GM Ups Discounts to Sell Pontiac and Saturn Inventory

DETROIT December 29, 2009; Kevin Krolicki writing for Reuters reported that General Motors Co, which is winding down its Pontiac and Saturn brands, has offered dealers $7,000 per car to clear remaining inventory through Monday, the company said on Tuesday.

GM had already been offering discounts of $6,500 or zero-percent financing for as long as six years to consumers who buy remaining Saturn and Pontiac models.

The sweetened incentive offer, which was announced to dealers earlier this month, means an effective discount of up to 49 percent on the cheapest Pontiac, the G3 hatchback.

The incentive offer, which could give GM's new car sales a boost at the end of the month, was first reported by the Wall Street Journal.

GM's U.S. sales have dropped 32 percent since the start of the year through November.

The automaker, which emerged from bankruptcy in July after taking more than $50 billion in government aid, is focusing on four brands in the U.S. market: Chevrolet, Cadillac, Buick and GMC.

GM is closing Saturn and Pontiac. A deal to sell Hummer is pending, and GM plans to close its Swedish brand Saab beginning as soon as next month if a deal to sell it cannot be reached.

GM will provide the cash payment to dealers who buy vehicles already on their lots to put into the service fleets that many dealers maintain.

Vehicles purchased in that way by dealers can then be sold to consumers as used, GM spokesman Tom Henderson said.

Editing for Reuters by Derek Caney