General Motors is no stranger to financial troubles. The 2008 recession, whose effects still linger to this day, took a heavy toll on the auto maker. The company was forced to shut down several factories, lay off thousands of workers and discontinue some of their models. Recovering from the recession has been no small feat for the world’s businesses, but the auto industry has had a particularly rough time of it, due mainly to the additional expenses that come with purchasing a vehicle.
In an effort to boost sales, GM is now offering a year’s worth of auto insurance for every new car. The initiative is only in effect in Washington and Oregon, but the company may choose to expand their offer if it proves successful. The coverage will be provided by MetLife, one of the largest insurers in the U.S. and will be offered at no additional cost to the vehicle itself. The insurance will provide liability and physical damage protections and GM claims that the policies far exceed the minimum insurance requirements of both states.
One of the features of the insurance policies is that if the vehicle is irreparably destroyed within its first 15,000 miles, it will either be replaced or the owner will be repaid the full amount of the car. Chris Perry, vice president of GM Marketing, and Joel Ewanick both had worked for Hyundai in the past. They are responsible for the “Hyundai Assurance” program, through which drivers could return their vehicles for a full refund if they had lost their job within the year of purchase.
GM will continue offering this deal through September 6th, at which point they will determine whether or not it is suitable for other states.