GM Customers Give Back

Their cars, that is. General Motors is updating the world on how many buyers have returned their vehicles under the company’s “May the Best Car Win” 60-day satisfaction guarantee. And the number is [drumroll]...193. Out of 220,000 cars sold so far, in the month since the program debuted. Doesn’t sound like a lot, does it? Autoblog’s Chris Shunk takes a closer look:

“[W]while 193 appears to be fairly insignificant when compared to overall sales, it also represents 30 percent of the 653 people who actually opted for the 60-day option in lieu of a $500 discount. While some would say that the 30% number is very bad for GM, we'd say that it isn't much of a surprise given the fact that those 653 customers obviously weren't very sure about their purchase decision to begin with.”

In other words, those customers wanted a safety net and used it, while the vast majority of other purchasers were confident enough going in to their deals to see that a $500 discount made more sense.

This is more good news for GM, on balance. The company’s confidence is growing, even as odd things are happening in its boardroom and executive offices. Its market share is expected to slightly increase this month, and it’s edging closer to making money in the U.S. On the downside, discounted inventory season is coming, so that dealer lots can be cleared for 2010 models. And an important number looms: the size of the North American market next year. Will it be 10.5 million new vehicles? 11.5 million? 12.5 million? GM is supposed to be able to make money in a 10-million market. That would be squeaky, however. 12 million or more could enable GM to get its market share above 20 percent and hold it there, making a good case for an IPO before next fall.