Aussie dollar dive fuels G8 cashback incentive?

All of GM's North American divisions are on their hands and knees begging the public to buy their wares. So are Ford and Chrysler, of course, but the General has a domestic connection with Australia through the Pontiac G8, Holden's Commodore with rhinoplasty.

GM's Red Tag sale pretty much aims to push cars out the door by means of combining dealer inducements with cashback rebates from the factory. Some 2008 model year vehicles are being offered with zero per cent financing through GMAC, now in a stronger position since qualifying for 'bank status' under the US government's TARP (Trouble Assets Relief Program).

The total discount on new car pricing depends on a number of factors, including the relative popularity of the model in question and how much margin there is in the car for the respective dealer and the car company.

The high-profit, low-volume, made-in-Kentucky Corvette Z06 is listed at $78,670 and Chevy is offering a $500 rebate for buyers who sign on the dotted line within the 27 hours that the sale remains in effect. That doesn't sound like much of a discount, but the 'Red Tag' price for this model is $70,937.13 -- nearly 10 per cent of the standard retail price. And the $500 rebate comes off that as well.

Pontiac is letting go of its turbocharged Solstice GXP sports car (the donor car for the engine of the Elfin Type 5 Clubman, more here), for $25,699.89 -- after a discount of over $1000 for the Red Tag price and $2000 factory rebate.

The Aussie-built G8 is not immune, with the V6 model -- normally retailing for $29,995 -- discounted $950 and offered with a substantial $4000 rebate. Interestingly, the V8-engined G8 GT is being advertised with a rebate of just $2500. Sales of the VE Commodore-based Pontiac have been disappointing, with some industry analysts suggesting that it's the right car at the wrong time. In spite of its added practicality, it is not selling in the same numbers as the Monaro-based GTO did in its first year on sale in the US, back in 2004. However, that's as much a reflection on the domestic situation in the US market and affects new-car sales generally, not just those of the G8.

Saab's 9-5 SportCombi has been discounted by over $1500 and is being sold with a $5750 rebate. The factory rebates on imported vehicles point to depressed currency exchange rates favouring heavier incentives on those vehicles -- even the sub-$19K Saturn-badged Astra three-door is being flogged with a $2000 rebate -- although the Hummer H3 is one exception to that rule.

The rebate for the American-manufactured H3 is $7000 and the Red Tag discount is nearly $1600. For a vehicle that retails at $34,620, that's virtually 25 per cent off. And what's the bet Hummer dealers will negotiate further to move metal? Who would be a Hummer dealer in the US right now?