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Auto Incentives War Rages On as US Car Sales Surge

News, 06 September 2002

The incentives battle raging between America’s big three carmakers looks set to intensify, as new figures show the cut-price deals seem to be working.

US auto sales jumped 13% year-on-year in August, with the dominant trio, General Motors, Ford Motor Company and Chrysler Group, all posting hefty increases.

Announcing the results, GM – which, it had been thought, was dropping cheap financing deals [WAMN: 27-Aug-02] – declared that it would continue its Overdrive incentives scheme.

The auto giant will offer consumers the sizeable carrot of interest-free three-year loans or cash rebates of up to $2000 (€2005; £1274) on its 2003 Buick, Cadillac, Chevrolet, GMC, Oldsmobile and Pontiac models until October 31.

The move provoked an immediate retaliation from Chrysler, which introduced 0% deals on most of its own 2003 models. Ford is expected to follow suit.

GM saw August car and truck sales rise 18% on the same month in 2001, hitting 492,434 vehicles. Ford was up 12.1% to 365,406, while Chrysler surged 24% to 210,855.

There were healthy results outside the big three as well, BMW, Toyota and Honda all posting sales increases of 13%.

Data sourced from: multiple sources; additional content by WARC staff