GM Trims Incentives on Some Vehicles

DETROIT December 2, 2003; Reuters reported that General Motors Corp. on Tuesday said it trimmed some of its U.S. sales incentives by raising the finance rates on mid-size sport utility vehicles and cutting the cash rebates on some small cars.

GM executives have said in recent months that they hoped record high sales incentives could be trimmed in coming months as the U.S. economy recovers and the automaker rolls out new models. Analysts expect GM to report a double-digit gain in U.S. sales for November later on Tuesday.

"The only across-the-board change we made is on our mid(-size) utilities," GM spokeswoman Deborah Silverman told Reuters.

GM raised the finance rate on loans for the Buick Rendezvous, Buick Rainier, Chevrolet TrailBlazer, GMC Envoy and other mid-size SUVs to 1.9 percent on 60-month contracts from 0 percent previously, and to 3.9 percent from 2.9 percent on 72-month contracts, Silverman said.

"Most of the other (SUVs) were already at that (level)," Silverman said.

GM also cut its cash rebate offer on several cars, including the Chevrolet Cavalier and Pontiac Sunfire to $3,000 from $4,000 previously, and on the Pontiac Grand Am to $3,000 from $3,500 .Silverman said.

GM raised the cash rebate on two models, to $2,500 from $2,000 on the Saturn L-Series, and to $1,500 from $1,000 on the Buick Rainier.

The incentives are effective through Jan. 12.

For its remaining 2003 model-year vehicles, GM cut the cash rebate on the Cavalier and Sunfire to $3,500 from $4,500 previously. Also on its 2003 models, GM raised the cash rebate on its Pontiac Grand Am, Pontiac Grand Prix, Chevrolet Malibu, and Oldsmobile Alero cars by $500 to $3,500, Silverman said. Those incentives expire on Jan. 2.