General Motors Company (NYSE: GM) wants customers to “open the possibilities” their new credit card offers while flashing brand loyalty every time they use their plastic purchasing power. The card, advertised on their website, offers 5 percent earnings on the first $5,000 of purchases, and 2 percent thereafter.
There is no cap on earnings, and no limit on what portion of the earnings can be applied to a new GM vehicle, and they do no expire. No annual fee is associated with the card. GM is offering the card through Capital One Financial Corp. (NYSE: COF).
The previous Capital One card and points scheme was described by Automotive News. Four million people use the older card, their points expire, and earnings cannot surpass $500. That card is now closed, and only current customers can continue under its rewards program. Alternatively, they can apply for the new version.
In a press release by GM and Capital One, Bill Cilluffo, Executive Vice President, Card Partnerships at Capital One explained the impetus behind the new card. “Consumers told us they wanted a straightforward way to earn greater benefits than their current auto rewards card. Together, in partnership with General Motors, we have set a new standard in this category, and are providing a better solution for consumers to plan for and save toward their next new Chevrolet, Buick, GMC, or Cadillac vehicle.”
The card follows last week’s announcement by GM that the company had improved upon its Military Discount Program, by increasing price reductions available and adding incentives. Edmunds.com reports that the company also recently expanded its employee pricing program, which now includes extended family members.
What the card, and other incentives represent, is a push to move new GM models. Also in the press release was this statement by GM’s General Manager for Retail Sales and Marketing Support, Chuck Thompson: “We are introducing 27 new or refreshed cars, trucks and SUVs in 2013 and 2014 — an average of one per month – and the new GM Card is the key for customers to put one in their driveways.”