AUTOCITY OF PINECREST NEWS: July 2005

GM HAS NEW PRICING STRATEGY FOR '06 MODELS!

July 28, 2005 --AUTOMOTIVE NEWS

BY JEFFREY McCRACKENFREE
PRESS BUSINESS WRITER

So, General Motors Corp's. wildly successful, much-copied employee-discount sales program is coming to an end.
What's next?
Well, after luring shoppers into dealerships for two months on the notion of a great once-in-a-lifetime deal -- the popular discount plan that allowed the general public to buy GM cars or trucks at the employee price -- GM is now trying something completely different. It wants to get people away from the concept of a big monthly deal. Instead, it's moving closer to lower what-you-see-is-what-you-get pricing.
GM says its plan is to lower the sticker prices on about half of its 2006 cars and trucks. The automaker will offer more upscale features and better warranties on many models. It will have about 76 models for 2006, most of which will hit dealerships in August and September.
The idea behind this strategy, which GM is calling "value pricing," is to get the sticker price closer to the actual final price a consumer pays. That way, people don't automatically expect a big rebate and can more easily compare the prices of GM models with those of other automakers.
The move is a change from GM's previous strategy, which had been to keep sticker prices high, then pile on incentives of $4,000 or more per vehicle to attract buyers. The strategy seemed to work well for GM in 2001-03, but less so in the last 18 months. It also caused wild swings in sales, with strong months followed by steep declines.
GM and its dealers say a lower sticker price is important to the growing number of consumers who do their auto shopping on the Internet.
The change is part of GM's strategy to turn around its North American operations, which lost $2.5 billion in the first half of 2005.
GM's Buick division, whose sales are down 8.4% this year despite two months of nationwide employee pricing, is cutting prices, adding features and extending the warranty period on 2006 models to attract new buyers.
Buick prices will drop as much as $500 per model, or about 2%, and features valued at as much as $1,300, such as improved brakes, will be added at no extra cost to buyers. The division also is lengthening its warranty to 4 years or 50,000 miles from 3 years or 36,000 miles, he said.
"The goal is to be competitive on the actual sticker price. It's a logical goal. A lot depends on whether they price their 2006 models close to where people think they should be, close to what people thought was reasonable in June and July," said Tom Libby, senior director of industry analysis at J.D. Power.
Libby and others said one advantage of the new GM strategy could be that it extends no-haggle pricing into its selling strategy.
That was one reason the employee-discount program was so popular, said Rebecca Lindland, auto-sales analyst for the auto-research firm Global Insight.
"The no-haggle pricing worked well with Saturn, but GM had to get away from it when the product at Saturn was weak. People need to feel like they are getting a good deal and don't have to worry the guy with another dealer is getting a better price," she said.
The improved content of 2006 models would include options such as better brakes or longer warranties, GM dealers said.

Milka's So Fast - She's in Seven Cities at the Same Time

July 25, 2005 - CITGO Racing's winning female driver Milka Duno is currently

featured on billboards in seven U.S. cities as part of CITGO's on-going

Hispanic marketing initiative. Milka, sporting her red, white and blue CITGO

Racing uniform, can be seen "larger than life" by motorists in Miami,

Chicago, Tampa, Atlanta, Orlando, Boston and Houston.

Duno appears on a total of 46 billboards at multiple locations in each of

the cities. There are five in Miami, two in Houston, five in Orlando,

twenty-three in Tampa, two in Atlanta, three in Chicago and six in Boston.

"I live in Miami and it is a fun but different feeling when I'm driving and

all of a sudden I look up and see myself on a billboard," laughed Duno. "I

feel very lucky and honored that CITGO has given me the opportunity to

represent them both on and off the track."

“Milka Duno’s accomplishments are an example of what a Latin American woman

can achieve in a sport dominated by men,” said CITGO Petroleum Corporation

President and CEO Félix Rodríguez.

The billboards feature Duno in her CITGO Racing driver's uniform along with

her signature and the statement "YO CITGO A LA CARRERA" - which translates

to "I'm still running" or "I'm still in a hurry."

