GM Employee Discount - Is it really a good deal?

Automakers and dealers are anxious to sell 2008 models and make way for the 2009s. With car and truck sales down and the end of summer fast approaching, we have seen a wide range of sensational incentives advertised, from traditional rebates to buy-one-get-one offers. Among the hyperbole-laden ads, General Motors’ Employee Pricing for Everyone has attracted much attention, resurrecting a previously successful strategy.

The idea is simple: give the public the same price on cars offered to employees. Rather than a complicated matrix of incentives, this boils down an enticing offer into a tidy sound bite. But is it a good deal?

How it works
The Employee Discount for Everyone is available at participating Buick, Chevrolet, Cadillac, GMC, Hummer, Pontiac, Saab, and Saturn dealers on virtually all remaining 2008 GM vehicles in stock. In addition, a few 2009 models are eligible, including the Chevrolet Cobalt and HHR; Pontiac Vibe and G5; and Cadillac CTS. (Of these 2009 models, only the HHR meets our standards to be Consumer Reports recommended. We do recommend several 2008 GM models.)

The program started on August 20 and runs through the Labor Day weekend to September 2, 2008.

Shoppers can look on the various GM-brand Web sites to check the Employee Price or at GM.com. Both retail (MSRP) and Employee Price are listed for comparison, along with additional national and regional customer-cash rebates. At dealerships, special stickers present this same information.

What is the value of the deal?
For our report on "Driving a great, end-of-summer new car deal," Consumer Reports Auto Price Service tracked 2,014 national incentives across all vehicle variations this month. Since large trucks and SUVs are stuck in a sales downturn (no surprise considering the gasoline prices these days), we found that the size of the incentives often varies in direct proportion to the size of the vehicle. For example, Hummer has the highest average combined customer and dealer incentives per model at $5,400. (For a complete breakdown, read "New car incentives by brand.")

To assess the Employee Pricing program, we ran the numbers on several vehicles, comparing informed negotiation against advertised employee pricing. In these examples, we found the Employee Pricing to be a good deal.

For the analysis, we pitted the advertised GM offers on sedans, SUVs, and pickup trucks, against the Consumer Reports Bottom Line Price (which factors invoice price, rebates, hidden dealer incentives, and dealer holdback) then added a slim 2-percent dealer profit. For these example models, we found the Employee Pricing to be, on average, $345 better than traditional negotiation.

The example below illustrates how the GM Employee Discount for Everyone pricing compares to aggressive negotiation. The GMC Acadia is a Consumer Reports-recommended vehicle.

GMC Acadia AWD SLE-1

Traditional negotiation		GM Employee Discount
MSRP*	$32,885	MSRP*	$32,885
Invoice	$30,060	GM Employee Price	$29,981
Bottom Line Price	$28,330	Customer Rebates	$1,500
Estimated Sale Price	$28,897	Sale Price	$28,481
Savings against MSRP	$3,253	Savings against MSRP	$4,404
Savings against MSRP	10%	Savings against MSRP	13%

* Includes destination charges

Bottom line
As this analysis revealed, there are indeed good end-of-summer deals to be had on new cars. With any car purchase, it pays to check the numbers to see if they add up to a good deal and to reveal what potential there may be for further negotiation.

Driving a hard bargain is only one part of the equation. Remember, a great deal on a bad car is no deal at all. Focus first on creating a list of good, safe, reliable cars with average or better projected owner costs (a quick process using our New Car Selector). Then look to reading road tests, taking test drives, and reviewing the numbers.

We maintain a list of Best New Car Deals on CR-recommended models that can highlight standout national offers. To truly arm yourself for negotiation, a complete pricing and incentive breakdown is available in our new- and used-car price reports.

—Jeff Bartlett

Vehicle recalls affect Ford, GM, Hyundai, & Toyota

There have been a few significant recalls announced in the past few weeks affecting Ford, GM, Hyundai, and Toyota. If you own any of the vehicles listed below, you will be contacted by the manufacturer with the information on what you need to do.

