GM has rolled out its latest incentive programme, “The Red Tag Sale,” in a private video telecast for dealers Tuesday afternoon.

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The move was widely expected following two months of poor sales for the company in the US.


The new programme involves the marking up of vehicles on the dealer lot with special red tags. The tags will show the MSRP as well as the bottom line price the dealer will accept for each vehicle, either on a purchase or a lease.


GM will support the incentive with regional GMAC bonus cash and $150 salesperson cash per unit for up to 10 percent of a dealer’s inventory.


Executives said heavy advertising would also support the programme.


The promotion begins December 10 and runs through January 3, 2005.

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