GM, Ford announce new incentive programs

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Posted 11:45AM on Friday, March 1, 2002

DETROIT - General Motors Corp. said Friday it once again was offering zero-percent financing on most new vehicles after a two-month hiatus, and Ford Motor Co. said it would extend its no-interest finance program. GM's program gives customers a choice of $2,002 customer cash or finance rates of zero percent for 36 months, 2.9 percent for 48 months or 3.9 percent for 60 months on most new 2002 Chevrolet, Pontiac, GMC, Buick and Oldsmobile vehicles through the end of March. Customers will have the choice of $1,500 cash or the cut-rate finance terms on Chevrolet Trailblazer, Silverado Extended Cab and Crew Cab, Suburban and Tahoe; GMC Envoy, Sierra Extended Cab and Crew cab, Yukon and Yukon XL. Cadillac, Saturn, Saab, Hummer, Chevrolet Corvette, GMC Envoy XL and all 2003 models are excluded. A plan to give current leasees a chance to return their vehicles early without penalty if they lease or buy another GM vehicle could be announced soon, GM spokesman Jeffrey Roegner said. Ford said Friday it will continue offering zero-percent financing and customer cash up to $2,500 until April 8 on most Ford brand vehicles. The automaker also will offer "loyalty bonuses" up to $1,500 on most 2002 Ford brand vehicles for returning lease customers. The bonuses, $1,000 for cars excluding the Thunderbird, and $1,500 for trucks and SUVs, are available through April 8 are in addition to current rebate programs. While GM temporarily ended its zero-percent interest program two months ago because of declining demand, Ford said its program continued to attract new customers and support from dealers. "Thirty percent of our customers who financed chose zero percent," Ford spokeswoman Susan Krusel said. GM launched the latest incentive war following the Sept. 11 attacks with its "Keep America Rolling" zero-percent finance program. Sales already were slumping before that date, but they slowed even further after the attacks until GM's program was launched later that month and its U.S. competition followed suit. GM's latest incentive tactic, $2,002 cash rebates with 5.9-percent rates, ended Thursday. DaimlerChrysler AG's Chrysler Group also offers low-cost financing and rebates, but has chosen to showcase its seven-year, 100,000 mile powertrain warranty February auto sales figures were due to be reported Friday and industry observers believed they would show a decline from sales during a strong February 2001, but still robust.