• Brandweek, Tuesday, November 15, 2005 2:15 PM

After suffering a 23 percent drop in sales on October after dumping a popular promotion that extended an employee discount to all buyers, General Motors is back on the discount wagon. The carmaker announced that it would introduce a "Red Tag Sale" in which a flat discount would be offered to all buyers for most 2005 and 2006 Buick, Chevrolet, GMC and Pontiac cars and trucks through Jan. 3. However, popular sellers like Pontiac Solstice, Chevrolet Corvette and the just-launched Buick Lucerne will not be included in the promotion. "The pricing for Red Tag is a formula, similar to the employee discount," said GM spokesperson Deborah Silverman. The new discount is basically the supplier price, or the price offered to employees of GM suppliers. "We have three price points: sticker, special price for GM employees, and the supplier price which is between them," one dealer explained. The effort is being supported by a network television, print, radio and interactive push that began yesterday.

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