DETROIT, Sept 19 (Reuters) - General Motors Corp. said on Thursday it will offer interest-free loans until Sept. 30 on all its remaining 2002 model year vehicles, following a new move by Ford Motor Co. to lure buyers to its dealers.
GM, the world's largest automaker, said it is now offering loans with no interest for up to five years on all its 2002 models, including its Saab cars. It also boosted cash rebates on a number of models.
Similar offers helped boost its sales in July and August to near-record levels, and prompted much of the industry to respond with incentives of its own.
But GM pared back on the deals earlier this month, saying it had low inventories of 2002 vehicles and wanted to focus on selling 2003 model year vehicles instead. GM Vice Chairman and Chief Financial Officer John Devine told analysts earlier this week that September's sales will not reach August's highs, in part because GM was "basically sold out" of 2002 models.
Earlier this month, Ford said it would let customers buy 2002 model vehicles and make no payments to January 2003. Such offers had been uncommon in the auto industry. A GM spokeswoman said the automaker wanted to be competitive with the "very aggressive" programs from other makers.