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News
GM sets no-interest loans
September 20, 2001: 9:01 a.m. ET

Program to counter sales slump covers 2001 models including Saab, Saturn
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NEW YORK (CNNfn) - General Motors is offering interest-free financing on all its U.S. car and truck models in an effort to boost sales in a slowing economy, further hampered by last week's attacks in New York and Washington, according to a published report Thursday.

GM's (GM: Research, Estimates) "Keep America Rolling" incentive includes interest-free financing on new vehicle loans of 36 months and 60 months on 2001 models, according to the Wall Street Journal. The program also covers GM's Saab and Saturn units, which are not usually included in incentives.

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The company said the new plan will not substantially cut into its profit because it will replace existing finance incentive programs, the Journal reported.

"With a program like this, sometimes the savings could be up to $6,000 to $7,000," Lou Smith, general manager of a GM Houston dealership told the paper.

Auto sales at 5,000 dealers fell 23 percent this past Monday from the average of the previous four Mondays, and Tuesday's sales fell 38 percent, excluding results from Sept. 11, the paper reported, citing a survey by J.D. Power & Associates.

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"We know this is a difficult time to talk about an incentive program, but GM has a responsibility to help stimulate the economy by encouraging Americans to purchase vehicles, to support our dealers and suppliers, and to keep our plants operating, and our employees working" GM North American President Ron Zarrella was quoted by the Journal.

GM's move contrasts to Ford Motor Co.'s (F: Research, Estimates) decision to close five U.S. factories and cut its third-quarter production by 12 percent. Ford said the closings will result in a profit shortfall, while GM reaffirmed its earnings expectations earlier this week.

Other automakers have been critical of Ford's reductions. "I think it is our responsibility to try to do whatever we can to contribute to stability," Dieter Zetsche, the head of DaimlerChysler's (DCX: Research, Estimates) Chrysler Group told the paper "Not to over react...not to try to pre-empt shortfalls on the demand side with production cuts."

Prior to last week's attacks, Chrysler cut prices on many of its newer models and said its has no plans to change that program.

Shares of General Motors closed at $43.38 Wednesday. graphic

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.