Dealers Say GM Raises Some 2004 SUV Incentives

DETROIT November 7, 2003; Sholnn Freeman writing for Dow Jones reported that General Motors Corp., after a month of sliding sales and mounting inventory, fattened incentives on large 2004 sport-utility vehicles by as much as $1,000, according to dealers.

For example, GM is now offering $3,500 customer rebates on Chevrolet Tahoe and Suburban and GMC Yukon SUVs, or 0% financing for 48-month loans and 1.9% for 60 months. In October, GM was offering $2,500 rebates and only offered 0% financing for 36-month loans.

Dealers say GM also extended a lease pull-ahead program targeting existing GM customers who have leases set to expire between Dec. 1 and May 1.

A more complete picture of GM's strategy is hard to know. Dealers who reported the changes were located in Western and southern states. Other dealers, in different parts of the country didn't report major changes. GM spokeswoman Deborah Silverman said the company's incentive levels remain "very comparable" to last month's offers.

Nationally, she said GM is offering $2,500 rebates on 2004 versions of those SUVs in lieu of special financing deals. She said GM's regional sales officials often tweak incentive programs on their own.

GM's sales fell 7% in October, contributing to a growing level of inventory. At the end of October, GM had 89 days' supply of inventory, compared with 71 days' supply at the same point last year, according to Autodata.

One dealer said GM regional sales officers were "howling" about October's poor showing, referring to the month as the worst of the year. Ms. Silverman said the auto company's sales suffered last month from a tough year-to-year comparison, when GM's sales were strong.