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