2005-2006 Ford F-150 & Lincoln Mark LT

Ford is recalling over 605,000 F-150 and Lincoln Mark LT pickups equipped with the 5.4-liter, 3-valve engines due to a problem with a hose in the braking system, which could swell over time and become detached. Once the hose is detached, the braking system will continue to work with power assist, but eventually the fluid reserve will be depleted.

Owners will be notified by mail or they may contact Ford at 1-800-392-3673. Dealers will begin to replace the hose in early July.

2006-2008 Hyundai Sonata

Hyundai is recalling over 393,000 Hyundai Sonatas due to a defect in the passenger air bag. The system is supposed to disable the right-front passenger seat air bag when it detects the presence of a child restraint or child seated there, but a misclassification may cause the air bag to not inflate if a small adult is occupying the seat.

Dealers will verify the malfunction, then remove the right front seat cushion and send it out for evaluation and repair.

The recall will begin around May 26, 2008. Owners may contact Hyundai at 1-800-633-5151.

2003-2004 Pontiac Vibe, Toyota Corolla, and Toyota Matrix

Toyota and GM are recalling over 660,000 Vibe, Corolla, and Matrix models due to a problem with the power windows. Bolts in the driver and front passenger-door may loosen and cause the glass to separate from the window and possibly shatter during operation.

Dealers will replace the door glass bolts with new ones free of charge. Owners may contact Toyota at 1-888-270-9371.

2008 Toyota Highlander and Highlander Hybrid

Toyota is recalling over 90,000 2008 Highlander and Highlander Hybrid SUVs due to a problem with the seatbelt in the third-row seat. When using a rear-facing car seat, the seat belt cannot be properly secured and may spool out during normal driving.

Owners will be notified by mail or they may contact Toyota at 1-800-331-4331. Dealers will install a new seat belt component free of charge.

To see if your vehicle has been involved in a recall, check out the National Highway Traffic Safety database at www.safercar.gov.

—Liza Barth

Your opinion wanted - GM takes questions to the public

Like any large corporation, General Motors spends a lot of time and money conducting focus groups—talking to its customers and potential customers in focus groups to find out what they want.
This year at the New York auto show, it seemed the company was doing more than usual.

First, at Wednesday morning, GM held a press conference to introduce the Pontiac Solstice Coupe and two new versions of the Australian-built Pontiac G8. As soon as you name any car G8, you signal the world that you're running out of ideas for car names. If that weren't bad enough, the company admitted as much when it announced an Internet contest to name the latest version of the G8, a two-door, car-like pickup truck, very similar in concept to the Chevrolet El Caminos from the 1970s and '80s. Personally, I'm not sure what's wrong with the storied name El Camino, beyond the potential for brand confusion. Or if that has too much (ahem) baggage, why not Caballero, the name of the GMC version of that trucklet, which no one will remember. (GM is working to merge GMC and Pontiac dealers anyway.) Rapper Fifty Cent, who introduced the car, suggested his given first name, Curtis. If you'd like to make a different suggestion, visit GM's "Tame the Name" contest Web site at: www.pontiac.com/namethiscar.

If that weren't enough feel-good feedback, the company invited a group of perhaps 60 enthusiasts of the Chevrolet Volt to a "town hall" meeting in the afternoon and a group of company executives fielded detailed questions about the car. (Read: "Plugged in: Chevrolet Volt.")

The visitors came from those who left comments at an independently operated Web site: gm-volt.com Many were tinkerers who own electric cars—sometimes several, and some that they have built themselves. Many are members of regional electric-vehicle clubs and are well versed in the challenges of building, owning, and driving electric vehicles (if not necessarily in mass production.)

These efforts follow on last years' GM press conference, in which the company asked showgoers to vote with colored balls for which of three microcar concepts they liked best.

All this is to say that GM is either trying very hard to do a better job of listening to its customers, or it has simply completely run out of original ideas of its own. We're not sure which.

To be fair, GM's vice president of global product development, Bob Lutz, has admitted the company underestimated the demand for hybrids. Put another way, before the Toyota Prius came out, GM was completely blind to the market among young, hip urban intellectuals for a car that got good gas mileage and made a social statement that its owner cared about the planet. Now it looks as though the company is aggressively trying to make up for lost time, marked by a slew of hybrid models coming to market and intriguing concept vehicles offering a glimpse at the potential road ahead.

