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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (3839)	10/1/2002 4:00:47 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 57110

quote.bloomberg.com 10/01 15:47 GM, Ford Offer No-Interest Loans on Many 2003 Models (Update1) By Bill Koenig Dearborn, Michigan, Oct. 1 (Bloomberg) -- General Motors Corp. and Ford Motor Co. both started offering expanded no- interest loans on 2003 models today as automakers compete for market share and run short of 2002 models. General Motors is offering 60-month no-interest loans on 23 2003 model-year cars and trucks or cash rebates as high as $2,000 through the end of October, spokeswoman Elaine Redd said. DaimlerChrysler AG's Chrysler plans to review the larger rivals' new programs and respond by tomorrow, Gary Dilts, the automaker's senior vice president of sales, said on a conference call. General Motors, which took the lead on no-interest loans after last year's terrorist attacks to lure customers back to showrooms, extended the discounts today after its sales declined 13 percent last month. Ford's sales rose 3.2 percent, based on a daily selling rate, while Chrysler's were up 18 percent. Detroit-based General Motors ``threw down the gauntlet again,'' said IRN Inc. analyst Mike Wall, whose company forecasts vehicle plans for suppliers. ``They're taking lead on the old incentives game as they have all year.'' Ford is offering 36-month, zero-percent loans on almost all its vehicles in a program that runs through Jan. 2, spokeswoman Susan Krusel said. As an alternative, Ford is offering rebates of as much as $2,000 on the trucks and sport-utilities. Ford is reviewing General Motors' latest plan, she said. The pace of auto sales slowed in September following high levels in July and August that were driven by no-interest loans. Sales are forecast to rise 3.4 percent, based on the average forecasts of seven analysts. General Motors' sales were hurt partly by a shortage of some vehicles after strong sales in earlier months. ``I don't think we're going in the right direction in the long run because we're training people to wait for discounts,'' said Gary Dunbrack, auto industry analyst for State Street Global Advisors, which manages $770 billion in direct investments and index funds and owns shares of all the major automakers. General Motors also increased cash rebates on remaining 2002 models as high as $4,000. Most models not eligible for no-interest loans qualify for rates of 3.9 percent for five-year loans. Ford is offering a $1,000 cash rebate on the 2003 Expedition and $500 on the 2003 Escape, which are exempt from no-interest loans. Chrysler currently has 36-monh no-interest loans on some models, spokesman Marc Henretta said. Shares of Dearborn, Michigan-based Ford rose 4 cents to $9.84 at 3:21 p.m. in New York Stock Exchange composite trading. General Motors shares rose $1.97 cents to $40.87.