Duno adds, "Fans that have seen the billboard, when they spot me somewhere,

come up and say to me 'Yo CITGO las carreras por ti!' It's really a

compliment that they have seen the sign and that they are interested."

Duno competes with CITGO Racing for their second consecutive season in the

2005 Rolex Sports Car Series. She is the first woman in history to race in

the highest class - the Daytona Prototype - in the #2 CITGO Pontiac

Crawford. In her first season with CITGO Racing Duno became the first woman

in history to win a major sports car race in North America when she won the

2004 Grand Prix of Miami. Duno scored her second Rolex Series win at the

same venue seven months later. She recently scored her first win of the 2005

season and her third Rolex Series win at the Circuit du Mont-Tremblant in

Canada.

AUTOCITY CUSTOMER GALLERY

Harry Williamprhal---'05 Pontiac G6

Mrs. Portocarrero--'05 GMC Yukon XL

Paul Esepeth---'05 Pontiac GXP

Jeffrey Springer--'05 GMC Canyon

Facel Quetglas---'05 Pontiac G6

AUTOCITY SALES TAKING OFF!

Lomberto Perez, President of Autocity of Pinecrest.

Reprinted from The Pinecrest Tribune--July 11-24, 2005

By Linda Rodriguez Bernfeld

Eighteen months ago, Lomberto Perez, with the help of General Motors, took over Hallet Pontiac and renamed it AutoCity of Pinecrest. He also joined the Pinecrest Business Association.

Perez came to Miami as part of the Pedro Pan exodus from Cuba. He stayed in the Pedro Pan camp for a few months and then relocated to the state of Washington. He came back in 1973 and started selling cars at Courtesy Ford. He later sold car at Metro Ford, owned by his brother. In 1992, he became involved in the GMC Minority Owner program.

“They have a division that is like an investment partner,” Perez says. “They put up most of the money and the dealer partner puts in some.

”His first dealership was in Pomona, California. He was there for three years before selling the dealership and buying the former Armstrong Pontiac GMC in Homestead.

“When I took over Hallet, I sold the one in Homestead back to GM,” he says.

Since taking control, sales have picked up. In early summer, GM launched the GM Employee Pricing Program, which allows people to buy cars at the same discount that GM employees receive.

“That sparked the interest of the consumer,” Perez says. “Our traffic doubled and sales tripled.

”The length of the sale depended on inventory. The sale was designed to clear out the 2005 models and make room for the new 2006 vehicles. GM is introducing several new cars during the new model year.

“We have a lot of new models in Buick, Pontiac and GMC,” Perez says.

He adds that for a while GM lagged behind the competition. But now, the company is making up for lost ground.

“We have the brand new G6 that replaced the Grand Am,” Perez says. “You can get a two-door coupe or a four-door sedan.

”Another new model is the two-seat Pontiac Solstice, which Perez says will be “a tremendous success.”

“Initial orders were sold through television show The Apprentice,” he says. “One-thousand cars were sold in 30 minutes."

The Pontiac Torrent will make its debut soon, too. It’s an SUV similar to the Chevy Equinox, but more upscale.

Buick also is coming out with new cars to attract a younger demographic. The Buick Lacrosse replaced the Century and Regal, and the company is also introducing the Lucerne, a new model that will replace the Le Sabre.“The Buick line is becoming more stylish, more competitive and also more upscale to compete with Lexus,” Perez says.

The GMC truck line also will have new models for the 2007 model year.“Next year the entire GMC brand will be restyled,” Perez says.

The 2007 models will have completely new looks to make them more appealing to consumers.

More information on the new cars is available on the AutoCity blog at .For more information, call 305-238-4040 or visit .

THREE LUCKY FAMILIES RECEIVE NEW G6S FROM CRISTINA!

The Quetglass family was very grateful in being the recipients of this new Pontiac G6 given to them by the Cristina Show, Pontiac and Univision.

The Garza family was extremely happy with their new G6 given by Univision, Pontiac and the Cristina Show.

