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

    Chevrolet-GM-Dealer-Sign-Re.jpg
    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:

    A. IN-SERVICE DATA (I.E., SALE TO DEALERSHIP AS DELIVERY TYPE
    '025') MUST BE RECEIVED PRIOR TO PAYMENT. ALSO, DEALER
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