Another Spin Around the Auto Industry

Okay, I wasn't going to pick on automakers for the way they spin their news again so soon, but then I read about the Hyundai Assurance Gas Lock program and I couldn't resist.

Hyundai Assurance Gas Lock

Let's parse the details, shall we? The gist of the program is that when buyers purchase a new Hyundai, they're assured of paying no more than $1.49 per gallon for gas for a year. The press release tosses in some stuff about higher summer gas prices, Hyundai's "fuel-efficient" lineup and cash for clunkers, so the company really looks like it's taking fuel economy seriously.

But then you get to that line about "a maximum number of gallons equal to 12,000 miles divided by the EPA combined fuel economy rating for the qualifying model." And what does that mean?

Well, let's say you buy a Hyundai Veracruz, which chalks up a combined 18 mpg. And you drive it the 12,000 miles. And a variety of factors — including my limited math skills — have the price of gas go up an average of $3 per gallon for the year. (That is, you're paying $4.49 per gallon at the pump for the entire 12 months.)

With all that, Hyundai would be out about $2,000. Two grand is a decent chunk of change, but if Hyundai were offering that much in terms of "regular" incentives on the Entourage, no one would blink an eye.

Spread that money out across who knows how many fill-ups and you've got the groundbreaking Gas Lock guarantee, which sounds so much better!

And as an FYI, if someone goes to the other end of the spectrum and buys a Hyundai Accent, which notches a combined 29 mpg, we're talking an automaker payout of just $1,240.

Buy and Say Goodbye

Speaking of incentives, there's also the new "Buy and Say Goodbye" sale going on at General Motors. The purported deal here is that customers can come in and "Buy" certain GM products and "Say Goodbye" to their old clunkers.

Now, the press release on this program is a true masterpiece of subliminal messaging. When you read it, you discover the "Buy" part of the program refers to a 72-hour sale on two types of vehicles: big trucks and orphans. We're talking the Chevrolet Silverado / GMC Sierra and Chevrolet Suburban / GMC Yukon XL on the one hand and all Pontiac cars on the other. (Okay, the Chevrolet Impala is on the list, too.)

The "Say Goodbye" component is actually separate, and it's to promote that "GM will have twice as many qualifying vehicles under the Federal 'Cash for Clunkers' program, once it is finalized, than any other manufacturer."

And somewhere in the middle you've got the statement that "many other vehicles" will also be eligible for reduced financing rates even though they aren't part of the sale proper.

But really, when General Motors comes out with a sale that includes every Pontiac car — Vibe and all the G's: G3, G5, G6 and G8 — and pops "Say Goodbye" in the press release headline, well, who's fooling whom?

I can only guess that it's GM management trying to fool themselves. Memo to Fritz Henderson: Everyone already knows your eliminating Pontiac, why don't you just come out and admit it in your marketing?