT FOR DETAILS.

FOR INFORMATION ON FORMING AND/OR MAINTAINING AN IN-DEALERSHIP
RENTAL OPERATION, PLEASE REFER TO THE "ALTERNATIVE
TRANSPORTATION" SECTION OF THE RETAIL OPERATING SYSTEM (ROS)
DOCUMENT IN GM DEALER WORLD. (THE "ALTERNATIVE TRANSPORTATION"
SECTION CAN BE FOUND IN THE "MARKET DEVELOPMENT" ROS UNDER
"CUSTOMER SERVICES".)

3. PROGRAM START DATE/PROGRAM END DATE:

PROGRAM START DATE: OPENING OF 2007 MY ORDER SYSTEM.
PROGRAM END DATE: VEHICLES MUST BE DELIVERED INTO GMDRAC
SERVICE BY SEPTEMBER 30, 2007.

4. ELIGIBLE MODELS & ALLOWANCES/GMDRAC CRITERIA/REQUIRED
OPTIONS/ORDER CRITERIA/CHARGEBACK CRITERIA:

ELIGIBLE 2007 MODELS & ALLOWANCES:
3 MONTHS 12 MONTHS
IN SERVICE* IN SERVICE**
BUICK
LACROSSE $1,000 $3,000
LUCERNE $1,000 $3,000
RENDEZVOUS $2,000 $4,000
RAINIER $1,500 $3,500
TERRAZA $2,000 $4,000

CHEVROLET
AVEO $500 $2,000
COBALT $750 $3,000
MALIBU SEDAN/MAXX
WITH LS 4 CYL ENGINE $500 $3,000
ALL OTHER ENGINES $1,000 $3,000
IMPALA $1,000 $3,000
MONTE CARLO $1,000 $3,000
HHR $750 $3,000
EQUINOX $750 $3,000
COLORADO $1,500 $3,500
SILVERADO CLASSIC (GMT800) $2,000 $4,000
TRAILBLAZER $1,500 $3,500
TAHOE $1,500 $3,500
AVALANCHE $1,000 $3,000
SUBURBAN $1,500 $3,500
UPLANDER $2,000 $4,000
EXPRESS $1,500 $3,500

PONTIAC & GMC
G5 $750 $3,000
G6 (COUPE & CONVERTIBLE) $750 $3,000
G6 (SEDAN) $1,000 $3,000
VIBE $750 $3,000
GRAND PRIX $1,000 $3,000
TORRENT $750 $3,000
ENVOY $1,500 $3,500
CANYON $1,500 $3,500
SIERRA CLASSIC (GMT800) $2,000 $4,000
YUKON/YUKON XL $1,500 $3,500
SAVANA $1,500 $3,500

ANY MODELS NOT LISTED ABOVE ARE NOT ELIGIBLE FOR THE GMDRAC
PROGRAM.


PROGRAM PROCEDURE & ALLOWANCES:

STEP 1. PLACE THE VEHICLE INTO GMDRAC SERVICE BY RECORDING THE
VEHICLE DELIVERED TO THE DEALERSHIP USING CDR DELIVERY
TYPE '025' (CTA/DRIVER EDUCATION/GMDRAC)

STEP 2. APPLY FOR THE APPROPRIATE GMDRAC ALLOWANCE VIA CDR:

3 MONTHS IN SERVICE* = $500 UP TO $2,000 AS
INDICATED ABOVE
12 MONTHS IN SERVICE** = $2,000 UP TO $4,000 AS
INDICATED ABOVE

*VEHICLES ARE ELIGIBLE FOR NEW VEHICLE RETAIL INCENTIVES (MUST
HAVE LESS THAN 7,500 MILES).

**VEHICLES ARE NOT ELIGIBLE FOR NEW VEHICLE INCENTIVES.
VEHICLES ARE ELIGIBLE FOR WAIVER OF CUV FEE ($105).

NOTE: VEHICLES MUST HAVE ACCUMULATED A MINIMUM OF 2,000 MILES.

STEP 3. UPON REMOVING VEHICLE FROM GMDRAC SERVICE:
A. IF 3 MONTHS IN SERVICE (LESS THAN 7,500 MILES), GO TO
STEP 4.
B. IF 12 MONTHS IN SERVICE - UNIT IS ELIGIBLE FOR CERTIFIED
USED (CUV) FEE WAIVER - DEALER IS TO ENTER UNIT INTO
INVENTORY AND CERTIFY IT FOLLOWING ALL THE CUSTOMARY
PROCESSES. ONCE THE UNIT IS CERTIFIED, DEALER SHOULD FAX
A COPY OF THE OPEN ACCOUNT STATEMENT WITH THE COURTESY
TRANSPORTATION ALLOWANCE FOR THE SPECIFIC VIN CIRCLED,
AND A SHORT STATEMENT REQUESTING REIMBURSEMENT FOR THE
CERTIFICATION FEE TO (866) 398-3256. DEALERS WILL BE
NOTIFIED VIA FAX IF THE UNIT DOES NOT MEET THE
REQUIREMENTS. NO SECONDARY CDR REPORTING REQUIRED.

