GM, Chrysler Offer Holiday Incentive Packages

Detroit December 6, 2002; John Porretto writing for The AP reported that two of the three major U.S. automakers have sweetened their incentive packages for the holidays, a move predicted by some analysts as the companies try to meet year-end sales goals.

General Motors Corp. on Thursday announced a holiday financing package for several 2003 sport utility vehicles. Earlier this week, DaimlerChrysler AG's Chrysler Group improved financing terms on most Dodge and Chrysler minivans for the coming month.

GM, already offering no downpayments or finance charges on many models, has enhanced its "Zero, Zero, Zero" program by offering no-interest financing for up to 60 months on 13 SUVs.

The world's largest automaker also will give $1,000 in cash on 11 other '02 and '03 models.

The new deals at GM begin Friday and run through Jan. 2.

SUVs included are the Chevrolet Trailblazer, Trailblazer EXT, Tracker, Blazer, Tahoe, Suburban, GMC Envoy, Envoy XL, Yukon, Yukon XL, Yukon Denali, Yukon Denali XL and the Oldsmobile Bravada.

GM started the incentives battle in September 2001 with its "Keep America Rolling" no-interest financing promotion, and Ford and Chrysler followed with other programs.

Chrysler, for its holiday special, is offering $2,500 cash back or zero-percent financing for up to five years on most minivans through Jan. 2. Previously, the interest rates were 2.9 percent for 48 months and 3.9 percent for 60 months.

Ford Motor Co. has not announced any additional incentives for the holidays.

Merrill Lynch analyst John Casesa said earlier this week he expects incentive activity to increase this month as automakers strive to meet year-end market share targets.

Market share for domestic brands at Detroit's automakers -- GM, Ford and Chrysler -- plunged to just below 60 percent in November, the lowest level ever, amid continuing growth by Asian and European competitors.

Industrywide, U.S. car and truck sales fell nearly 13 percent last month compared with November 2001, when fresh incentive programs ignited vehicle sales.

Ford's sales were off 21 percent, GM sales were down 18 percent and Chrysler sales fell 12 percent.

Still, boosted by heavy, incentive-laden volume earlier this year, total U.S. light vehicle sales are expected to be between 16.5 million and 17 million at year's end, one of the best years on record.