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although this sounds pretty familiar ...........
GM Offers 'Loyalty' Rewards to Up Sales
Monday, July 21, 2003
DETROIT (Reuters) — General Motors Corp. (GM) on Monday fired the latest salvo in Detroit's costly incentive battle, offering current owners of GM vehicles a "loyalty" discount of up to $1,000 if they buy or lease a new GM car or truck.
The program is in addition to the zero percent financing offer or cash incentives of up to $4,000 on most GM vehicles.
Owners of GM vehicles will receive $1,000 cash back if they purchase a vehicle from the same brand they currently own. GM owners get $750 back if they buy a different brand in the GM stable.
Excluded from the program, which expires Sept. 2, are Hummer vehicles, the Cadillac XLR (search) roadster and the Cadillac SRX (search) mid-size sport utility vehicle.
GM's average incentives per vehicle totaled $3,934 in June, up more than $1,300 from a year ago, according to industry analyst Autodata.
The GM offer is similar to a lease loyalty program that Ford Motor Co. (F) began on July 10.
Ford's deal, which expires Sept. 2, offers between $500 and $1,000 to returning lease customers on most vehicles in the Ford brand lineup. The Mercury Mountaineer mid-size sport utility vehicle, the Lincoln Aviator mid-size sport utility vehicle and the Lincoln LS sedan are also included in the program.
"Those programs are almost always there," Ford spokesman Jim Cain said.
Last week, GM and Ford reported sharply lower second-quarter profits, due in part to incentive costs.
GM Chief Financial Officer John Devine said last week that total U.S. vehicle sales in July could hit an average annual rate of 17 million in July, which would make it the strongest month this year. He also said that the rise in incentives appeared to be moderating.
GM's high incentives helped it post two successive years of U.S. market share gains in 2001 and 2002. But this year, its sales have fallen from last year's levels, and the automaker has lost about a point of U.S. market share.
posted by 216.205.22...
, Mon, 21 Jul 2003 17:45:12
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