Univision and the Cristina Show visited Autocity of Pinecrest on Thursday July 21st to award three of the Pontiac G6s given to needy families on the show that aired June 27th.

The lucky families were: The Garza, The Quetglass and The Barrett families. Each of them received a brand-spanking new G6 because of their extraordinary contributions to their communities. The actual delivery of the cars was filmed by the Channel 23 news department and it was broadcasted the same day at 6 pm and 11 pm.

The families received the cars without having to pay one cent. Taxes and registration fees were included. Needless to say all three were elated with their new wheels.

2006 Buick Warranty Extension 4/50,000!

J.D. Power and Associates has ranked Buick among the industry’s best in both

Initial Quality and, most recently, Vehicle Dependability. Buick is serious

about quality, and we will stand behind our quality rankings. Today I’m

pleased to announce that all 2006 Buicks will be covered by a comprehensive

four-year/50,000-mile Bumper-to-Bumper warranty.

The extension of our Bumper-to-Bumper warranty lines us up with other premium

brands like Lexus, Acura, and Jaguar. It is aimed at maintaining high

customer satisfaction levels and is convincing evidence to our current and

potential customers that we stand behind our quality. It is another step in

our effort to close the gap between Buick’s actual quality and perceived

quality by telling Buick’s “true” quality story.

You will begin to see this change reflected on window stickers on all new 2006

Buicks, in our product catalogs, and in other consumer communications in the

coming months. This premium warranty, along with the commensurate lengthening

of Roadside Assistance and Courtesy Vehicle Transportation, gives you better

tools to merchandize our products. Historically, Buick has been known for

taking care of our customers and your CSI scores have reflected that fact.

Here is yet another premium way in which to express that customer care.

The J.D. Power awards for our vehicles and the plants that build them are

tangible proof of Buick’s quality. The new four-year/50,000-mile

Bumper-to-Bumper warranty takes another step toward a more premium Buick

experience.

AUTOCITY DE PINECREST---NEGOCIO SOBRE RUEDAS!

Lomberto Perez, Presidente de AUTOCITY BUICK-PONTIAC-GMC DE PINECREST.

AUTOCITY: UN NEGOCIO SOBRE RUEDAS!

ELENA KENNY--El Nuevo Herald

A Miami y a Detroit las separan muchas millas, pero la distancia pareció acortarse hace unas semanas por la rapidez con que Autocity de Pinecrest pudo dar auge a las ventas de automóviles, a raíz de la enérgica campaña de descuentos adoptada por el gigante automotriz General Motors Corp.

La decisión de GM, con sede en la anteriormente mencionada ciudad de Michigan, vino justo a complementar el plan de negocios de Lomberto Pérez, quien hace 18 meses, con el apoyo del fabricante de automóviles, se propuso revitalizar la antigua distribuidora Hallet Pontiac, la cual rebautizó con el nombre de AutoCity de Pinecrest.

''Logramos aumentar las ventas en un 65 por ciento entre mayo y junio'', afirmó Pérez, el presidente de la concesionaria. ``Y como General Motors decidió prolongar su campaña de descuentos hasta el 1ro de agosto, esperamos seguir aumentando las ventas en julio''.
Los resultados de Autocity superaron el aumento de un 41 por ciento en ventas reportado por GM en todo Estados Unidos, gracias a la promoción de precios de empleado para los consumidores en un buen número de modelos del 2005, que amplió la semana pasada hasta el 1ro de agosto. El ahorro, según Pérez, en modelos como GMC Yukon puede ser de $9,000 y en GMC Envoy de $7,000.

Esta no es la primera vez que Pérez trata de revivir con éxito una distribuidora de GM. En 1993, cuando él se unió al Programa de Desarrollo de Concesionarios Minoritarios de General Motors, su primera oportunidad fue asumir una agencia de vehículos con problemas en Pomona, California, la cual logró transformar en pocos años. Cuando la dejó en 1999 para volver a Miami, las ventas de Buicks, Pontiacs y GMCs marchaban sobre ruedas.

