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Sep 10, 3:47 PM EDT

GM offers refund to car buyers to win them back


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MILWAUKEE (AP) -- Looking to regain consumers' trust, General Motors Co. said Thursday 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 major marketing campaign that will break 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 line-up, said GM Vice Chairman Bob Lutz, who delayed retirement to head GM's marketing efforts.

The company stands behind its cars now and can offer full money-back guarantees, he told reporters on a conference call Thursday. 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," that 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 to the Honda CRV, and Cadillacs will target German luxury vehicles, Lutz said.

Although a new GM advertising campaign will feature Chairman Edward Whitacre Jr. telling consumers about the new GM, Lutz said that will be short-lived as GM shifts focus to its brands, rather than the corporation. Individual campaigns for the brands will share common elements but the GM logo and the words GM will not appear, he said. Instead, the brands will be the true focus, since consumers' perception of GM is affected by the company's bankruptcy filing this year.

"We are emancipating the brands and trotting them out in the open," 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 their payments.

The offer applies to brands such as Chevrolet, GMAC, Buick and Cadillac. The Pontiac brand, which GM is phasing out, is not eligible. Leased vehicles are also ineligible.

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AP Auto Writer Kimberly S. Johnson contributed to this report from Detroit.

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