GM's Discount Promotion Could Boost Satellite Radio Subscription Numbers

General Motors (GM) has announced that all 2008 and some 2009 vehicles will be available to everyday consumers for the employee discount. The Employee Discount promotion started in 2005 and boosted GM’s sales in a big way. Other auto makers have offered similar promotions as well from time to time. GM, who markets the promotion strongly with well pointed ads, has been busy with commercials during the Olympic Games on NBC.

Steep auto discounts was one of four factors that I felt would boost auto sales. While other turn-around factors have still not been met, the Employee Discount Program offered by GM may be enough to stabilize sales for the auto maker, which in turn will help satellite radio subscription numbers. For consumers, there is also additional cash incentives on top of the already discounted price.

General Motors has been the largest installer of satellite radio since the beginning. While the deal is expensive, it does help boost the subscriber numbers and could be a factor in getting Sirius XM (SIRI) to cross the 20,000,000 subscriber hurdle by the end of the year.

At this point it will be interesting to see what other auto makers do in response, and whether that will fuel stronger automobile sales in Q3.

Position - Long SIRI, No Position GM

Comments

[clu.invesment:]

Just spoke with my Broker at Smith Barney who suspects Jim Cramer is trying to help out a hedge fund holding a large short position in SIRI

2008 Aug 21 08:29 AM

[gsmw:]

IF THE BIG AUTO DEALERS WOULD CONTRACT TO BUY FOREVER BATTERIES THEN THERE PRODUCT WOULD LOOK AND SELL BETTER

2008 Aug 21 08:51 AM

[Double J:]

Can anyone explain to me why yahoo finance keeps posting this video of Cramer advising the the buy of Siri debt is a better bet than the buy of common stock? Its about a month old...
Am I the only one that feels like may be a conspiracy? I feel like it is Mel, SiriXm and the common stock holders versus the world. Not cool.

www.thestreet.com/_yah...

2008 Aug 21 09:09 AM

[Double J:]

excuse the terrible writing in my last comment - just frustrated.

2008 Aug 21 09:12 AM

[fly4u:]

Double J.... it's actually a new video, with the same old news. I'm totally done with Cramer and CNBC. He keeps beating up this stock and Goldman Sachs keeps adding to their shares. Can't get much more corrupt than that.... helping his friends at GS. Tyler, thanks again for another great article!

2008 Aug 21 09:29 AM

[ARI D K:]

Do not waste another second thinking that Cramer is out there to help investors, he is a Fund manager , he helps himself and his buddies at GS and other private Hedge funds.
He buys and sells for his fund well before his TV recommendations, and all the suckers follow him.

2008 Aug 21 10:29 AM

[mgn:]

Cramer Screens his calls before they come on the Air. He is a fraud. When he pushes a stock he allows about 20-30 calls on the stock for months. After his stock fails he doesn't allow any more calls. Example, SIRI, LVLT, RITE, Q, and many more.

2008 Aug 21 11:01 AM

[Mr. Stupid:]

yah, my broker said the same....Mr.Jim Flamer is working quietly for a hedge fund....

2008 Aug 21 12:07 PM

[valuestocks...:]

Cramer has also been pushing his website subscriptions by using news teasers on yahoo. He should be ashamed, doubt if he is. As he says he wants no friends and i am sure he does not have any.

2008 Aug 21 12:52 PM

[shure46:]

Jim Cramer is quickly losing credibility and he knows it ......Frankly he reminds me of one of those late night faith healers that have no substance so they resort to a myriad of theatrics , bells , and whistles .....and yes of course Cramer screens all of his callers , he knows the questions before they are asked , and he only takes calls designed to make him look like he is ultra knowledgeable on the fly ....it is just a means for him to make a buck and that is all he cares about .......if he truly received a random phone call about a random stock , he would just look stupid and scratch his head and say , " Uh , um , well , hmmmmmm , lemme check into that " .........there is no way in hell he has knowledge of every stock that a caller may ask about .....but that's the perception he likes to give with his rigged phone calls .......it's a circus , and he is a clown ......with A-D-D ........as a disclaimer I am sure he knows more than me ...but NO ONE can truly predict where a stock is going with great results ..... there are too many tangents and variables , and a hell of a lot of big banks manipulating things , and pouncing the price up or down before we even wake up in the morning ....just like the other day US Air dropped 30% in ten seconds because they diluted shares by a few more million ......like pulling the rug out from under you .......and trading was halted while the shares plummeted !!!!!!! Ain't that the shits !!!!!! I got lucky and sold my shares prior ....but a lot of people got screwed ........analysts schmanalysts

2008 Aug 21 03:42 PM

[AmIBankrupt:]

Jim Cramer is from New Jersey

Do you know how many mayors, city councilmen, officials in New Jersey are corupt and been in prison.

Jim Cramer would be next in a class action SEC case

2008 Aug 21 04:29 PM

[iPuck:]

20 Million subscribers @ $10 wow, what other company have that many susbcribers?

2008 Aug 22 06:15 PM

[sailboat:]

Come on guys.. Give the Cramer thing a break. He's a crook and everyone knows it.

I think more people are seeing tech as standard rather than a luxury option to vehicles and the number of cars getting Sirius radio and nav will increase. I consider myself very tech savvy buy wouldn't think of getting Sat radio or nav 2 years ago. Although I just purchased a car off the lot with standard FM/CD, I really want the factory installed option and so do most people I talk to.

2008 Aug 22 10:05 PM

[killerkaul:]

Hey guys..................... got back from the bike trip..............now it's time to go to work..................... Run Blue Dog Runnnnnnnnnnnnnnnn!!!!...

2008 Aug 24 10:19 PM