GM to offer zero-percent financing on trucks

DETROIT June 23, 2008; Soyoung Kim writing for Reuters reported that General Motors Corp is offering zero-percent financing for 72 months on pickup trucks and SUVs as record-high gas prices have hurt sales of large vehicles, a GM dealer briefed on the plans told Reuters on Monday.

The offer, which covers full-size pickup trucks such as the Chevrolet Silverado, will start on Tuesday and last until the end of the month, the dealer said.

GM's U.S. sales chief Mark LaNeve briefed dealers on the plans early on Monday.

"They announced very aggressive, strong incentives, which are not just limited to trucks and SUVs, but cover nearly 80 percent of GM's models," the dealer said.

The incentives come as the No. 1 U.S. automaker struggles with a deepening slump in sales of gas-guzzling pickups and sport utility vehicles. U.S. consumers are increasingly shifting to fuel-efficient cars and crossovers with gas prices at more than $4 a gallon in some areas.

GM's U.S. sales are down 17 percent through the end of May from a year earlier, led by a 23 percent drop in truck sales. In May, GM's truck sales tumbled nearly 40 percent.

Meanwhile, the automaker also plans to raise average prices for its 2009 models more than 3 percent to reflect higher commodity prices and added content for the vehicles, the dealer said.

Regarding GM's ongoing review of its Hummer brand, the automaker told dealers it has retained a third-party for research, the dealer said.

GM announced early this month it was reviewing Hummer and could sell the military-derived SUV line.

GM is scheduled to hold a conference call later on Monday to brief the media on plans to raise incentives and 2009 vehicle pricing.

Editing for Reuters by Maureen Bavdek