GM, Ford Extend Summer Incentives

GM Extends Summer Incentives Blitz, Offering Interest-Free Financing and Cash Rebates

DETROIT July 8, 2003; John Porretto writing for the AP reported that General Motors Corp. and Ford Motor Co. extended most of their rebate and financing deals Tuesday as the world's two largest automakers try to spur what has been a lukewarm automotive market.

As it has for much of the summer, No. 1 GM will continue to offer interest-free financing for five years and cash rebates of up to $4,000 on a variety of 2003 models.

The July program reduces rebates from $4,000 to $3,000 on a few models, but it includes consumer incentives on several 2004 models that are beginning to reach showrooms.

For example, GM is offering $1,000 customer cash on 11 2004 Chevrolet, GMC, Oldsmobile and Pontiac cars and trucks and $1,500 cash back on a dozen other models.

John Smith, GM's group vice president for North American sales, service and marketing, said the new deals begin the automaker's "annual summer selldown."

The deals run through July 31. GM also will continue its 24-hour test drive promotion through Sept. 2.

Ford said its current programs will remain essentially unchanged through Sept. 2. They include cash rebates of up to $4,000, zero-percent financing for five years on many models and a $750 military appreciation discount.

Ford said six of its nameplates -- Focus, Taurus, Mustang, Crown Victoria, Escape and Expedition -- were ahead of last year's sales through June. Overall, however, Ford's sales were down 2.8 percent for the first six months of the year.

"These programs will help keep our momentum going as the economy gathers steam thanks to low interest rates, tax cuts and the stock market rebound," said Ford Division President Steve Lyons. "We think the second half of 2003 will be stronger than the first."

GM has been the leader in an aggressive pricing war in the United States, where incentives in recent months have reached unprecedented levels.

Still, sales have been tepid at best for Detroit's Big Three. In June, DaimlerChrysler AG's Chrysler Group, whose profits have been pounded in the pricing battle, saw its sales rise 6.3 percent. GM was up 1.2 percent, while Ford slipped 1.2 percent.

Among the Asian automakers, sales were up 21.5 percent at Nissan, 10.9 percent at Toyota, 9.6 percent at Mitsubishi and 8.7 percent at Honda.

Current incentives offered by Chrysler, which include rebates of up to $4,500 on 2003 models and $3,000 on 2004 models, run through July 31.