De regreso en esta ciudad, tomó las riendas de AutoCity Buick, Pontiac, GMC de Homestead, la cual fue adquirida por General Motors después que Pérez aceptó el reto de asumir la agencia de Pinecrest, ``de mayor tamaño y con un perfil de cliente de ingresos diferentes''.

Tras una inversión de $200,000 para mejorar las áreas de servicios y atención del público, así como para renovar equipo, Pérez afirma que han logrado ganar clientela desde Pinecrest hasta Coral Gables y Hialeah con sus 50 empleados.

Además de alcanzar grandes éxitos empresariales en Homestead, donde la agencia es hoy administrada por su hija Tammy y su esposo, Johnny Abreu, Pérez se convirtió en uno de los pioneros de ventas de automóviles por la internet a través del sitio www.Autocity4U.com. Hoy, también utiliza esta herramienta para que sus clientes sigan el pulso a cualquier reparación de sus vehículos en el taller, mediante un link denominado Service.

En el 2003, ganó reconocimiento por haber lanzado www.AutocityParaTi.com, el primer sitio de un distribuidor de vehículos 100 por ciento en español.

Su empeño por llegar a los mercados anglo e hispano de Estados Unidos lo motivó a sugerir, en el 2004, a la velocista venezolana Milka Duno como imagen para la publicidad de Pontiac dirigida sobre todo a los compradores jóvenes latinos.

Pérez dice que cuando conoció a Duno en una entrega de premios deportivos a fines del 2003, cayó en cuenta de que la ganadora del Rolex Grand American Series del Grand Prix de Homestead, precisamente con un prototipo Pontiac Crawford, era ''la imagen perfecta'' para promocionar esta marca. Y no se equivocó. GM contrató a Duno, y hoy es la vocero de GM en las campañas del fabricante de automóviles para el mercado hispano de EEUU, dirigida por Accent Marketing, en Miami.

''Ha sido una experiencia fantástica'', dijo Duno, poco antes de salir la semana pasada para Vancouver, Canadá, donde realizará un nuevo comercial del SUV Pontiac Torrent 2006, un modelo al que apuesta el presidente de AutoCity.

Pérez vino de Cuba en 1962, con 14 años, mediante el programa Pedro Pan. Le acompañaban su hermano menor y una hermana mayor, mientras sus padres permanecieron en la isla. Estuvieron en un campamento en Florida City administrado por la Iglesia Católica hasta que fueron trasladados al estado de Washington, donde asistieron a la Escuela Secundaria Católica Yakima Central, situada en un pueblo del mismo nombre y 40,000 habitantes dedicado al cultivo de manzanas. En 1966, ingresó al Miami Dade College y luego a la Universidad de Miami (UM), donde se graduó en periodismo y publicidad.

Pérez cuenta que en su último año en la UM, un profesor le recomendó contactar a Ron Miller, del Community Newspapers. El le dió su primer trabajo como editor de noticias latinas, que él hasta distribuyó en La Pequeña Habana. Luego, se unió a una agencia de publicidad especializada en el mercado hispano, y desde 1973 vendió por una década automóviles en Courtesy Ford, hoy World Ford de Kendall.

Luego que su hermano, Lombardo Pérez, abrió Metro Ford en 1983, fue su gerente general de ventas; diez años después se unió a GM.

Actualmente combina su temperamento y su talento para vender carros con sus herramientas periodísticas y publicitarias. Aparte del sitio en la internet, publica AutoCity News, un boletín que en la edición del verano 2005 no sólo resalta los modelos del 2005, como el Envoy Denali y el Buick Lacrosse, sino también otros del 2006, como el convertible Pontiac Solstice o el Buick Lucerne.

GM PLANS SMALL WAGONS FOR '08!

Automotive News--July 18th, 2005

DETROIT -- General Motors will beef up its lineup of small sport wagons with at least two unibody vehicles in 2008.

