GM adds cash incentives

Automaker hopes to boost sales with up to $3,000 in discounts on more than 15 models.

Greg Bensinger / Bloomberg News

General Motors Corp. is increasing cash offers for the final two weeks of the month on many 2007 and 2008 models as it seeks to sustain its surprise January sales gain.

Starting today, GM will offer $1,000 cash back on top of existing rebates on more than 15 models such as the 2008 Buick Lucerne sedan, Chevrolet Silverado regular cab pickup and Pontiac G5 coupe, GM said in an e-mailed statement Wednesday.

The offers are timed to coincide with the U.S. Presidents Day holiday on Monday.

The increase means some 2008 vehicles, such as the GMC Yukon sport-utility vehicle, may be discounted by as much as $3,000, U.S. dealers said. GM was the only U.S. automaker to boost sales last month, posting a 2.6 percent gain in deliveries. Industrywide results slipped 4.3 percent, according to Autodata Corp.

"GM hasn’t been real aggressive with their incentive spending in a while," said Robert Collins, new-car sales manager for Bill Pierre Chevrolet in Seattle. "The $1,000 helps a little bit, but I’d have preferred some more flexible rebates that we could offer to customers to really seal the deal."

Chief Executive Officer Rick Wagoner has said he hopes to hold incentive spending at roughly 2007 levels to help resale values and profits per vehicle sold.

The Detroit automaker’s average incentives rose 2.7 percent last year, to $2,975, according to Edmunds.com.

The offering is "the latest strategic and tactical program designed to boost retail sales in the traditionally slower winter sales months," GM said.

Saturn Vue SUVs and Aura sedans as well as 2007 Corvette sports cars are included in the promotion, GM said. All Cadillac, Saab and Hummer vehicles are excluded.

For the remainder of this month, salesmen can continue to use $250 certificates, granted by GM, to help sweeten the deal on some 2007 and 2008 large pickups, dealers said.

The automaker doesn’t disclose details of the so-called dealer bonus certificates, spokesman John McDonald said.

Previous offers of $2,000 bonus cash on older large pickups expired Wednesday.