Tell us what you think. Is GM asking the right customers now?

—Eric Evarts

See the 2008 New York auto show coverage.

Wintertime of our convertible discontent

We're working on a test group of four-seater convertibles for the May issue, just in time for the start of top-down season here in the Northeast.  But we're driving the cars around now, and it's gray, dreary, and cold outside. And on this particular day, it's raining hard enough to make Noah consider taking the Ark out of retirement. (Unlike other magazines or Web sites, we don't jet off to some sunny place with a fleet of borrowed ragtops to write a story.)

Then again, most of the cars in this group have folding hardtops. Part of the spin surrounding these complicated convertibles is that hardtops provide better interior isolation from noise and harsh weather. So despite the winter doom and gloom, we should be as happy as (hard-shell) clams, right?

Maybe not. Things started badly, right from when we picked up our Pontiac G6 GT at the dealer. The salesman took care to demonstrate the luggage blind; like most modern convertibles, you need to have a sliding cover in place in the trunk before the car allows you to fold the power top. This reduces trunk space, but it also prevents you from crushing your luggage with the top, or the top with your luggage. He lifted up the trunk lid, stuck his arm in to show how the blind worked - and then the heavy deck lid closed down on his arm. Seems our deck lid couldn't keep itself up. (We eventually got that fixed. And the salesman's arm was fine.)

Then the noises settled in. When it was cold, multiple noises and creaks came from the hardtop. Our G6 wasn't the only convertible in the fleet to do this; loud, nearly-continuous creaks came from the interface between the roof and windshield header in our hardtop Chrysler Sebring Limited convertible, as well. That's assuming you can hear them over the wind noise, suspension groans, or the luggage blind rattling around in the trunk. One logbook comment says that the Sebring is "noisier than a pickup truck loaded with plastic pipe."

The Sebring had another annoying problem. Like some other coupes, the power windows drop about an inch when you open the door. This lets cabin air out as you slam the big door, making it easier to shut the frameless glass against the weather stripping. But the windows developed a mind of their own - or maybe just plain lost it. Sometimes the window wouldn't automatically go all the way up. Other times the window seemed to freeze in place, so you had to slam the door to get it to close fully. Slamming the window across the weather stripping makes a sound like something is going to break. And once when parked and running, all four windows dropped about 3 inches on their own, as if the top was about to lower on its own.

So, are hardtops where it's at, modern convertible-speaking? One big plus: they do allow designers to put in larger rear windows. Our soft-top Mitsubishi Eclipse convertible is at the opposite extreme. The Eclipse's rear window is a narrow slit. Even backing it out of my narrow garage is scary and almost requires a seeing-eye dog to pull off this mundane task.

Like many things in the automotive world, how well a technology works depends on its execution. The Jaguar XK convertible we tested had a soft top that was nearly as quiet as some coupes. Our Saab 9-3 2.0T soft-top convertible isn't particularly noisy, and it has a decent sized rear window.

One last thought: even though it makes a car more desirable to rent during a Florida vacation, turning a crummy sedan into a crummy convertible doesn't make it better. 

Would someone please order a batch of warm, sunny weather? Soon. Life is too short to have a bunch of convertibles in the garage and lousy weather overhead. Especially when top-up is when they are least enjoyable.

—Tom Mutchler 

2009 Pontiac Vibe pricing—starts under $16k

Pricing for the 2009 Pontiac Vibe will start at $15,895 when it goes on sale in February 2008. The redesigned Vibe hatchback marks the return of the sporty GT variant ($19,495) and available AWD ($19,495).

Mechanically identical to the Toyota Matrix, the new Vibe features more powerful four-cylinder engines: a 132-hp, 1.8-liter and a new high-output, 158-hp 2.4-liter. The best news is that the more powerful unit delivers 162 lb-ft of torque, making up for a significant shortfall of the previous model. The larger engine will be optional on the base Vibe, but standard on the AWD and GT versions. A four-speed automatic transmission is standard on the AWD, but the 2.4-liter base or GT models have the option of choosing either a five-speed manual or a new five-speed electronically controlled automatic transmission.

