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GM MASTERCARD PROMISES TO TURN PLASTIC INTO STEEL

 GM MASTERCARD PROMISES TO TURN PLASTIC INTO STEEL
 NEW YORK, Sept. 9 /PRNewswire/ -- General Motors (NYSE: GM) unveiled


its newest vehicle today -- a no-fee, general purpose credit card with an unprecedented five percent rebate feature designed to save consumers hundreds, even thousands of dollars on the purchase of a new GM car or truck.
 The GM Card(sm), a MasterCard available to the general public, enables consumers to save up to $3,500 or more on the purchase or lease of a new vehicle from Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac or GMC Truck.
 Consumers can achieve these savings by earning a five percent rebate up to $500 per year, accruable for seven years, based on purchases made with the GM Card. Moreover, the rebate earned from using the GM Card is above and beyond any general public discounts available on GM vehicles at time of purchase.
 In addition, GM Cardholders can double their earnings and receive 10 percent in their GM Card rebate account when they use the card to purchase goods or services from a select group of GM Card Corporate Partners, the first of which are MCI, Avis and Marriott. Additional GM Card Corporate Partners will be named over the next several months.
 As an added bonus, there is no annual limit on the rebate dollars consumers can earn by using their card with the select Corporate Partners -- meaning GM Cardholders can actually exceed the $500-$3,500 rebate benchmarks of the core program.
 GM Cardholders can also earn five percent in their rebate account by transferring outstanding balances from other credit cards to their GM Card account. The GM Card's 16.4 percent adjustable finance rate (current prime plus 10.4 percent) is lower than the industry average of approximately 18 percent.
 The GM Card's kick-off announcement was made here today at the GM Building by J. Michael Losh, GM vice president and group executive in charge of North American Vehicle Sales and Marketing.
 "The GM Card harnesses the power of two leaders in their categories -- General Motors and MasterCard -- and bonds them together in a product that gives consumers an unprecedented way to leverage their credit card purchases into savings on their next new GM car or truck," Mr. Losh said.
 "The GM Card represents a powerful and innovative marketing tool that can help GM and its products stand above the competition," he added. "With its outstanding features and long-term benefits, the GM Card is a prime example of our ongoing commitment and belief in the superior quality and value of GM products -- now and in the future."
 Mr. Losh noted that one of the biggest direct mail and advertising campaigns in GM history would help spread the word about GM's newest product.
 "Over the next three weeks, more than 30 million Americans will receive preapproved GM Card applications by mail," he explained. "This unprecedented direct mail campaign will be supported by new national print, television and radio advertising campaigns beginning tonight and tomorrow.
 "No matter how consumers learn about it," he said, "we're convinced they'll decide the GM Card is a great way to turn buying power into horsepower."
 HOW IT WORKS
 Every time the GM Card is used to make a purchase, five percent of the total amount is credited to the GM cardholder's rebate account, explained Ronald N. Zebeck, managing director of the GM Credit Card Operations. For eadds another $25 to the rebate account; a $2,000 balance transfer from another credit card to the GM Card adds $100. Taken together, these three transactions would accrue $175 into the GM Card rebate account.
 The GM cardholder's monthly statement will reflect the current value of the rebate account, which can be redeemed toward the purchase or lease of a new GM vehicle at any time during the rolling, seven-year accruable period, Mr. Zebeck noted.
 "The GM Card is designed to help GM sell more cars and trucks, improve owner loyalty, differentiate GM from its competition and improve our knowledge of our customer base," he said. "With its compelling and exclusive five percent rebate feature, no annual fee and other important advantages, we're confident the GM Card will achieve these objectives.
 "The average consumer buys a new vehicle every four years," Mr. Zebeck continued. "If a consumer is going to use a credit card, he or she may as well use the one that has the best value. And the GM Card is the first card designed to put a consumer behind the wheel of a new car or truck."
 HOUSEHOLD, MASTERCARD TEAM WITH GM
 The GM Card will be issued by Household Credit Services, a unit of Household International and one of the nation's largest credit card issuers. Household Credit Services anticipates adding 1,400 jobs over the next three years to its credit card processing facilities in Virginia and California to accommodate GM Card growth.
 "Our expansion is just one indication of our confidence in the GM Card concept, and we're committed to making it a credit card industry leader," said Joseph W. Saunders, group executive of Household International.
 According to Alex W. "Pete" Hart, president and CEO of MasterCard International, his association "believes joint marketing programs, such as this one with General Motors, provide a major growth opportunity because of the potential gains in cardholders and cardholder usage. In addition, it enhances the value of bankcards versus the competition."
 "The GM MasterCard will deliver a new dimension of value to consumers, much like the airline affinity cards and other co-branded MasterCard programs have done," Mr. Hart added. "We always welcome programs offered by long-standing MasterCard issuers which offer unique, competitive challenges to other credit cards -- and the GM MasterCard is one of them."
 Information on obtaining a GM Card application and other details of the program are available to consumers by calling 1-800-8GM-CARD.
 -0- 9/9/92
 /CONTACT: Thomas J. Pyden of General Motors, 212-418-6380/
 (GM) CO: General Motors Corporation ST: Michigan, New York IN: AUT FIN SU: PDT


ML -- DE008 -- 7533 09/09/92 13:02 EDT
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Date:Sep 9, 1992
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