GM offers $1,000 incentive to Toyota owners

byPeter Valdes-Dapena, senior writer


NEW YORK (CNNMoney.com) -- General Motors is offering incentives of $1,000 and low financing rates specifically for Toyota customers worried about their recalled vehicles, beginning Wednesday.

"We decided to make this offer after receiving many e-mails and calls from our dealers, who have been approached by Toyota customers asking for help," GM said in a statement. The offers will run through the end of February.

2010_chevrolet_equinox.03.jpg
2010 Chevrolet Equinox

GM is offering $1,000 rebates or up to $1,000 to help pay off current leases on Toyota products. The automaker is also offering 0% financing on most models for Toyota customers. The offers apply to 2009 and 2010 model year cars.

Such "conquest incentives" -- incentives targeted at owners of other manufacturers' vehicles -- are common in the industry, GM spokesman Tom Henderson said.

In this case, however, the incentives are designed to take advantage of Toyota owner's worries at a time when they're concerned about the safety and quality of their cars.

Toyota announced last week that it was recalling 2.3 million cars, SUVs and trucks for a problem with a potentially sticky gas pedal. This was after the company recalled 4.2 million vehicles -- many of them the same as last week's recall -- for a problem in which the gas pedal could become stuck on the floormat.

Toyota recently announced that will temporarily stop selling models affected by the most recent recall, including some of their most popular products like the Camry sedan and the Rav4 small SUV.

The problem plays to GM's current strengths, said James Bell, an analyst with Kelley Blue Book's KBB.com. Some of GM's strongest products, like the Chevrolet Malibu sedan and Chevrolet Equinox SUV, are strong competitors to products Toyota is now not selling.

"The Equinox is the obvious buy over a Rav4," he said.

If the Chevrolet dealers were still selling last year's Equinox, before the new, completely redesigned model was introduced, GM's position wouldn't have been as strong, he said. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Find Your Next Car
Index Last Change % Change
Dow 17,793.34 -134.86 -0.75%
Nasdaq 4,899.78 -39.55 -0.80%
S&P 500 2,074.11 -15.35 -0.73%
Treasuries 2.24 0.06 2.76%
Data as of 2:30pm ET
Company Price Change % Change
Bank of America Corp... 16.17 -0.18 -1.10%
Apple Inc 123.73 -2.07 -1.65%
Chesapeake Energy Co... 15.01 -0.85 -5.36%
Microsoft Corp 46.39 -1.21 -2.54%
Frontier Communicati... 6.00 -0.75 -11.05%
Data as of 2:15pm ET
Sponsors

Sections

Jobs at Disney, the NCAA and UPS, as well as warehouse, babysitting and journalism jobs are some of the most searched on Google in 2015. More

Big Idea Week kicked off in New York City, and it brings the entrepreneurship of the tech industry -- and its workers -- into the classroom. More

Lori Greiner, an investor on ABC's "Shark Tank" offered advice for women looking to be more successful in business. More