Advertising and Pricing for 2009 Cars and Trucks

It’s a Vehicle Buyer's Market as Automakers Struggle with Economy

Dec 19, 2008

Here's a look at the advertising and pricing that General Motors, Ford and Chrysler marketers are using to cope with the worst new model introductions in decades.

While General Motors and Chrysler begged for multibillion dollar bailouts to save them from bankruptcy, America’s big automakers pulled out their marketing tricks to sell 2009 model vehicles amid the worst economy in decades. At the end of 2008, it was a buyer’s market for the few buyers who have money.

In November and December 2008, the U.S. House of Representatives, the U.S. Senate, President George W. Bush, the United Autoworkers Union and the chief executives of General Motors, Chrysler and Ford traded threats and warnings about a massive collapse of the auto industry.

In the accompanying panic, automakers strayed from their traditional new model marketing strategy, emphasizing price reductions at least as much as the new features in their 2009 models. With many consumers in worse financial shape than they were, the manufacturers’ suggested retail prices (MSRP) were pushed aside early.

General Motors Red Tag Sales

General Motors, which was reportedly in the greatest financial danger, launched a mammoth "red tag" sales campaign for both leftover 2008 models and new 2009 vehicles. It advertised:

"The price on the tag is the price you pay. See some red. Save some green. Celebrate with big savings on most 2008 and 2009 vehicles." The red tag sale covered the entire General Motors vehicle family, including Cadillac, Hummer, Chevy, Buick, Pontiac, GMC, Saturn and Saab The advertising never really explained the rationale or appeal of a red tag, but could be interpreted to mean there was no haggling on price at the dealership.

Like some hard-selling, direct marketing TV advertisers, General Motors promised even more. It advertised additional discounts on most GM models to military personnel, college seniors, recent graduates and graduate students. It offered added savings to GM employees and their eligible family members and friends, as well as discounts to General Motors supplier employees.

Cash rebates were a major part of the red tag campaign. For instance, the red tag price on a 2009 Cadillac CTs was $1,937 less than the $39,880 MSRP and that came with an additional $3,000 cash rebate, bringing the actual December price to just $34,942.

Ford Employee Pricing Plus

Ford, which eventually said it did not need a government bailout, tried to push sales by bringing back the well-tested employee price strategy. It advertised:

"Now you pay what we pay…Your key to unbelievable savings has arrived. Announcing Ford Employee Pricing Plus. And the plus is what sets us apart."

As part of the employee pricing incentive, Ford offeried $1,000 cash back on some 2009 vehicles. It also advertised special discounts for military personnel and college gradates, as well as company employees, retirees and family members.

Toyota Toyotathon

Although Chrysler appeared to be the financially weakest of the three major American automakers, its advertising of 2009 vehicles was not as focused on savings as those of GM and Ford. It offered discounts on most models, but it lacked anything like GM’s "red tag" or Ford’s "employee pricing" themes.

Toyota, meanwhile, used its "Toyotathon" to promote savings on its Camry and other models, offering $1500 cash back deals. The Toyota website also marketed leases more than its American rivals did.

Mitsubishi advertised "a phenomenal deal like 0.0% APR for 48 month on a 2009 Outlander or $2,000 factory rebate on a new 2009 Galant."

In 2008, the carmakers got caught in the volatile swings in gasoline prices. With motorists facing $4 per gallon prices they had to stress gas efficiency. By year’s end, motorists were less concerned with that factor as gasoline prices fell well below $2.

The copyright of the article Advertising and Pricing for 2009 Cars and Trucks in Advertising is owned by Carroll Trosclair. Permission to republish Advertising and Pricing for 2009 Cars and Trucks in print or online must be granted by the author in writing.