The "Red Tag" sale, which started November 15 and ends January 2, is offering no-interest loans for five years on all 2007 models of Chevrolet, Pontiac, Buick, GMC and Saturn, excluding the Chevrolet Corvette and the C-4500 series Chevrolet and GMC trucks, GM spokesman John McDonald said.

"This is just the traditional marketing period at year-end when all automakers offer incentives to help remove prior-year inventory and introduce people to 2008 inventory," GM spokesman John McDonald said.

Under the program, incentives on the 2008 models will allow dealers to offer their own price reductions to create special pricing on vehicles.

GM’s U.S. sales are down 6 percent this year as the automaker has struggled with tough competition, high gas prices and a weak housing market that has crimped consumer confidence.

GM reported a record $39 billion quarterly loss earlier this month, primarily reflecting a tax accounting change. Its shares have fallen nearly 20 percent since then.

GM, which used to be known for massive discounting, has been trying to stick to a strategy of clearer pricing and lower incentives in a bid to increase profitability and boost the resale value of its vehicles.