As if GM dealers weren’t depressed enough already, the General has told them that it will delay incentive payments next in an effort to save some cash. The payments for dealer cash, customer cash and other incentives will now be delivered on Dec. 11th. They were originally planned to arrive Nov. 28th.
We’re trying to improve cash flow across the whole company and looking at everything,” Mark LaNeve, GM’s vice president of North American sales, service and marketing, said in an interview with Automotive News. “One area where there’s a lot of cash outflow is between us and the dealers.”
LaNeve said that letters were sent to dealers today but declined to comment on the amount of delayed payments. Edmunds says that GM spends about $3,600 per unit in incentives.
“Of all the things we looked at, this was the least disruptive to dealers,” LaNeve said.