The Vibe exterior retains a familial resemblance to the first-generation version, and clearly differentiated from the Toyota. The AWD version comes with a standard roof rack and the GT has a unique front fascia. The interior again features fold-flat seats with protective backing for cargo duties and a 115-volt power outlet in the dashboard. GT models include leather-trim seats, steering wheel, and shifter.

Standard safety features include electronic stability control, active head restraints, and six air bags.

—Liza Barth

For more photos, visit our LA Auto Show coverage.
Discuss Pontiac in the Cars forums.

200,000-Mile Club keeps on going and going

When we launched the 200,000-Mile Club forum inviting drivers to share stories and tips about keeping a car for the long haul, we frankly had no idea what we were in for. Response has been phenomenal, with more than 260 different discussions. We've read a lot of entertaining and inspiring stories, with high-mileage drivers sharing some great advice.

Many forum participants say they've made it far beyond 200,000 miles, and Herman Goetjen wrote to suggest we up the ante with a 300,000 and 400,000 mile club. If we do, Scott Gibbs can join. He reports having 450,000 miles on his Mercedes-Benz 240D, which, sadly, needed its first new clutch recently after just 29 years of service.

Do you have a story or advice to share? Join the unofficial club! Share your experience in the 200,000-Mile Club forum, and if you'd like to show off your well-traveled ride, you can post a photo at the 200,000-Mile Club photo gallery. Please be sure to include the year, make, model, and mileage when you submit your image.

In the meantime, below are some of our favorite posts.

--Jim Travers

I donated my 1994 Bonneville last summer, still running fine at 471,000 miles. It had the original engine, CV joints, A/C, muffler, radiator, and the steering was still tight... Best of all, my depreciation costs were only about 5 cents per mile, so I smiled all the way to the bank.
--Jim Roberts

I bought this [Maxima] brand new and continue to use it as my main vehicle. I have only had to replace the radiator after a rock put a hole in it. I change the oil every 5 to 7k miles... I don't believe I have done anything special to maintain it this long other than that paying attention to the car...
--Rod Worley, 1996 Nissan Maxima, 400,127 miles

In spite of a less than luke-warm review by CR in 1977, I bought a new Mercedes-Benz 240D. CR complained that the turn signal lever fell off the M-B they drove and it cost $300 to fix. My car is driven daily to work and has 450K miles on it. The engine has never been worked on and most of the parts are still original. Learning the required service intervals and using them can't be understated if you are intending to drive one car a long time.
--Scott Gibbs

My secret to longevity is diesel! My (and wife and sons) last five cars have been Mercedes 300 Diesels, all with 170,000 - 245,000 miles... Always use synthetic oil, change every 5,000 miles. Always check your gas/diesel mileage at each fill up; the first sign of a problem is often increased fuel use. Don't scrimp on parts. Always buy OEM from the dealer, it may seem expensive but it's a lot cheaper and safer in the long run. But most important: treat the car as if it has to last you for the rest of your life and it might!
--Peter McDonald

From the logbook: Pontiac G6 V6

Remember when Pontiac ads used to shriek "We Build Excitement"? Those ads rang true in the days when you could still get a Firebird Trans Am, but that slogan lingers now like a forgotten promise.

Nowadays, all the rear-wheel "excitement" Pontiac can muster is with its Solstice roadster. And even with its slick good looks, the anemic engine, poor gear ratios, and other shortcomings caused us to say that it was "disappointing as a sports car." (In fairness, the turbocharged GXP version is a whole lot more exciting, and the brand has promised a 2008 Torrent GXP.  Really.)

So, until the rear-drive G8 sedan goes on sale, Pontiac delivers four-door "excitement" with the G6, available in coupe, retractable hardtop convertible, and sedan forms. We tested both a 4-cylinder and V6 GT sedan. Our GT, the jazzier of the duo, rang in at $25,989 with a heavy load of options. It's not exciting but it's at least adequate. Read on for candid notes from our testers' logbook:

"Engine is quite powerful and smooth, but it sounds unrefined."

"Good handling and cornering grip."

"Stiff unsettled ride with no benefit to handling agility."

