GM Steps Up Incentives Barrage in US Car Wars

24 July 2003

Margins among Detroit’s Big Three automakers promised to get ever tighter on Tuesday with General Motors’ escalation of the incentives war. In a new program that runs until September 2, present owners of a GM car or truck will collect a ‘loyalty discount’ of up to $1,000 (€877; £623) if they buy or lease a new GM vehicle.

And the cash comes in addition to the current zero percent finance carrot – which itself can lop up to $4,000 from the price of a vehicle.

The latest promo excludes Cadillac’s XLR roadster and SRX midsize SUV, as well as Hummer vehicles. Otherwise the $1,000 cashback applies to all new GM autos if they are bought to replace the same model; it drops to $750 if the customer buys a different GM brand from the one they currently run.

The deal closely resembles a program currently run by Ford Motor Company, whose spokesman Jim Cain shrugged-off suggestions that any victory in the current price war could be Pyrrhic: “Those programs are almost always there,” he said.

Data sourced from: USA Today; additional content by WARC staff