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