Free GM Stock with purchase of vehicle!

[Steve]

It's all about marketing I guess, because they can give cash back, a free toaster, a gas card ... or GM stock when you buy. How about a lower price?


http://blog.mlive.com/autoblog/2008/...e_company.html

Analysts say General Motors Corp. needs to raise billions of dollars in cash to make it through what is likely to be the most severe economic downturn since at least the early 1980s recession. A Fort Worth, Texas GM dealer is doing its small part to help out.

Frank Kent Motor Co. will give 50 shares of GM stock to every customer who buys a GM vehicle from the dealership. At this morning's price of about $6 a share, the promotion is worth $300.

This could raise a lot of money for GM if it were carried out on a national basis. Last year, GM sold 3.87 million vehicles in the United States. If GM floated a stock offering and a similar number of GM vehicle buyers were to each buy 50 shares, that would raise about $1.2 billion for the automaker. There might be dilution problems involved in a new stock offering, but how much more diluted can a stock selling for $6 a share and not paying a dividend get? Here's Frank Kent's release:

[Steve]

Wonder how this turned out for folks. GM Stock is up and down a lot.