Corp., which enters a second day of bankruptcy hearings today over the sale of the auto maker’s best assets to a new company, launches a new marketing program targeting mostly ‘09 SUVs and products from its lame-duck brands.
The sale, which begins today and ends July 6, offers financing as low as 0% for well-qualified buyers on select models including, ‘09 model Chevrolet Suburban and GMC Yukon XL fullsize SUVs and the entire range of ‘09 Pontiac passenger cars.
Buyers can save upwards of $12,000 through the new marketing plan on the Suburban and Yukon XL.
“This is traditionally a holiday selling opportunity, so it’s not unusual for us, or others in the industry, to have a sale at this time,” GM spokesman John McDonald says.
GM plans to wind down its Pontiac division by the end of the year as part of its new go-to-market strategy featuring four brands – Chevrolet, Cadillac, Buick and GMC.
A number of other vehicles fall under the incentive plan, depending on the region, but could include models such as the new-for-’09 Chevy Traverse large cross/utility vehicle and all models from the auto maker’s Saturn and Saab brands.
GM reached agreements to sell Saturn and Saab last month, although the transactions have not been finalized.
McDonald says GM’s captive financing unit, GMAC LLC, will back the 0% program. That’s good news for the auto maker, which has struggled to attract consumers with juicy deals because of GMAC’s struggles during the credit crisis.
The hot-selling Chevy Camaro sports car, for which GM is struggling to meet demand, is not included in the program although 0% financing is available to qualifying buyers.
GM reports June sales results later today. Experts expect another month of slow sales from all auto makers, but further stabilization in the market.
GM also announces alongside the new marketing plan that it will have 74 models potentially eligible for the federal “Cash-for-Clunkers” incentive scheme launching in August. Under the government-backed program, consumers can receive a voucher for up to $4,500 for trading in a gas-guzzler for a more fuel-efficient model.
The July sale comes as GM enters a second day of bankruptcy hearings. The hearings will determine whether the auto maker can sell its best assets to a new company and liquidate underperforming ones.
GM President and CEO Fritz Henderson testified for five hours Tuesday, saying the government could walk away from financing its exit from Chapter 11 if the sale of the assets was not approved by July 10.