Company, industry and supplier sources say GM is developing vehicles for Chevrolet and Saturn. They would face established rivals such as the Toyota RAV4, Honda CR-V and Ford Escape. GM is considering a similar vehicle for Buick.

The small sport wagons will debut late in 2008 as 2009 models on an architecture referred to internally as "sub-Theta." They are under development in the United States, with help from GM Daewoo Auto & Technology.

Theta is the architecture for GM's current front-wheel-drive sport wagons, such as the Chevrolet Equinox and Saturn Vue. GM's newest offerings would be smaller than current Thetas, which are larger than the RAV4 and CR-V.

GM's decision likely is a response to the growing number of small sport wagons offered by Asian automakers.

The Asians have had a strong presence in the segment since the 1996 U.S. debut of the RAV4. The Honda CR-V hit the market a year later.

Since then, the market for RAV4-sized sport wagons has become more competitive. Hyundai introduced the Tucson last year. The Chrysler group is developing a car-based Jeep that will debut next year. Volkswagen is expected to introduce a sport wagon based on the Golf in the 2008 model year.

Ford sold 183,430 units of the Escape last year, an increase from the 167,678 units sold in 2003. Honda sold 149,281 units of the CR-V last year. Saturn sold 86,957 Vues in 2004.

GM uses the term "architecture" to signify a set of common components, performance characteristics, a common manufacturing process and a range of dimensions and connecting points for key component systems.

MILKA MAKES A MOVE!

Milka's CITGO ad campaign has her appearing in hundreds of billboards in over 10 cities including Miami, Orlando, Atlanta and Chicago.

Milka ready to go racing in her new Pontiac G6 ad campaign.

MILKA DUNO CONQUERS THE ADVERTISING AND RACING WORLDS!

Milka Duno, the Venezuelan racecar driver who has been making history on the racetrack, is now the subject of two major national advertising campaigns. She is featured in over one hundred billboards in 10 cities accross the nation including Miami, Houston, Chicago, Orlando and Atlanta. She is also the spokesperson for Pontiac's advertising campaing in the Hispanic market. She will be appearing dressed in black in magazine ads in publications such as Cosmopolitan, Latina, People en Español, Hispanic Business and Hispanic, among others.

Milka is the centerpiece in Pontiac's largest-ever Hispanic marketing campaign and is the first Latina to be featured in the advertising launch of the new Pontiac G6. Since September, Milka has been appearing in a four-page print ad and two new Spanish language television ads as part of the launch of Pontiac's all-new entry. The in-language, culturally relevant ads are part of Pontiac's largest Hispanic marketing campaign ever. As Pontiac's spokesperson for the Hispanic market, Milka has appeared in the Pontiac exhibit at various auto shows around the country to meet fans during public autograph sessions.

Here are a some interesting facts about Milka:

In the current 2005 season Milka has already scored her third Rolex Series overall win at the 6 Heures du Circuit Mont-Tremblant in Canada and is currently seventh in the Driver's Point Standings - out of a total of 129 male drivers.

Milka won both Rolex Series races in 2004 at the Homestead-Miami Speedway.

When Milka won the first race last year at Homestead-Miami Speedway she became the first woman in history to win a major sports car race in North America.

Milka is the first woman to race in the fastest class of the Rolex Series - the Daytona Prototype.

Milka finished the 2004 Rolex Series with 2 wins, one 2nd place finish, one 3rd place finish and she finished 5th in the Driver Point Standings - out of a total of 80 male drivers - and in her very first year racing in the top class Daytona Prototypes.

AUTOCITY CUSTOMER GALLERY

Oscar Lopez---'05 GMC Yukon

Promociones Disemar---'05 GMC Denali

John Williams---'02 GMC Yukon XL

Luis Castellanos---'05 GMC Yukon

Even higher fuel costs can't slow down GM truck sales!

JOHN K. TEAHEN JR. Automotive News --Posted Date: 7/13/05

Need further proof that America is becoming a nation of truck drivers?
General Motors' sales bonanza last month consisted of 69.1 percent trucks and only 30.9 percent cars. Truck sales were up a rousing 75.7 percent over last year; car sales rose a measly 7.3 percent. Those sales figures don't include Saab.

