Employee Pricing Primer

Chrysler, Ford, and General Motors are running aggressive sales campaigns touting employee pricing on the majority of their cars and trucks. GM started the feeding frenzy at the beginning of June, by offering the same price that company employees pay for vehicles to all consumers nationwide. Typically, employees pay 2-3 percent under the dealer’s invoice price for a new car, and can apply any applicable rebates or dealer incentives to that low fixed price. As a result of GM’s Employee Pricing for Everyone sales campaign, the company saw a huge spike in sales – by nearly 50 percent year-over-year – encouraging Chrysler and Ford to jump on the bandwagon for July, and prompting GM to extend its successful program by a month. The programs could extend through the end of August if Detroit’s traditional Big Three see a continued need to move the metal.