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GM Offers Gas Price Protection to Consumers in Florida and California


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GM Offers Gas Price Protection to Consumers in Florida and California

Regional Program Caps Gas Prices at $1.99 per Gallon for Eligible Vehicles OnStar Technology Key to GM's Unique Offer

ALPHARETTA, GA – GM today announced its "GM Fuel Price Protection Program." This regional program caps what consumers pay for gas at $1.99 a gallon when they purchase select 2006 and 2007 GM full-size utilities and mid-size cars.

"This program gives consumers an opportunity to experience the highly fuel-efficient vehicles GM has to offer in the mid-size segment," said Dave Borchelt, GM Southeast regional general manager. "It helps protect consumers against rising fuel prices by providing them with a partial credit for their fuel purchases for one year."

The credit is based on the consumer's estimated fuel usage each month. Fuel consumption is calculated based on the mileage driven, as recorded by OnStar and the EPA city fuel economy mileage rating for the vehicle.

Using the calculation of the consumer's estimated fuel usage each month, they will be credited for the difference between the average price per gallon of premium fuel in their state, as published by the Automobile Association of America (AAA), and the $1.99 gas price protection cap.

The credit will be applied each month to a pre-paid card, which will be issued to the consumer. The credits are good until December 31, 2007 and may be used for any type of purchase at any location that accepts MasterCard. There is no mileage limitation.

"This is a unique offer that only GM is making," said Mike Jackson, GM North America vice president, Vehicle Brand Marketing/Advertising. "This program leverages some of our greatest strengths, including great new GM vehicles, often with some of the best fuel economy ratings in their class, and leading edge OnStar technology. To top it off, we're now offering consumers in Florida and California protection against rising fuel prices."

A California resident who purchases a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would realize an estimated $103.75 monthly credit, based on the current average premium fuel price of $3.65/gallon (as of May 15). A Florida resident who purchases a 2006 Buick LaCrosse with the standard V-6 engine and drives about 1,000 a month, would see an estimated monthly credit of $60, based on the current average premium fuel price of $3.19/gallon in that state.

"The services offered by OnStar are another example of how GM is using technology and innovation to deliver added value to its customers," said Chet Huber, president, OnStar. "The diagnostic e-mail service is a GM-exclusive and enables only GM to offer consumers a credit for their gas purchases based on the actual mileage that they drive ."

Beginning on May 25, consumers will be able to go to a special web site (www.fuelprotection.com) to calculate their potential savings based on their vehicle selection.

To participate in the program, consumers who reside in California and Florida must purchase or lease and take delivery of an eligible vehicle between May 25 – July 5, 2006 and enroll in the OnStar Vehicle Diagnostics service. The diagnostic service is a GM exclusive service that automatically runs hundreds of diagnostic checks on key vehicle operating systems and then sends a monthly e-mail to subscribers about their vehicle.

Eligible vehicles in California include the 2006 and 2007 Chevrolet Tahoe and Suburban (one-half ton models only), Impala and Monte Carlo; GMC Yukon and Yukon XL (one-half ton models only); HUMMER H2 and H3; Cadillac SRX; Pontiac Grand Prix; and Buick Lucerne.

Eligible vehicles in Florida include the 2006 and 2007 Chevrolet Impala and Monte Carlo, Pontiac Grand Prix and Buick LaCrosse.

The vehicles selected for this program were chosen because of their outstanding fuel economy and great consumer appeal. The 2007 Chevrolet Tahoe leads the full-size utility segment in fuel economy and has a two-wheel-drive EPA highway estimate of 22 mpg. The Chevrolet Suburban and GMC Yukon XL have EPA highway estimates of 21 mpg.

GM's mid-size cars also offer very competitive fuel economy with the Pontiac Grand Prix achieving an EPA estimated 30 mpg highway. That is better than a comparably equipped Honda Accord 6-cylinder (29 mpg highway). The Buick LaCrosse also has an estimated highway mileage of 30 mpg (with standard V6 engine).

Advertising primarily will be executed divisionally and regionally in each market. Divisional advertising will include television, radio, print and interactive. It will focus on the outstanding fuel economy of GM vehicles and the gas price protection offered only by GM. There will be some corporate print, radio and interactive advertising to kick off the program. Corporate advertising begins on May 25, and divisional/local advertising begins on May 26

Bruce

2023 Cadillac CT4-V Blackwing

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Here is a short email conversation we had in the office today about it:

From: <withheld>

Sent: Wednesday, 24 May, 2006 12:10 PM

Subject: The auto wars continue!

I must say this is an innovative approach. I hope the price of gas goes to $4.00 a gallon and it bankrupts them.

<article regarding this program was copy/pasted from the AP>

_____________________________________________

From: me

Sent: Wednesday, May 24, 2006 12:57 PM

Subject: RE: The auto wars continue!