Looking at individual brands, Chevrolet truck sales jumped 72.7 percent, but its cars barely kept pace with last year, up only 2.0 percent. GMC truck sales zoomed 93.2 percent. GMC doesn't mess with cars.

Did desire trump gasoline price?
Sales of GM's large SUVs were mighty strong last month, raising two questions that we'll get to in a moment.

First of all, look at these year-to-year sales gains: GMC Envoy, 99.3 percent; GMC Yukon, 104.2 percent; Chevrolet Tahoe, 81.5 percent; Chevrolet TrailBlazer, 57.9 percent; Chevrolet Suburban, 48.3 percent; and Cadillac Escalade, 35.0 percent. Some of those vehicles are nearing the end of their life spans and will be replaced early next year.

Now for the questions, which may give marketing people a few sleepless nights: Did buyers say, "To heck with gasoline prices. I want one, and I'm going to buy one"?

Or was their rationale, "At prices like these, I can buy a lot of high-priced gasoline"?

Then and now
It's interesting to compare the first-month sales of GM's GM Employee Discount for Everyone with the first full month sales in the Keep America Rolling campaign that followed the 9/11 terrorist attack and featured 0 percent loans.

Keep America Rolling began in mid-September 2001, shortly after the attack, so October was the first full sales month. By then, Ford and Chrysler and several major imports had adopted the program.

Sales totals for the months are amazingly similar. GM dealerships delivered 544,215 North American cars and light trucks last month, just 1,878 more than in October 2001. June's total was 46.7 percent higher than a year earlier. In October 2001, the increase was 36.0 percent.
Last month, GM's market share rocketed to 32.4 percent, up an astonishing 6.8 percentage points from GM's subdued share last year. In October 2001, GM's North American makes had 31.6 percent share, up 1.6 points from the year before.

BOB LUTZ TALKS ABOUT THE FUTURE OF PONTIAC!

July 06, 2005

The following is an interview with Bob Lutz that appears in the latest issue of Pontiac Performance magazine. (Visit www.myGMmagazine.com to sign up for a free one-year subscription.)

Q: You've often said that Pontiac is near to your heart. What is it about this brand and its image that draws you to it?
A: Its glorious history and its legitimate place in the GM brand lineup as an aggressive, performance-oriented brand, appealing to younger people who want a car or truck to be more than just transportation.

Q: Talk to us about Solstice and the impact you expect it to have on Pontiac's image. Will you buy one?
A: Let's start with the second question: Clearly, I've already placed an order for one, and very definitely intend to own a Solstice. I see Solstice as playing an image revitalization role for Pontiac, in that it's very hard to improve brand perceptions through advertising. The best way to change perceptions of a brand is through an iconic, breakthrough product like Solstice that captures everyone's attention. And I enjoy getting e-mails that say, "I never thought I would set foot in a Pontiac dealership but the Solstice is going to make me do it." That benefits the whole brand. In fact, Pontiac dealers are saying they're selling other cars because of people coming in for the Solstice, so it's already generating traffic.

Q: You were the catalyst that brought the GTO back, which was an exciting event for enthusiasts. But the reaction to the car has been mixed. How do you answer the critics?
A: Well, it was a fast program, and the only way we could get it was to adopt an existing Australian car. We never intended it to be a "retro" car; we intended it to be a modern interpretation of the GTO. It was intended to get some performance credibility back for Pontiac and get the brand back in the market with a rear-wheel-drive, great-handling, V8-powered car. It's done that. And I might add the '05 GTO is not disappointing at all. We're selling every one we can get, and we're selling many in markets where we have to break through again with Pontiac, like on the West Coast.

Q: What are your goals for GTO in the future?
A: The future is ill-defined at this point. But it is definitely safe to say Pontiac will not give up on rear-drive V8 performance.

GM WILL INCREASE WARRANTY ON 2006 BUICKS!

