GM Adds U.S. Incentives on Midsize SUVs, Ford Changes Incentives

DETROIT May 6, 2004; Reuters reported that General Motors added new incentives on its midsize sport utility vehicles following new offers by competitors and weaker-then-expected U.S. sales in April.

GM's new incentives include $1,000 cash back plus zero percent financing for loans of up to five years, which can be combined with a previous $1,000 "bonus cash" program. Consumers who forego the loans can also choose to take cash rebates of up to $4,500 on many SUVs, pickups and minivans, which include the $1,000 "bonus cash."

GM's sales in April rose less than 1 percent, far below the 4 percent to 5 percent gain that some Wall Street analysts had expected, despite its "Truckfest" incentive program launched last month.

However, GM said its "Truckfest" incentive program on SUVs, minivans and pickup trucks, which runs through June 1, helped boost sales of midsize SUVs by about 4 percent.

Ford Motor Co. on Wednesday modified its incentives, offering a cash rebate of $3,000, or $2,000 and interest-free loans for up to five years, on its Explorer, Expedition and Excursion SUVs and the Freestar minivan.