A two-month-old campaign to clear out bloated inventories reportedly will end at
with the canceling of a discount program that offered buyers the same prices paid by the automaker's employees.
A GM spokesman said the "employee-discount" program will end Monday, according to
The Wall Street Journal.
The discounts, which led to a big volume improvement in June, were matched by
earlier this month.
Last week, GM reported a second-quarter loss of $286 million, or 51 cents a share, on a 1.6% sales decrease to $48.5 million. The results reflected a $1.2 billion loss in the company's North American automotive operations. The red ink came despite a 44% improvement in June vehicle sales.
In a postearnings conference call, CFO John Devine said GM's inventory overhang was a key contributor to the loss and that its eradication should set the company up for earnings improvement. GM remains hamstrung on several fronts, however, as market share declines and the company contends with stubbornly high labor and health care costs.
According to the
, the discount program is being canceled because inventory levels are no longer sufficient to meet customer demand.