clarinews@clarinet.com (JAN A. ZVERINA, UPI Auto Writer) (02/03/90)
DETROIT (UPI) -- General Motors Corp.'s Oldsmobile division said Friday it will extend its dealer incentive program until May 2, while its Chevrolet and GMC divisions extended offers but with lower rebates on most trucks. Oldsmobile also extended its only direct-to-customer rebate of between $1,000 and $1,500 on its Cutlass Supreme cars, depending on model year. But like other GM divisions, it ended its 4.8-percent annual financing on loans up to 48 months' long on that mid-sized model. The bulk of Oldsmobile's incentive program, viewed by some industry analysts to be a test case for GM, is geared more toward giving dealers cash to sell cars, enabling them to divide it as they see fit between advertising or rebates to customers. ``Dealers are telling us they're finding this program to be a successful tool in tailoring incentives to their individual markets and circumstances, and customers are responding,'' said David Lahti, Oldsmobile's general sales and service manager. But Oldsmobile's sales so far this year through Jan. 20 were down 12 percent, while sales for the 1990-model year that began in October were down 29.6 percent, largely because of the overall slump in U.S. vehicle sales since the fall despite buyer incentives. Some industry observers also said consumers may be at a disadvantage because Oldsmobile has not publicized the amount of the dealer incentives and what models they apply to. ``The factory tends not to publicize them, so the buyer is never quite sure if he or she is getting a good deal or not,'' said Michael Luckey, of The Luckey Consulting Group in Tappan, N.J. ``But nine out of 10 dealers prefer to get the cash themselves and spend it on how they see fit.'' Chevrolet lowered cash rebates on some truck models, including most Astro van (from $1,000 to $750), S-10 Blazer ($1,250 to $1,000) and its Suburban ($1,500 to $1,000). GMC made similar cuts. The programs follow by one day similar ones from GM's Buick, Chevrolet and Pontiac car divisions to spur vehicle sales. Other GM divisions except Cadillac are offering customers a wide range of cash rebates, or the alternative of 6.9 percent financing on loans up to 48 months to spur sales, although a GM spokeswoman said many divisions also have dealer incentive programs in place to help spur sales into the spring. Rival carmaker Ford Motor Co. is expected to announce renewed buyer offers soon to replace ones that expire Feb. 5 and March 31. Earlier this week, Chrysler Corp. extended its guaranteed rebates on most vehicle lines except minivans through the end of February. That program guarantees Chrysler will pay buyers the difference should it raise rebates on any eligible model between early February and Sept. 30, 1990.