In a last-ditch attempt to move inventory from dealers’ lots, GM is launching the 100th Anniversary Sales Event, a promotion offering employee pricing on all remaining 2008 models.

The program, which begins tomorrow and runs through September 2, offers pricing normally reserved for GM employees.  All 2008 Chevrolet, Pontiac, Buick, GMC, Saturn, Cadillac, Saab, and Hummer models are applicable (excluding medium duty trucks), as are the 2009 Chevrolet Cobalt and HHR, Pontiac Vibe and G5, and Cadillac CTS.

The employee pricing, offered on top of GM’s current incentives, is expected to cut vehicle MSRPs by approximately ten percent.  Automotive News reports a 2008 Buick Enclave, which normally retails for $44,010, carries an employee price of $39,561.  Beginning tomorrow, dealers will affix a secondary window sticker with the revised pricing to all applicable vehicles in stock.

By Sharon Terlep

Of DOW JONES NEWSWIRES

DETROIT -(Dow Jones)- General Motors Corp. (GM), looking to win over customers wary of poor-quality, Detroit-built cars and trucks, said Tuesday it will offer a one-year/12,000-mile bumper-to-bumper warranty on used vehicles.

The guarantee applies to all GM Certified Used Vehicles from Buick, Chevrolet, GMC and Pontiac sold in the U.S. going back to the 2003 model year. Saturn Certified Pre-Owned Vehicles will get the same warranty.

GM said the program, which begins Sept. 13, will help bolster sales and residual values of its cars and trucks. Vehicles made by Japanese-based auto makers tend to boast better resale values than those sold by Detroit companies, a significant competitive disadvantage for domestic brands.

“We’ve upped our game and made significant strides in quality,” said Jamie Hresko, GM North America vice president of quality. “This shows GM’s confidence.”

The warranty will cover any vehicle defect outside of normal wear and tear.

GM’s certified-used vehicle sales are down this year from 2007, when the auto maker sold a record 451,000 used cars and trucks, the company said Tuesday.

Used vehicles are falling victim to the same sales slump driving down sales of new vehicles to their lowest levels in more than 15 years. Many consumers, hit by the weak economy and record gas prices, are holding off making big-ticket purchases such as new vehicles.

In 2007, GM rolled out a five-year, 100,000-mile limited powertrain warranty for its used vehicles. The current bumper-to-bumper warranty lasts three months or 3,000 miles.

“Anything you can do to draw consumers into a brand and give them piece of mind helps,” said Jack Nerad, executive market analyst for Kelley Blue Book.

He said extending the warranties may help sell more used vehicles, but won’t likely improve residual values significantly.

“Residual values are largely based on reputation,” he said. “And those reputations have very lengthy lives.”

GM shares closed Tuesday down 41 cents, or 4%, to $9.95 and are unchanged in recent after-hours trading.