General Motors Corp. will end an employee-discount offer that boosted U.S. sales, cleared out this year’s models and paved the way for GM to reduce prices on their 2006 replacements.
GM will let the discounts run out Monday, when the company plans to announce prices for the 2006 model year, spokesman Jeff Kuhlman said Wednesday. Ford Motor Co. and DaimlerChrysler AG’s Chrysler, which began offering employee discounts to all buyers after Detroit-based GM’s sales soared 47 percent in June, said they don’t plan to stretch their offers into August either.
General Motors, after a $1.1 billion first-quarter loss, used the discounts to halt a decline in U.S. sales and market share and make room for 2006 models coming in September with reduced prices and more features.
An immediate challenge will be to sustain gains against Toyota Motor Corp. and other rivals when the discounts have expired and vehicle supplies are thin.
