Hummer H2 gets GM Incentive
Detroit July 24, 2003; Joe Miller writing for Bloomberg reported that General Motors Corp., which leads the auto industry in incentive spending, is offering its first discount on the Hummer H2 sport-utility vehicle, saying it wants to clear out inventories in preparation for the 2004 model.
The world's largest automaker introduced the close-out allowance on 2003 H2 models this month for dealers to use at their discretion, GM spokeswoman Heather Hall said. She wouldn't disclose the amount.
The discount on the $50,000 SUVs "was built into our business plan" and won't be offered on the 2004 model when it goes on sale in September, Hall said.
June's H2 sales in the United States fell 16 percent from May to 2,445 vehicles, the H2's worst month since it became available nationwide in July 2002. Through June, GM sold 35,511 H2s since it introduced the model last year, according to Autodata Corp.
GM, which offered rebates of as much as $5,000 and no-interest financing in the second quarter, spent a record $3,928 per vehicle on incentives in the United States during the period, according to CNW Marketing Research.
Sunday, the automaker added a $1,000 discount for current owners of GM vehicles if they purchase a new vehicle that is the same brand.