STEP 4. UPON SALE OF A GMDRAC VEHICLE THAT HAS BEEN IN SERVICE
FOR 3 MONTHS AND LESS THAN 7,500 MILES), TO A RETAIL
CUSTOMER:

DEALER SHOULD INITIATE A SECONDARY DELIVERY USING THE
APPROPRIATE CDR DELIVERY TYPE FOR THE CUSTOMER
PURCHASING THE VEHICLE AND APPLY FOR ELIGIBLE NEW
VEHICLE RETAIL INCENTIVES. IMPORTANT NOTE: THIS
SECONDARY DELIVERY EVENT IS ONLY FOR THE PURPOSE OF
PROCESSING THE RETAIL INCENTIVES, AND RECORDING THE
CUSTOMER INFORMATION. IT DOES NOT REPLACE THE INITIAL
DELIVERY EVENT (CDR TYPE 025). THAT INITIAL DELIVERY
EVENT REMAINS AS THE OFFICIAL DELIVERY COUNT.

PLEASE REFER TO SECTION 8 OF THIS GUIDELINE FOR COMPATIBILITY.
SINCE NOT ALL PROGRAMS LISTED IN SECTION 8 MAY BE COMBINED WITH
EACH OTHER, CONSULT THE GUIDELINES OF EACH PROGRAM IN QUESTION.
PROGRAMS NOT LISTED IN SECTION 8 ARE NOT COMPATIBLE UNLESS
SPECIFIC GUIDELINES INDICATE OTHERWISE.

NOTE: THESE VEHICLES ARE NOT ELIGIBLE FOR GM EMPLOYEE,
DEALERSHIP EMPLOYEE OR SUPPLIER PURCHASE PROGRAMS.

DEALERS MUST MAINTAIN A DAILY RENTAL LOG WHICH INCLUDES VIN,
CUSTOMER NAME, DATE OUT, MILEAGE OUT, DATE IN, MILEAGE IN. THE
LOG MUST BE RETAINED FOR A PERIOD OF THREE YEARS FROM OUT-OF-
SERVICE DATE.

ORDER CRITERIA: NONE.

CHARGEBACK CRITERIA: INCENTIVE MONIES WILL BE CHARGED BACK FOR
ANY VEHICLE USED IN ANY MANNER THAT IS NOT IN COMPLIANCE WITH
THE REQUIREMENTS OF THIS PROGRAM.

UNLESS OTHERWISE SPECIFIED, ALL ELIGIBLE VEHICLES MUST BE
PURCHASED FROM GENERAL MOTORS AND DELIVERED TO THE DEALERSHIP.
PURCHASES OR DELIVERIES MADE THROUGH ANY OTHER ENTITY OR
INDIVIDUAL ARE INELIGIBLE FOR PAYMENT. DEALERS PURCHASING
VEHICLES FROM UNAUTHORIZED SOURCES WILL BE HELD RESPONSIBLE
FOR ANY INCENTIVE MONIES PAID.

ANY ELIGIBLE VEHICLE DELIVERED TO OTHER THAN A QUALIFIED
GENERAL MOTORS DEALER DAILY RENTAL OPERATION IS INELIGIBLE
AND DEALER WILL BE DEBITED FOR ANY ALLOWANCES PAID. FAILURE
TO COMPLY WITH THESE GUIDELINES MAY ALSO RESULT IN THE DEALER
BEING DISQUALIFIED FROM FUTURE PARTICIPATION IN THIS PROGRAM
AND/OR TERMINATION OF THE DEALER SALES AND SERVICE AGREEMENT.

USE OF GMDRAC VEHICLES IS TO BE CONFINED TO DAILY RENTAL ONLY.
USE AS DEMONSTRATORS, DEALERSHIP UTILIZATION BY EMPLOYEE OR
FAMILY MEMBERS, OR DEALERSHIP COMPANY CARS (I.E., PARTS
PICKUP, DELIVERY, RUNNING ERRANDS, ETC.), IS STRICTLY
PROHIBITED AND WILL RESULT IN A CHARGEBACK OF THE INCENTIVE
MONIES.


