Financial Times FT.com

GM to make U-turn over sales incentives

By Bernard Simon in Toronto and John Reed in London

Published: August 19 2008 17:57 | Last updated: August 19 2008 17:57

General Motors has backed away from a two-year drive to wean itself off incentives, highlighting the increasing desperation of US carmakers to counter the steep downturn in demand.

The Detroit carmaker is extending to all buyers of its cars the same generous discounts enjoyed by its employees, covering almost all 2008 models and some 2009 models. The offer typically cuts 10-12 per cent off a vehicle’s sticker price.

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