DETROIT (Reuters) - General Motors Corp. (NYSE:GM - News) raised its cash incentives to consumers on many of its mid-size and full-size sport utility vehicles by $500 to $4,000, a spokeswoman said on Friday.
The automaker also gave its dealers incentives to sell more pickup trucks and SUVs, which have been slow sellers in recent weeks due to rising gas prices, the war in Iraq and the slow growth of new jobs, dealers said.
"It's been a little slower than normal," said one GM dealer, who asked not to be named. "Everybody's just loaded (with inventories of SUVs)."
GM must cut its high inventories of unsold SUVs and pickup trucks, which are running far above typical levels for this time of year, or it could be forced to cut production, which would hurt earnings, said George Magliano, director of automotive industry research at Global Insight.
"Unless they can move this stuff out the door, their production schedules are untenable," he said. "The plant closures for inventory correction have been minimal."
The higher cash rebates involve some of GM's most popular SUVs, including the Chevrolet TrailBlazer, Chevrolet Suburban, GMC Yukon and GMC Yukon XL.
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The automaker also gave its dealers incentives to sell more pickup trucks and SUVs, which have been slow sellers in recent weeks due to rising gas prices, the war in Iraq and the slow growth of new jobs, dealers said.
"It's been a little slower than normal," said one GM dealer, who asked not to be named. "Everybody's just loaded (with inventories of SUVs)."
GM must cut its high inventories of unsold SUVs and pickup trucks, which are running far above typical levels for this time of year, or it could be forced to cut production, which would hurt earnings, said George Magliano, director of automotive industry research at Global Insight.
"Unless they can move this stuff out the door, their production schedules are untenable," he said. "The plant closures for inventory correction have been minimal."
The higher cash rebates involve some of GM's most popular SUVs, including the Chevrolet TrailBlazer, Chevrolet Suburban, GMC Yukon and GMC Yukon XL.
Full Story HERE