General Motors’ woes continue, but the automaker has announced a quantum new incentive program as well as other financial measures to reverse its suffering sales.
The carmaker (GM, Fortune 500) will offer a brief zero percent finance program for up to six years on 2008 models ranging from the large SUV, Chevrolet Suburban, to two-seat sports cars like the Pontiac Soltice.
The zero percent promotional program, which will only be available from June 24-30, will be called the "72-hour sale.”
The name of the promotional program comes from the number of hours the typical dealership will actually be open for business during that time.
The manufacturer simultaneously announced several other changes:
* A price increase averaging 3.5 percent on most 2009 models
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A reduction is production volume of trucks and SUVs through the end of the year since sales large pick-up trucks and SUVs have decrease sharply as a result of higher gas prices and slowed economy.
* Citibank has been contracted by GM to help with a previously announced strategic review of the company's Hummer SUV brand.
The moves were announced to “spark the market here at the end of the (fiscal) quarter,” said a GM spokesperson.
GM's most popular newly introduced or redesigned models like the Chevrolet Malibu, Cadillac CTS and other hybrids and strong-selling brands are not in the zero percent financial offer.
Customers trading in a GM car or truck they now own who forgo the financing offer may be eligible for cash incentives that could total as much $7,000 on some vehicles if they're combined with existing programs.
For the 2009 model year, GM said almost all car and truck models will have higher sticker prices. The average increase will be a little more than $1,000, or 3.5 percent of the current price.
