Fewer Than 200 Have Returned GM's Guaranteed Cars

GM’s 60-Day Satisfaction Guarantee program has proven to be a confidence booster for the company. Today, GM announced that fewer than 200 buyers out of 222,000 who purchased a new GM car have returned them unsatisfied. However, that’s out of 658 who took the guarantee offer over $500 in cash back. That’s a 33% return rate.

These returns don’t cost the buyer the full price of the car, but they are out taxes, fees and two car payments. This means those who returned cars were very unsatisfied and skeptical to begin with. GM says it is being proactive about the returns; they're following up with each customer and conducting high-level interviews with engineering staff to find out what the customers didn’t like. A few of the purchasers returned the cars for other models or trim levels, but many just didn’t like the cars or trucks.

GM Extends 60-Day Guarantee

While it appears very few new GM buyers are opting for its new 60-Day Satisfaction Guarantee, GM is extending the program through the end of 2009 and slightly beyond, ending Jan. 4. Buyers can opt for the guarantee which allows them to return a new vehicle after 30 days but before 60 — with restrictions — if the buyer isn’t happy with it. Recent reports have the take rate of the program at 10% of new car sales; the other 90% are opting instead for a $500 cash back rebate. Only a handful of the 10% have actually returned a car.
 
We’ve already wondered if this counts as a “success” but since the program doesn’t seem to cost GM much, the publicity and marketing value is likely making up for any loss. That’s why GM will continue touting its “May the Best Car Win” slogan in print, online and TV advertising through December. 

Consumer Reports' Top 10 Automakers

Today, Consumer Reports released the results of its annual car reliability survey, which includes more than 1.4 million vehicles. This is one of the most important publications of the year for consumers interested in a car’s reliability. There were few surprises in terms of which makes are most and least reliable, with Scion maintaining the top spot. Porsche, Saab, Suzuki and Pontiac saw the biggest gains while Lincoln and Mini took the biggest hits. Check out Consumer Reports full report if you’re a subscriber. We list the top 10 most and least reliable automakers below.

Cars.com Reviews the 2010 GMC Terrain

The GMC Terrain shares its DNA with the Chevy Equinox, a vehicle our reviewers truly enjoyed. Can the Terrain improve on that formula? Cars.com reviewer Kelsey Mays compares the Terrain to its twin and explains how the Terrain might help GM make up some ground in the increasingly important crossover market. Also, if you’re in the market for a Terrain, you'll want to hear what Mays has to say about the four-cylinder engine versus the V-6.

2010 GMC Terrain Review

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2010 GMC Terrain Video

A lot of readers wonder if the GMC Terrain is any different than its corporate cousin, the Chevy Equinox. Cars.com’s Kelsey Mays tells it like it is — the GMC is different. Can’t you tell by its looks? Find out if their differences are more than skin deep in this video.

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Few Taking GM Up On Buyback Offer

GM’s latest marketing blitz has been centered around the improving quality of its new models. Its 60-Day Satisfaction Guarantee promotion allows buyers to return their cars within 60 days if they’re not happy with it; if they return their car, they’re only out for the two months of payments and all taxes and fees. No matter the brand, it’s easy to have regrets about a new purchase, so it seemed like a good idea to bring in buyers wary of the GM brand after its rocky few years.

GM is saying the program is a success. Launched on Sept. 13, we are just three or so days into the timeframe when buyers can return vehicles under the program; they must own it for at least a month.

GM says less than 10 buyers have returned cars under the program. According to vocal GM executive Bob Lutz, one of them decided on another GM car — swapping a manual Corvette for an automatic.

Most new GM buyers — 90% — are opting out of the return program entirely in lieu of $500 cash back. That leaves 10% of customers who are the intended target of the promotion. Is that a success? We don’t have concrete numbers on how many cars were sold under the program since it started mid-month, but in September GM sold 156,673 vehicles. That’s a good guideline to go with to reference the past 30 days; 10% of September’s sales is 15,667, and 10 people out of that number is 0.06%. Is that a good or bad number?

It’s hard to say. Many in the industry would consider 10% an impressive figure for new — or conquest — customers, especially for a company like GM and its baggage. Others may just call the whole thing an elaborate marketing and PR exercise. You can weigh in below. 

2010 GMC Terrain Pricing

Yesterday, we brought you the first drive of GMC’s new two-row crossover, the Terrain. It’s similar to the 2010 Chevrolet Equinox, but the Terrain’s pricing is slightly higher and it comes better equipped than its Chevy counterpart.

The base Terrain SLE1 model — starting at $24,250 — comes with a rearview camera, which is an option on most Equinox trim levels. The Terrain SLE1 model also comes with red ambient lighting, 17-inch aluminum wheels, fog lamps and a USB input.

The Terrain lineup’s pricing, equipment and options are listed below.

2010 GMC Terrain: First Drive

Yesterday, we took our first spin in a few versions of the 2010 GMC Terrain five-seat crossover, which goes on sale this week. The Terrain is GMC's version of the Chevrolet Equinox. General Motors gets a little twitchy if you point out that one model is a version of another. No one wants to pay a premium for a model "based on" one from a more modest brand, right? It's a reasonable argument, but the economic reality of auto manufacturing in 2009 requires all companies to do more platform- and parts-sharing than ever, and when it's done properly, there's really nothing wrong with it.

Two things should make GM and potential buyers more comfortable about the fact that this GMC is related to a Chevy: First, its sibling is the Equinox, which in its 2010 redesigned form is a strong contender in the world of compact SUVs. Second, there's a lot to distinguish the Terrain from its sibling where it counts most: on the outside, where only the windshield and the roof are shared.

2010 Chevy Equinox, Cadillac SRX, GMC Terrain Named Top Safety Picks

The redesigned 2010 Chevy Equinox is off to a fast start, selling more than 13,000 units last month. Good news for those new owners, the crossover earned the Insurance Institute for Highway Safety’s Top Safety Pick award. To receive the nod, a vehicle must earn a top score of Good in front, side and rear crash tests; it also must be equipped with stability control.

The 2010 Cadillac SRX and the new 2010 GMC Terrain crossovers also earned Top Safety Pick status.

In November, the IIHS will start including roof strength tests into their award program, which will make it much harder for vehicles to get a Top Safety Pick designation.

GM Offering 60-Day Money-Back Guarantee

We’ve seen a lot of bizarre sales tactics over the past few years, but the new GM is going somewhere none have tread before. Starting Sunday, the company will offer a 60-day, no-questions-asked, money-back guarantee on all new Buick, Cadillac, Chevy and GMC vehicles.

One television ad that will begin airing Sunday during NFL games will feature new GM Chairman Ed Whitacre, formerly AT&T CEO who was appointed to the GM post by the government. It seems he needed to be convinced about GM products, too, and thinks the offer will resonate with reluctant shoppers.

The program will run through November and does have a number of conditions, as you’d expect. We list a few of them below. More information will be posted on this GM site on Sunday.