GM to offer money-back guarantee on new vehicles

Looking to regain consumers' trust, General Motors Co. said yesterday that new-car buyers will be able to return their vehicles within two months of purchase for a full refund, part of a long-awaited new marketing campaign for the biggest American automaker.

The effort is part of a campaign that will start next week seeking to make connections again with American consumers who may be leery of the company since it filed for Chapter 11 bankruptcy protection earlier this year.

There is a "monumental chasm" between the public's perception of GM's vehicles and the autos in its current lineup, said GM Vice Chairman Bob Lutz, who delayed retirement to head GM's marketing efforts.

The company stands behind its cars and can offer full money-back guarantees, he said yesterday. As recently as three years ago, GM would have been faced with a huge risk if it made such an offer, but the company's current lineup is strong and can take on any competitors, especially foreign-made cars, he said.

"We really are in a position today where we can look anybody in the eye and say, 'We are as good as or better than everybody else,'" Lutz said.

The program is part of a sweeping new marketing campaign called "May the Best Car Win," which pits the company's four remaining brands -- Chevrolet, Buick, Cadillac and GMC -- directly against competitors.

The Detroit-based automaker said it will focus on quality, performance, fuel economy and design in comparing its cars against those of competitors. The Chevrolet Equinox will be featured in advertisements directly compared with the Honda CRV, and Cadillacs will target German luxury vehicles, Lutz said.

GM will allow customers who purchase a new vehicle starting next Monday through Nov. 30 to return it, no questions asked, for a full refund within 31 to 60 days from the date of purchase. The vehicles must not have more than 4,000 miles on them, and the drivers must be current on payments.

In another GM development, the automaker will sell its European unit Opel to Canadian auto-parts maker Magna International and Russia's Sberbank in a deal that preserves GM's ability to develop new cars with its longtime subsidiary.