Comparison:

Chevy Tahoe: E85 capable and 16/22 EPA mileage

Toyota Sequoia: non-E85 and 15/18 EPA mileage

Ford Expedition: non-E85 and 14/19 EPA mileage

Nissan Armada: non-E85 and 13/19 EPA mileage

What would you rather have on the road? Personally, I'd rather folks buy the Tahoe.

I'm not trying to justify the purchase of a large SUV, just pointing out that as folks cross-shop large SUVs (as we know they will do), we have a much better friend in the Tahoe than we have in any of the others, and I'm for any incentive that gets folks into it vs. one of the other models that won't run ANY alternative fuel.

Jason(2001 STS, White Diamond)

"When you turn your car on...does it return the favor?"

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I have to admit, this isn't a use of ONSTAR that I might have forseen.

I wonder, from GM's point of view, how this compares to 0% financing.

Any number crunchers here?

Regards,

Warren

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There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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First year of service is free with purchase. I think after that it depends on which package you prefer; base package is $16.95 a month. The packages differ by whether you want minimal emergency only service or to call ONSTAR for driver directions and similar convenience services costs $34.95/month.

http://www.onstar.com is the website for info.

Bruce

2023 Cadillac CT4-V Blackwing

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In effect, I don't see a big difference between this program and local dealer offers for free gas for a year, except that it's at the corporate level instead of the dealer level. There's a local dealer running ads on TV "afraid of an $80 gas bill for your SUV, don't worry, Don Hester's paying!"

Uh, hello, that's only for a year boys and girls. After that, YOU are paying. If you can afford it, you can afford it. If you can't, you can't. You've got to know that up front. I'm surprised these tactics work at all.

Jason(2001 STS, White Diamond)

"When you turn your car on...does it return the favor?"

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Here is a short email conversation we had in the office today about it:

From: <withheld>

Sent: Wednesday, 24 May, 2006 12:10 PM

Subject: The auto wars continue!

I must say this is an innovative approach. I hope the price of gas goes to $4.00 a gallon and it bankrupts them.

<article regarding this program was copy/pasted from the AP>

_____________________________________________

From: me

Sent: Wednesday, May 24, 2006 12:57 PM

Subject: RE: The auto wars continue!

Comparison:

Chevy Tahoe: E85 capable and 16/22 EPA mileage

Toyota Sequoia: non-E85 and 15/18 EPA mileage

Ford Expedition: non-E85 and 14/19 EPA mileage

Nissan Armada: non-E85 and 13/19 EPA mileage

What would you rather have on the road? Personally, I'd rather folks buy the Tahoe.

I'm not trying to justify the purchase of a large SUV, just pointing out that as folks cross-shop large SUVs (as we know they will do), we have a much better friend in the Tahoe than we have in any of the others, and I'm for any incentive that gets folks into it vs. one of the other models that won't run ANY alternative fuel.

I have to wonder why anyone would 1) Wish that gas would go higher than it is and 2) Wish it would bankrupt GM.... They obviously have no clue as to the catastrophic effect that would have on the economy. I have to suspect that this individual does not earn their living in the US manufacturing sector...

Kevin
'93 Fleetwood Brougham
'05 Deville
'04 Deville
2013 Silverado Z71

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This person is, in fact, an owner of two Hondas, a member of the National Guard, and employed as a civilian on a US Army installation (as am I, save for the Honda ownership). He's of the opinion that US manufacturers are shooting us in the foot and wishes they would just disappear. I'm the sole holdout in the office who points out the dramatic contributions they make to the economy through supplier contracts, retired employee support, and trickle-down effects that no Japanese maker can begin to aspire to.

Jason(2001 STS, White Diamond)

"When you turn your car on...does it return the favor?"

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This person is, in fact, an owner of two Hondas, a member of the National Guard, and employed as a civilian on a US Army installation (as am I, save for the Honda ownership).

He's of the opinion that US manufacturers are shooting us in the foot and wishes they would just disappear.

Uh, what planet is this guy from...

'93 STS.. opened, dropped, wide...fast.

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This person is, in fact, an owner of two Hondas, a member of the National Guard, and employed as a civilian on a US Army installation (as am I, save for the Honda ownership). He's of the opinion that US manufacturers are shooting us in the foot and wishes they would just disappear. I'm the sole holdout in the office who points out the dramatic contributions they make to the economy through supplier contracts, retired employee support, and trickle-down effects that no Japanese maker can begin to aspire to.

That guy sounds like a total cretin...

Kevin
'93 Fleetwood Brougham
'05 Deville
'04 Deville
2013 Silverado Z71

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He is, in fact, a member of the armed services who fights his *smurf* off in Iraq so that we are free, who happens to have a different opinion about domestic auto makers than we. Let's keep our eye on the ball here.

Jason(2001 STS, White Diamond)

"When you turn your car on...does it return the favor?"

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Regardless of his employment, people with that mentality infuriate me with their anti-American views...after all, how are we supposed to earn a living if all the manufacturing base is gone in this country? We can't all flip burgers for a living...

Kevin
'93 Fleetwood Brougham
'05 Deville
'04 Deville
2013 Silverado Z71

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