By Jason Stein--Automotive News / July 05, 2005

DETROIT -- As part of its move to value pricing, General Motors will increase bumper-to-bumper warranty coverage on all 2006 Buick vehicles from three years or 36,000 miles to four years or 50,000 miles. Buick Marketing General Manager Steve Shannon said GM wants to add value without increasing prices. “These are steps to improve the perception of the brand and increase customer value,” Shannon said in an interview Tuesday. GM will inform dealers of the decision on Tuesday. Shannon said GM will make OnStar standard on all models beginning in 2006. And it will offer roadside assistance and courtesy transportation when vehicles remain in the shop overnight, Shannon said.

FORD AND CHRYSLER MATCH GM'S EMPLOYEE PRICING PROGRAM!

DETROIT (Reuters) -- Ford Motor Co., bowing to pressure from General Motors, said on Tuesday that it was matching its larger, crosstown rival's employee discount program. Under the program, which takes effect on Wednesday and will be called the "Ford Family Plan," Ford will shave thousands of dollars off the sticker prices of most 2005 model vehicles, company spokesman David Reuter said. The program will run through Aug. 1, he said.

Like the GM plan, Ford will sell its vehicles to anybody at the same prices Ford employees pay. "It's a great deal that we're going to deliver in a simple, consistent way to customers," Reuter said. "We're going to advertise this widely, in a huge significant way throughout the month."

The Chrysler unit of DaimlerChrysler has said it will respond to GM's program by rolling out its own employee pricing program on Wednesday. GM's "Employee Discount for Everyone" program was launched last month and the company extended it through Aug. 1 earlier on Tuesday. It drove GM's sales up 46.9 percent last month, which was the company's best sales month in 19 years.

Ford, which has seen its U.S. sales fall for 13 consecutive months, can ill afford not to remain competitive with GM. It has already warned that its core automotive operations may not be profitable this year.

GM EXTENDS GM EMPLOYEE PRICING UNTIL AUG. 1ST!

General Motors is spreading the word among its dealers that the firm will extend its successful Employee Price promotion to August 1. No wonder. The imaginative incentive program coupled with heavy advertising delivered remarkable results for General Motors in June, with its U.S. sales rising 41 percent over the same month last year, largely at the expense of Ford and Chrysler.

Ford lost the most market share, as it posted its 13th consecutive month of lower U.S. vehicle sales. Toyota and Nissan also posted double-digit gains, and Toyota said its first-half sales were the best-ever in 48 years of doing business in the United States.

The stronger-than-expected increase at GM was driven by steep discounts boosting GM's market. It was the company's strongest sales month since September 1986, and GM said it set an all-time industry record for light truck sales, which were up 68 percent. Chrysler, which said that it would launch a discount program similar to GM's next week, posted a thin 1 percent rise in June sales. And Ford's sales of new cars and trucks fell 2.5 percent.

The result was adjusted for one more selling day in June this year and excludes Ford's foreign brands. Vehicle sales across the industry strengthened 11 percent to a seasonally adjusted annual rate of 17.5 million in June. That was far above the 15.4 million rate in June last year and 16.6 million in May.

EXCITING DAY IN DAYTONA: PONTIAC DOMINATES RACES!

This past Thursday the Brumos Porsche 250 Sports Car Series race took place in Daytona. We were there with a contingent from GM and other dealerships. It was exciting to see Pontiac’s involvement in the race. In both the Daytona Prototype and the GT classes, Pontiac dominated the field. In the Daytona Protoype Class Pontiac took 4 of the top five positions, including 1st, 2nd and 3rd place. Milka Duno and Jan Lammers put in a tremendous effort, starting in the 20th position and finishing in 5th place. In the GT Class one of the two GTOs, that were entered for the first time, was running in 3rd place when it was hit by the 01 CompUSA car and was driven into the wall. He was out of commission and could not finish the race. Below you will find photos of the exciting action at Daytona.

The Hawaiian Tropic girls were all over their racing car and the men were all over the Hawaiian Tropic girls. The car finished 10th; the girls finished 1st!