GM Offering Zero Percent Interest on Some 2007 Vehicles

09/27/07

General Motors will offer incentives including zero-interest loans for terms to five years on some Chevrolet Silverado and GMC Sierra large pickups.

Large pickup market share has rebounded to near 15%, a 20-month high, but high incentives are driving sales. Price competition is driving down pickup prices. Average incentive spending on big pickups was $4,500 in August, the highest in a year.

GM had a good August and wants to "continue its sales momentum." (move excessive 2007 models from inventory) The campaign includes $1K discounts on 2007 Chevy Impala and Saturn Ion sedans, and GMC Yukon.

$1K incentives are already being offered on 2008 Buick Lucerne and Pontiac G6.

Large pickups, which represent about 25% of GM's US sales, will likely have an inventory overhang. GM may institute more production cuts.