GM raises rebates again

June 7, 2002 Reuteurs reported that General Motors Corp. said Thursday it has raised cash rebates on its midsize cars by $500 to $2,500, days after reporting a drop in U.S. vehicle sales for May.

Sales of GM's aging lineup of midsize cars were hit hard in May, while Toyota Motor Corp. and Nissan Motor Co. Ltd. recorded strong gains for their newly redesigned midsize cars, the Toyota Camry and the Nissan Altima.

The new sales incentives apply to such cars as the Pontiac Grand Prix, Chevrolet Malibu, Chevrolet Impala and Buick Century. Citing strong demand, GM recently added a shift at the factory that builds Impalas, to boost production.

Earlier this week, GM raised rebates on full-size pickup trucks and midsize sport-utility vehicles following poor May sales.

Midsize SUV rebates increased by $750 to $1,750. Rebates on most four-door, full-size pickups were raised from $1,000 to $1,500, while rebates on other full-size pickups were raised from $2,000 to $2,500.

GM's higher pickup truck and SUV rebates bring them in line with those offered by Ford Motor Co. However, Ford combines rebates with cheap interest rates on loans.

The Chrysler arm of DaimlerChrysler AG is offering a rebate of $1,500 on most Ram pickups, along with larger rebates on midsize SUVs, and an extended warranty on engines and transmissions.

GM also resumed lease pull-ahead offers that encourage customers to trade their leased vehicles for new models. The carmaker will offer the program through July for customers whose leases expire through December.