"The steering wheel is too large and on-center feel is vague."

"Seat cushion is too thin and hard, making the seats very uncomfortable."

"Lots of wind noise from driver's door."

"There's nothing about the steering and suspension that suggest 'GT.' Where's the sportiness or grand touring feel?"

"Interior is mostly cheesy with sharp, unfinished edges."

"Switchgear is unbelievably cheap: the volume and tuning knobs feel like they're going to come off in my hand."

"XM reception is among the best."

"Steering wheel radio controls are almost perfect; you can scan presets and go station by station."

"A real easy car to live with."

As you can see, the G6 is ho-hum, or average at best. And owners agree, as it scored average in our reliability and owner satisfaction surveys. It's a car for people drawn to its styling, feature content, and who likely have some brand, or corporation, loyalty. If GM's goal was to aim for mediocrity, it nailed a bullseye. Shame it doesn't meet the higher standards set by the Saturn Aura, built on the same platform.

--Mike Quincy

Solstice/Elise: Taking the easy road?

Sometimes in the car-enthusiast world, critical mass shifts to favor one or another car. Endless hype, appealing styling, hopeful potential... All these combine to make a car worshipped in enthusiast forums, often before it hits the road, or most forum posters have even driven the thing. Enthusiast magazines further the hype, reporting on the car after driving it in an exotic location while being wined and dined by a proud parent company.

But Consumer Reports skips all of this. We certainly read all the other automotive reviews and forums. But then we actually buy the car and live with it.

Two roadsters starkly bring this to mind. It makes sense that the Lotus Elise and Pontiac Solstice would appeal to enthusiasts; cars built mostly for the joy of driving have a certain purity of purpose to many. In the case of the Lotus, the British car press (which produces some of the best car magazines out there) had been fawning over the homegrown Elise for almost 10 years. The car was portrayed here as forbidden fruit, the exotic European that the American driver couldn’t own. And when it became available, most magazines followed course and praised the car.

Then we bought one. (It took some doing--the car was in high demand, and one got sold right from under our nose when we went to pick it up.) Sure, the Elise is really fast and handles like a go-kart. It carved through our avoidance maneuver with ease, reaching a high speed, but once past that critical point of tire adhesion, the car spun out quickly and was very hard to control, even by our expert drivers. Living with the bare-bones car was tough, too. And we published that.

Lotus owners, or want-to-be-owners who had read the other reviews, blasted us in response. It was suggested that we didn’t know how to drive the car (despite our drivers who have raced and been driver instructors) or that we were only worried about cup holders and trunk space. Never mind that there are some cars (like a Porsche Boxster or the dearly departed Toyota MR2 Spyder) that offer the Lotus’ sprightly responsive feel but are also livable, thoroughly-developed cars. And we’ve driven all of them on our dedicated track.

A similar thing exists with the Solstice. The car had been on the show circuit for years, building cred among enthusiasts because GM was creating a purpose-built RWD platform for a sports car. This was a hot car when we bought it. (Despite the launch hype, we managed to find one for MSRP.) Again, we don’t care if it lives up to expectations — only if it is a good car. While it handles well and (subjectively) looks great, it isn’t that much fun to drive. It’s almost as if the Solstice was developed by folks who never lived day-in, day-out with the car.

After its lukewarm review, we’ve again been attacked for anti-GM bias. Someone with a calculator on Autoblog figured out that at 3,000 rpm, the Solstice has more horsepower and torque than the Civic Si--so it is obvious (!!) that the Solstice has more usable power. (Never mind that the Solstice is reluctant to rev and sounds strained at 3,000 rpm while the Civic Si is perfectly happy at 5,000 or even 7,000 rpm, or that this poster doesn’t seem to have driven either car, or that nearly every other review chides the Solstice’s Ecotec four-cylinder for being a reluctant dance partner.)

The moral of the story: It would have been more convenient for us to take the easy road and say that the Elise and Solstice were better than they are. It would have created less negative press on enthusiast forums. But it would have been wrong. We buy the cars. We drive the cars. We tell you what works or doesn’t work--whether it’s easy or not.

--Tom Mutchler