Cars and Drivers
Costco Sold 58,000 GM Cars During Holiday Promotion
Published:
Last Updated:
Beginning October 2 and ending January 4, Costco Wholesale Corp. (NASDAQ: COST) and General Motors Co. (NYSE: GM) sponsored a promotion for Costco members who wanted to purchase a new GM car. Sales totaled approximately 58,000 GM vehicles for the three-month promotion, up 34% year over year and well above Costco’s estimated 20% increase.
The offer featured GM supplier pricing and included all qualifying manufacturer rebates and incentives on a selection of vehicles, including trucks, sport utility vehicles and luxury and fuel-efficient models. Buyers also received a $300 or $700 Costco cash card for completing a Costco member satisfaction survey.
Customers were also asked if the promotion was a “deciding factor” in their purchase of a GM car instead of another brand. More than half (53%) said it was, and GM took the most sales from Ford Motor Co. (NYSE: F). Some 32% of the GM buyers switched from Ford to GM cars. That’s about 18,650 fewer Ford cars sold in the three-month period. Toyota Motor Corp. (NYSE: TM) and Honda Motor Co. Ltd. (NYSE: HMC) lost 14% and 7% of sales, respectively.
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.