5. METHOD OF APPLICATION/FINAL DATE FOR SUBMISSION OF APPLICATION
AND RESOLUTION OF REJECTS:

METHOD OF APPLICATION: CUSTOMER DELIVERY REPORTING

INCENTIVE
CODE
3 MONTHS IN-SERVICE: FKR
12 MONTHS IN-SERVICE: FKL

FINAL DATE FOR SUBMISSION OF APPLICATIONS AND RESOLUTION OF
APPLICABLE REJECTS: DECEMBER 31, 2007.

6. METHOD OF PAYMENT:
EFT WEEKLY OPEN ACCOUNT

7. DELIVERY REPORTING/COMPATIBLE INCENTIVE/ALLOWANCE PROGRAMS
FLEET CUSTOMERS (FAN HOLDERS):

NOT APPLICABLE FLEET DELIVERIES ARE NOT ELIGIBLE.

IF THE VEHICLE IS BEING PLACED INTO SERVICE WITH THE DEALER
OWNED RENTAL/LOANER OPERATION AND THAT OPERATION HAS A GM FAN,
THE REQUIREMENT TO REPORT THE DELIVERY AS FLEET IS WAIVED AND
DELIVERY TYPE 025 SHOULD BE USED.

8. DELIVERY REPORTING/COMPATIBLE INCENTIVE/ALLOWANCE PROGRAMS
NON-FLEET COMMERCIAL CUSTOMERS (NON-FAN HOLDERS):

DELIVERY REPORTING: TO PLACE VEHICLES INTO GMDRAC SERVICE, THE
VEHICLES MUST BE REPORTED AS DELIVERED TO THE DEALERSHIP USING
THE FOLLOWING DELIVERY TYPE UNDER THIS PROGRAM:

CDR DEL DESCRIPTION
TYPE
025 CTA/DRIVER EDUCATION/GMDRAC

COMPATIBLE INCENTIVE PROGRAMS: VEHICLES DELIVERED TO NON-FLEET
COMMERCIAL CUSTOMERS (NON FAN HOLDERS) WITH THE ABOVE DELIVERY
TYPES MAY BE ELIGIBLE FOR THE FOLLOWING OTHER INCENTIVE
PROGRAMS. BECAUSE NOT ALL THE PROGRAMS LISTED BELOW MAY BE
COMBINED WITH EACH OTHER, CONSULT THE GUIDELINES OF EACH
PROGRAM IN QUESTION. PROGRAMS NOT LISTED BELOW WOULD NOT BE
COMPATIBLE UNLESS SPECIFIC GUIDELINES INDICATED OTHERWISE.

RETAIL/COMMERCIAL CUSTOMERS (NON-FAN HOLDERS)
GENERAL
GM GOODWILL CERTIFICATE (LCP) YES*
GM CARD (BLUE/GOLD) (UDE) YES*
GM CARD (STD/PLATINUM) (UDP) YES*
GM BUSINESS CARD (UDB) YES*
GM EXTENDED FAMILY CARD (UDF) YES*
GMEPP (GMS/GMU/U6C/U9D/U7C) NO
GM MOBILITY (MOB/MOC/R8L) YES
GM CUSTOMER APPRECIATION CERTIFICATE (VHC) YES*
CONSUMER CASH (CNC/CNE/CSE/CSR/CWE) YES*
DEALER CASH YES*
BONUS CASH YES*
STOCKING PROGRAMS NO
INSTANT VALUE CERTIFICATES YES*
GM IN THE DRIVEWAY (GID) NO
SALESPERSON/SALES MGR. INCENTIVES YES*
CASH DIRECT MAILS/PRIVATE OFFERS/GENERAL
COUPONS/CERTIFICATES/NON-CASH VENDOR PROGRAMS YES*
GMAC INCENTIVIZED RATES/RESIDUALS YES*
GMAC SMARTLEASE/SMARTBUY YES*
PRICING
PRICE PROTECTION/BONA FIDE SOLD ORDER (PPT) NO
PRICE PROTECTION/NET INVOICE (PRP) NO
COMMERCIAL
GM BUSINESS CHOICE PROGRAM NO
TRUCK STOCKING (TSI) NO
MOTOR HOME INCENTIVE (R7Y) NO
RECREANTAL V VEHICLE INCENTIVE (R6J) NO
SCHOOL BUS/SHUTTLE BUS/AMBULANCE UPFITTER INCTV (R6H) NO
DEMONSTRATION - LIGHT DUTY DLR (DEM/DEE) NO
DEMONSTRATION - LIGHT DUTY SVM (DES) NO
LIMOUSINE/FUNERAL COACH (R6B/FSV) NO
FUNERAL, HOTEL/RESORT & FOR HIRE INC (R6S/LVY) NO
RETAIL PREFERRED EQUIPMENT GROUPS YES

*VEHICLES WITH GMDRAC ALLOWANCE "FKL" ARE NOT ELIGIBLE.

9. OTHER PROGRAM GUIDELINES:

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