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Dealers lament Big Three auto sales
Report: Little customer traffic since GM, Ford, Chrysler ended 'employee discount' programs.
October 11, 2005: 1:50 PM EDT

NEW YORK (CNN/Money) - Auto sales at Chrysler, Ford and General Motors dealerships around the country have slipped since the Big Three ended their respective "employee discount" programs at the end of September, according to a news report published Tuesday.

Speaking with dealers across the country, Automotive News reported that many showrooms are reporting slow or non-existent sales and customer traffic.

"My family has been in this business since 1974, and this is about as scared as I have been," Jim Satterthwaite, owner of Knopf Chrysler Jeep in Ambler, Pa., told the industry publication.

Ford (down $0.09 to $8.84, Research), General Motors (up $1.37 to $26.85, Research) and Chrysler (up $0.49 to $51.25, Research) rolled out versions of an employee discount incentive programs in recent months to boost flagging sales.

Dealers such as Richard Klaben, a principal in the Klaben Auto Stores of Kent, Ohio, told Automotive News that the slump is due to the automakers' decision to push the discount programs -- advertised as selling vehicles at the prices available to company employees -- instead of the quality of the automotive brands.

"Manufacturers put all their eggs and dollars on one message instead of spending money to sell the brand and increase consideration level for the brand," he told the publication. "Now we see what the payback is."

Besides the end of the discount programs, dealers quoted by the publication said high gasoline prices have also contributed to the downturn.  Top of page

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