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GM Adds Rebates as High as $5,500 to Increase Sales
Dec. 8 (Bloomberg)

General Motors Corp., the biggest spender on incentives to sell vehicles, will offer rebates as high as $5,500 in some U.S. regions starting Dec. 10 after sales fell 16 percent in November, according to a Web site.

The rebates are only available to buyers using General Motors' finance unit for loans, according to Autodollars.com, a Web site that collects incentive information. The new incentives are part of a ``Red-tag'' sale on 2004 and 2005 models that continues until Jan. 3. General Motors' spokesman Deborah Silverman didn't return phone calls seeking comment.

General Motors has been using promotions such as 72-month loans and a guaranteed interest rates on future purchases to increase dealer visits in the past several months as competitors such as Toyota Motor Corp. lure more buyers. North American President Gary Cowger said Dec. 3 the Detroit-based automaker will remain ``aggressive'' with incentives.

The company's share of the U.S. market fell in November to a record monthly low of 24.8 percent from 28.2 percent a year earlier, according to Autodata Corp. The combined share for General Motors, Ford Motor Co. and DaimlerChrysler AG's Chrysler dropped to 56.6 percent in November from 59.5 percent in the year- earlier month while Toyota and other Asian carmakers' rose to a record 35.9 percent, according to Autodata of Woodcliff Lake, New Jersey.

Production, Inventories

General Motors and Ford, the largest U.S. automakers, said Dec. 1 they plan to cut first quarter North American auto production by more than 7 percent to help reduce inventories of unsold cars and trucks at dealerships. General Motors will cut production 7.1 percent to 1.25 million models and Dearborn, Michigan-based Ford will cut production 7.7 percent.

Unsold inventories at General Motors, Ford and Chrysler are expected to end the year 335,000 units higher than average, or about 2.63 million cars and trucks, New York-based Credit Suisse First Boston analyst Chris Ceraso wrote in a report two days ago.

The new General Motors rebates are as high as $5,500 on 2004 models such as the Pontiac GTO sedan and $2,000 on 2005 models such as the Chevrolet Suburban sport-utility vehicle and Malibu sedan, according to Autodollars.com. The vehicles and amounts vary by five U.S. regions, according to the Web site.

Sales Slogan

The program will carry the slogan, ``See some red, save some green.'' Dealers in the top 75 sales markets will be encouraged to attract buyers by marking low prices on red tags on 2004 and 2005 models, General Motors' North American marketing chief Mark LaNeve said on a broadcast to dealers yesterday.

Ford spokesman David Reuter and Chrysler spokesman Kevin McCormick said yesterday their companies have no immediate plans to match the new General Motors rebates.

General Motors' incentives rose to an average $5,098 a vehicle in the first half of November from $4,803 in October, according to CNW Marketing Research of Bandon, Oregon. The automaker spent $2,533 a vehicle in August 2001 before starting no- interest loans to rebuild sales after the Sept. 11 terrorist attacks. Estimates for December incentives weren't available.

The automaker expects to gain sales and reduce the cost of incentives as new models such as the Chevrolet Cobalt and Pontiac G6 sedans and redesigned minivans begin to add volume, Cowger said Dec. 3. General Motors introduced 29 new and redesigned models this year and plans 24 next year, he said.

Incentive spending by all automakers in the U.S. is expected to rise 20 percent to a record $60 billion this year from $50 billion last year, according to CNW. The totals exclude money spent by dealers. Incentives were offered on 90 percent of all models sold this year, compared with 43 percent in August 2001, prior to terrorist attacks in the U.S.

General Motors' shares fell 7 cents to $38.18 yesterday in New York Stock Exchange composite trading. They have fallen 29 percent this year. In Frankfurt, the shares today rose 14 cents to 28.55 euros.

To contact the reporter on this story:
Jeff Green in Southfield, Michigan, at [email protected]

To contact the editor responsible for this story:
Steve Geimann at [email protected]
Last Updated: December 8, 2004 08:30 EST
 

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The western area still has the $3500 rebate listed until Jan 3rd 2005.

I was soooo looking forward to getting the extra rebate. I even e-mailed my dealer to tell him to start the car to warm it up so we could do the deal.
 

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The dealerships in Lansing, MI are offering up to $7500 cash back plus GMS discounts. The GTO is one of the cars they are offering $7500 back on. I'm glad I got my GTO in Sept. but kind of wish I would have waited it out. I could get into one now for under $22,000...... :eek: Oh well. :rolleyes:
 

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Good Bargain

I put a deposit down on 04 GTO for a quote of $24,600. Should be getting it next week. I got $1500 in a certificate, $5500 for financing through GMAC for 2.9%. I paid $21,500 for my Stratus R/T, GTO will make up for more than the $3,1000 price difference. Im excited to get this baby.

-Frank
<ps my first post>
 
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