General Motors (NYSE:GM) has seen a 21% increase in automotive sales over the last 12 months reports show. The four brands Chevrolet, Buick, GMC, and Cadillac seeing a strong upsurge of 43% on some models. Their other brands, Saturn, Hummer, Pontiac, and Saab only sold 27,00 vehicles, but are slated to be discontinued.
Why The Jump In Sales
Redesigning the Chevy Equinox and Buick Lacrosse helped the upsurge, but the majority of this rise in sales over the competitors is due to the incentive programs being offered. Low interest rates and rebates being the biggest contributors to the incentives. With incentive spending being about $3500 dollars per vehicle, according to Edmunds.com, theirs is above the industry average by $700 dollars. Although J.D.Powers showed a different story.
Weren’t Automakers Going To Stop The Incentives
In the last few years the big auto-makers have vowed to rely on their good name to and the assets of their products to sell them. Incentives had started waning, but the recent calamities of recalls and the down-turn in the economic situation there was a need to bring them back. Interest rates and rebates aren’t the end of the incentives either, There is bonus cash and extended warranties.
The Thing That Set It All Off
Toyota’s answer to their sales struggles and then the massive recall of over 8 million cars globally caused havoc in the industry. Almost every manufacturer had to answer their free maintenance, and zero interest among their other programs. Without intending to, it would seem, Toyota (NYSE:TM) has created an automotive war of sorts that has aided in our economic recovery. Most every major auto manufacturer has experienced a jump in sales in the last 12 months.