It is surprising that it did not happen sooner. GM (NYSE: GM) has increased the incentives it gives on pick-ups and SUVs. High gas prices have undermined the sales of these light trucks.
According to Reuters, "General Motors Corp has raised cash rebates on some of its large sport utility vehicles and pickup trucks to a total of up to $6,000."
Will it help? The easy answer is "no," because Americans are moving to fuel-efficient cars. But the probable answer is "yes." An SUV driver who uses 30 gallons of gas at $4 per gallon will get a year of gas for free with a $6,000 incentive.
A number of pick-up customers, especially small-business owners, have waited longer than usual to replace their current vehicles to save money. For people who need a new truck, the incentives are likely to push them over the line.
Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.
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Reader Comments (Page 1 of 1)
6-12-2008 @ 7:46AM
Elwood said...
I feel bad for all the USA workers tied to the auto car companys. It's truely a shame when Americans can't see beyond their own noses and buy something other than what's made in this country. Congradulations to all of those people that are buying imports. Save the dollars you think you are saving from the difference is fuel cost to futher positon yourself for a job working at a fast foods when your job drys up too
6-12-2008 @ 1:47AM
gumbo koontz said...
Why is GM in a hurry to sell SUVs and PickUps if they are closing factories that churns those guzzlers . They can call them 2008-2013 models and let them gather dust on the lots. So what!! Dont blow the profits on them. They are good profits and non perishable through 2013. I am not interested in selling guzzlers and excarabitng the supply / demand balance in oil. We should all aim to reduce our consumption by millions of barrels a day by going slow on guzzler deals for years to come. Why blow $6000 profits on those rebates that buyers dont need cuz they already get tax breaks for buying those guzzlers for buisness uses.... If they dont have tax breaks, touigh for em...