Printer Friendly

GM CARD STRIKES GOLD WITH LUXURY MODEL; OFFERS $7,000 SAVINGS ON NEW GM VEHICLE, 13.4 PERCENT FINANCE RATE

 CHICAGO, Feb. 4 /PRNewswire/ -- General Motors revealed its newest luxury product today -- a GM Gold MasterCard program, with a five percent equity feature whereby cardholders can earn up to $7,000 off a new GM car or truck, and interest rates as low as 13.4 percent. The GM Gold Card is the companion to the record-setting GM Card launched last fall, which also enables cardholders to accrue five percent earnings from each transaction.
 GM Gold Card holders can accrue up to $1,000 per year/$7,000 over seven years, double GM Card earnings that have a cap of $500 per year/$3,500 over seven years. Earnings from both cards can be used toward the purchase of lease of a new vehicle from Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac or GMC Truck, above and beyond any discounts or rebates available on GM vehicles at the time of purchase.
 The GM Gold Card carries a $39 annual fee, which is applied directly to the cardholder's equity account. It has a variable interest rate, 13.4 percent for balances in excess of $2,500 and 16.4 percent for balances less than $2,500, and credit lines up to $25,000.
 With either card, consumers can earn 10 percent into their earnings account above and beyond the $500/$1,000 annual savings by using the GM Card or GM Gold Card to purchase goods or services from partners that include Avis, Marriott and MCI. Today, that partner list was significantly expanded with the announcement that Mobil Oil Corp., Time Warner Select, Marriott's Fairfield Inn, Courtyard by Marriott and Marriott Ownership Resort properties have joined marketing forces with the GM Card and GM Gold Card.
 In addition, GM Travel Services -- a new feature of both the GM Card and GM Gold Card -- has been established to further strengthen the GM Card's position as the leading value-oriented credit card available today.
 -- More than three million GM Card accounts have been opened and 4.5 million cards have been issued since the launch.
 -- More than 5,000 new GM cars or trucks have been purchased or leased since that time by GM Card holders who redeemed funds from their earnings account.
 -- A significant portion of Household Bank credit card customers will be offered the opportunity to convert to the GM Card.
 -- The balance consolidation option becomes permanent feature, meaning GM Card or GM Gold Card holders can automatically get balance transfer checks at any time.
 -- Two-cycle billing, a complicated formula that affects less than two percent of all GM Card holders, has been eliminated.
 The announcements were made by Ronald N. Zebeck, managing director of GM Card Operations, at Chicago's Drake Hotel, just prior to the opening of the Chicago Auto Show.
 The GM Gold Card, as with the GM Card, has a permanent balance transfer option. This feature enables a consumer to convert existing balances to a GM credit card and earn instant equity in their earnings account, while potentially saving on finance charges due to the low 13.4 percent interest rate.
 The GM Gold Card also includes enhancements such as MasterAssist travel assistance services, MasterPurchase retail protection services, 24-hour customer service, and like the GM Card, is welcome at more than 10 million merchants worldwide.
 "The GM Gold Card prospects and upscale car buyers are an obvious match," Zebeck said. "The earning potential, utility and prestige of the GM Gold Card make this a very attractive, value-loaded credit card product for a large number of people who drive premium automobiles. GM Gold Card applications are available today. All of those cardholders will look very seriously at GM products when they purchase their next vehicle."
 According to Joseph Saunders, president/CEO of the GM Card's issuing bank, Household Credit Services, who also was in attendance at the news conference:
 "All of us at Household are extremely pleased with our alliance with General Motors," Saunders said. "Based on our program to date, the GM Card is proving to be a real win-win situation for its business partners and the consumer.
 "We will also aggressively continue to promote strategic alliances in other product categories which create value."
 The announcement of new partners is good news for GM Card holders and GM Gold Card prospects. The agreement with Mobil, which has more than 9,000 service stations in 75 percent of major metropolitan areas, means a 10 percent earnings on all gasoline purchases, with no limit, beginning March 1. The typical consumer buys an average of $1,200 of gas per year, which converts into $120 into their GM earnings account if they purchase Mobil gasoline.
 Time Warner Select is a special program for GM Card holders. When using the GM Card or the GM Gold Card to purchase specially chosen merchandise from the Time Warner family of products -- such as magazines, books, videos and other fine entertainment products -- cardholders earn a five percent Time Warner Select partner bonus. By purchasing Time Warner Select merchandise through GM Card mailings, cardholders will therefore receive a 10 percent GM Card rebate.
 New partners Fairfield Inn, Courtyard by Marriott and Marriott Ownership Resorts mean that a cardholder can earn 10 percent earnings when using their GM Card or GM Gold Card at these Marriott properties. Fairfield has 110 inns nationwide, and there are 207 Courtyards. Marriott Ownership Resorts encompass 18 resorts in seven destinations.
 Any travel bookings through GM Travel Services, provided by Carlson Travel Network, means five percent toward the purchase of a new GM car or truck when using a GM credit card, but 10 percent when a preferred supplier is used. Preferred suppliers include major airlines to be announced soon, as well as Club Med; Pleasant Hawaiian Holidays; MLT Vacations; Trafalgar Tours; Princess, Carnival, Royal Caribbean and American Hawaii cruise lines; and up to 40 other hospitality-related suppliers to be announced in the near future. Cardholders may call 1-800-685-7815 to obtain additional information.
 "The success of the GM Card is extremely gratifying; its already selling cars and trucks," Zebeck said. "But more importantly, we learned a lot about our current customers and prospective customers. The announcements today provide consumers with more reasons than ever to consider the GM Card or GM Gold Card, and consider GM products next time they purchase a vehicle."
 "Our objective all along has been to establish the GM Card as the automotive credit card in order to sell more cars and trucks, and we plan to continue our leadership in this area."
 -0- 2/4/93
 /CONTACT: Stan Stein, 313-258-8600, or John Maciars, 313-556-2034, both for General Motors Corp./
 (GM)


CO: General Motors Corp. ST: Michigan, Illinois IN: AUT SU: PDT

SM-AH -- NY004 -- 3203 02/04/93 17:01 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 4, 1993
Words:1120
Previous Article:INNOVEX DECLARES QUARTERLY DIVIDEND
Next Article:MERRILL LYNCH TO EXPAND PRESENCE IN BOSTON AREA
Topics:


Related Articles
MCI PUTS CONSUMERS ON THE ROAD TO SAVINGS; MCI ANNOUNCES PARTICIPATION IN NEW GM MASTERCARD
GM MASTERCARD PROMISES TO TURN PLASTIC INTO STEEL
GM FLEXES MARKETING MUSCLE WITH LAUNCH OF GM MASTERCARD
CARS NOT THE ONLY STARS AT '93 NORTH AMERICAN INTERNATIONAL AUTO SHOW
GM VISA PROMISES TO TURN PLASTIC INTO STEEL IN CANADA
GM ANNOUNCES 1994 PRICES
GM MASTERCARD REACHES REDEMPTION MILESTONE; 100,000 CARDHOLDERS HAVE REDEEMED GM EARNINGS TOWARD NEW GM VEHICLES
MORE THAN 235,000 CHICAGO-AREA CONSUMERS ALREADY CARRYING THE GM MASTERCARD AND EARNING REBATES TOWARD GM CARS AND TRUCKS
GM DEALERSHIPS JOIN GM MASTERCARD PROGRAM
GM MASTERCARD REACHES 200,000 REDEMPTION MILESTONE

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters