GM raises incentives on some large SUVs, trucks

DETROIT June 9, 2008; Poornima Gupta and David Bailey writing for Reuters reported that General Motors Corp has raised cash rebates on some of its large sport utility vehicles and pickup trucks to a total of up to $6,000 in the face of falling U.S. sales.

The increased incentives of as much as $4,000 cash back were being offered to current GM vehicle owners on models such as the Chevrolet Tahoe and Suburban SUVs, and up to $3,000 on pickup trucks such as the Chevrolet Silverado pickup.

The owner loyalty incentives also cover hybrid versions of the Tahoe and the GMC Yukon, the first time GM has offered any incentives on those large hybrid SUVs, it said.

The program, which is in addition to existing incentives of as much as $2,000 cash back, started on June 7 and runs to the end of the month, the company said.

GM's incentives follow Ford Motor Co's announcement this month that it would offer employee pricing rebates on full-size F-Series trucks to reduce inventories.

Overall, demand for vehicles has declined this year and the U.S. auto market is headed for its worst year in a decade amid high oil prices, weak consumer confidence and tighter credit.

The U.S. consumers' shift toward more fuel-efficient cars and crossovers has hit Detroit-based automakers and their truck-heavy line-ups particularly hard.

Editing for Reuters by Braden Reddall