US Carmakers Boost Incentives to Shift Vehicles

11 July 2007

DETROIT: US automakers are accelerating their incentives to entice customers onto dealer lots. General Motors has launched new discounts, while the Ford Motor Company is extending its no-interest loans in an effort to halt a continuing slide in domestic sales.

Both companies recorded a decline in June, with GM's cars and light trucks dropping by over 24% and Ford posting an 11.9% slip.

GM is waiving payments for up to six months on some SUVs and offering cash-back on large pickups in some regions.

Comments company spokesman John McDonald: "There is a lot of competition in the marketplace now. We want our vehicles to be competitive."

Ford is extending its three year no-interest loans offer to 2007 Ford Lincoln and Mercury marques, while on some models customers can get cash rebates of up to $2,500 (€1,832; £1,240).

  • Meantime, Ford has set a deadline of July 19 to potential bidders for its European luxury marques, Jaguar and Land Rover, which it put up for sale last month [WARC News: 12-Jun-07].

    Buyers are likely to come from the serried ranks of private equity groups. Among those thought to have received information from Ford are Cerberus Capital Management, which paid $7.4bn in May for the Chrysler automaking business, Ripplewood Holdings and One Equity Partners.

    Ford has said it would prefer to sell the businesses as one lot but it has made provision for disposing of them individually.

    Data sourced from New York Times, Bloomberg and Financial Times Online; additional content by WARC staff