In a move to spark sales of Chevrolet and GMC, General Motors Co. has entered into a partnership with Costco Wholesale Corp., reports Automotive News. Until Jan. 3, 2012, Costco members will have the option of purchasing a new Chevrolet or GMC light truck at select franchise locations. Members will enjoy a “GM Preferred Price.”
Milk, eggs, dog food, SUV
Costco Auto Program Vice President Rick Borg told Automotive News that Costco is predicting that club members will purchase more than 5,000 light trucks and SUVs during the GM partnership. As an added incentive, members who purchase a Chevrolet or GMC vehicle will receive a $500 Costco Cash Card.
A nationwide GM showcase
GM spokesman Jim Cain lauded the partnership as a positive step for GM, a “brand-awareness program” the likes of which the automaker has never participated.
“Costco provides a great showcase. It has millions of members nationwide,” Cain said. “This gives us the opportunity to put vehicles on display and reach people in a unique setting outside of a dealership.”
GM Preferred Price eligibility
The GM Preferred Price not quite as deep as an employee discount, but it’s close. Also, Cain noted that not all vehicles will be eligible. New 2011 and 2012 Chevrolet Silverado, Suburban, Tahoe and Traverse can be purchased with the discount, as well as 2011 and 2012 GMC Acadia, Sierra, Yukon and Yukon XL.
A benefit to the discount program is that Costco customers can use applicable GM rebates on top of the Costco discounted price. To receive the $500 Costco Cash Card, redemption forms and surveys must be completed by the customer after vehicle purchase. Aggregate survey results will be shared with GM.
“We’ll survey every member who makes a purchase,” Borg says. “We’ll ask them if they were planning to buy a GM vehicle. If they weren’t, we ask what they were planning to buy so we can figure out the conquest sales. In past promotions, conquest sales have exceeded 50 percent.”
Interested Costco members must register online with the Costco Auto Program. For additional information, visit the Costco Auto Program website or call 877-746-7422.