GM Attempts Inventory Shift With Zero Percent Financing

23 September 2004

First it was Ford Motor Company, now it's the turn of General Motors to use incentives in an attempt to shift unsold stock.

The promotion offers zero percent finance for three years and applies to brands such as Chevrolet, Pontiac and GMC.

American car dealers have been notified of the program, due to run from September 28-30, which GM hopes will result in a clearance sale of unsold 2004 models.

Ford recently applied similar tactics, offering record discounts with car and light truck sales [WAMN: 08-Sep-04] as both auto giants suffered a slump in sales and were forced to cut back production for the fourth quarter.

But analysts such as Mike Wall from CSM Worldwide question whether consumers may get a taste for such sale sweeteners: "once this is over, what's next? Are consumers going to expect these kinds of incentives on '05 models? My answer is: probably, or pretty close to it."

Data sourced from: New York Times; additional content by WARC staff