It appears that Toyota is not the only one offering 0 percent financing. General Motors, perhaps in an attempt to capitalize further on Toyota’s current vulnerability, is offering 0 percent financing for 60 months on most 2010 new vehicles.
Although GM says the decision to launch its new sales incentive has no relation to Toyota’s similar incentive program, the timing seems a bit too convenient.
“That was our plan prior to hearing about what Toyota was going to do. We locked this in about a week ago,” GM’s vice president for U.S. marketing Susan Docherty.
Overall auto sales during the month of February were up by 13 percent. GM specifically announced a 12 percent increase last month.
While following in Toyota’s footsteps during such as tumultuous time for the Japanese automaker may seem like a bad idea, it may be just what was needed for Langs Chevrolet and other dealerships. With incredible deals being advertised in on the Web, on TV, and elsewhere, the new incentives have already spurred foot-traffic in countess showrooms. Incentives have already helped Clermont Chevrolet attract many shoppers that also had considered Toyota products.
GM, like Toyota, is still trying to rebuild its brand and revive sales momentum. Although the company still has plenty of challenges ahead, it doesn’t seem to be causing concern among GM execs based on Docherty’s confidence in their current lineup.
“Obviously, with our hot launch products, we don’t need to put 0 percent financing for 60 months on that,” she said. “That 0-for-60 will be primarily on products like our pickups.”
In addition to its 2010 models, the new inventive plan also covers most 2009 models with 0 percent financing for a 72 month period.
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