DETROIT — General Motors Corp. will begin offering a $2,002 rebate to replace its just-ended 0 percent financing program, a sign automakers still feel a need to lure consumers in a weakened economy.
The cash rebate would be offered on all 2001 and 2002 GM vehicles, GM spokesman Jeff Roegner said Thursday.
"GM and its dealers are coming off an extremely successful marketing effort with 'Keep America Rolling,' and we intend to continue our sales momentum," said Bill Lovejoy, group vice president of GM North America vehicle sales, service and marketing.
The rebate is expected to cost the automaker less than the no-interest loans it began offering in September to counter fears that business would lag after the terrorist attacks.
Ford Motor Co. and DaimlerChrysler AG followed GM's lead on the 0 percent financing program because of its popularity. Their financing offers are slated to expire within two weeks.
Analysts estimate the zero percent financing represents a savings of anywhere from $2,500 to $7,000 throughout the course of the loan.
Executives at all three major automakers have discussed wanting to de-escalate the industry's rebate wars.
GM's latest program is an admission that heavy discounts are needed to keep sales from dropping, given the weak economy and the intense competition.
No comments
Commenting is turned off for this story.