Paper Reports GM To Increase Pick-up, SUV and Van Incentives

DETROIT January 30, 2003; Ed Garsten wrting for the Detroit News reported that General Motors raised cash incentives Wednesday $500 to $2,500 on the Chevrolet Tahoe, TrailBlazer, Suburban, Express van, and the GMC Yukon, Yukon XL, Envoy and Savana van. Zero percent interest is also available on 36-month financing for those vehicles. The offer runs through Feb. 28.

GM also extended until Feb. 28 the $2,500 rebates on the Chevrolet Avalanche, Silverado and GMC Sierra. The company raised the cash-back offer on those pickups $500 last week and had planned to end the program on Friday.

He quoted GM spokesman Jeffrey Roegner who said "We will continue to show leadership in a highly competitive marketplace by presenting consumers compelling offers to buy new GM products".

The move comes as industry analysts predict an overall slowing of vehicle sales partly because of consumer uncertainty regarding a possible armed conflict in Iraq.

"I'm sure people are apprehensive about the war and are getting more hesitant about spending," said Robert Schnorbus, chief economist at J.D. Power and Associates.

Major automakers attempted to scale back incentives at the start of the year but sales quickly slackened. Major automakers report January sales on Monday.

Ford Motor Co. is "studying" GM's latest incentive move but is skeptical of its effectiveness, said spokesman Jim Cain.

"We knew it was only a matter of time before GM once again increased its incentives. Every time they've tried to pull back over the last year, they've reverted back to their same old bad habits," Cain said.

A spokesman for DaimlerChrysler AG did not return a telephone call.