GM's Wagoner says cash incentive program extension not ruled out

BERLIN AFX reported that General Motors Corp president and chief executive officer Rick Wagoner said he does not rule out an extension of its cash incentive program when it ends on Feb 28.

In an interview with Handelsblatt newspaper, Wagoner said GM is pushing for an aggressive policy on giving discounts to customers and this month launched its "GM Overdrive" program offering 2,002 usd in cash in return for the purchase or lease of any new 2001 or 2002 Chevrolet, Pontiac, GMC, Buick, Oldsmobile or Cadillac car or truck through Feb 28.

"I would not rule out its extension," he said.

He said sales incentives are necessary because US customers always want to make a deal.

It would therefore be "risky" to assume radical changes will happen in US automotive market sales, he said.

The first signs of improvement in the US car business are being seen, he said, but added that the economic environment continues to be weak.

He said major confidence shown by consumers and a good climate on the US real estate market could indicate an upward trend in the economy.

He would "basically not rule out" the possibility that overall volume sales in the US market might have to be revised upward to 16 mln units form the current estimates of about 15.5 mln.

The next two to three months will be decisive, he added. He said although GM must pay a closer attention to costs this year, an increase of its market share is possible.

"We have a great chance to do that" with the help mainly of launching new models, he said.

The report said that while Ford Motor Co and DaimlerChrysler AG unit Chrysler are closing down plants and cutting thousands of jobs, Wagoner believes his company will not be severely affected. "I hope that there will be no big cuts," he said, adding the economy's recovery will play a role.