General Motors will extend its offer of employee discounts to all US buyers until the end of September as it tries to boost sales of its cars and trucks, Bloomberg News reported on Thursday.
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The discounts apply to most 2005 models, GM spokeswoman Deborah Silverman told the news agency, adding that some large 2006 sport utility vehicles and pickup trucks will be added to the program for the first time. The promotion was to end on September 6.
Bloomberg News said the programme, which began in June, helped boost GM’s US sales by 47% that month and 15% in July. Ford and Chrysler soon followed, helping slow Asian automakers’ gains in US market share. June and July were the first consecutive months that Asian companies failed to increase share since 2002, the report noted.
According to the news agency, Moody’s Investors Service on Wednesday lowered GM and Ford to high-risk, high-yield junk status after the two companies lost money making cars and trucks in the US in the first half of the year. Moody’s reportedly said GM needs to make changes that, among other things, reduce its dependence on sales incentives to attract buyers.
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