GM?s yearly incentive program will start this week

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In attempts to lower its left over 2009 inventory, General Motors Co. is initiating hefty incentive programs in its four remaining brands particularly Buick-GMC’s Holiday Event, Cadillac’s Season’s Best and Chevrolet’s Red Tag Events. Because of this, GM notably maintains the highest per-vehicle incentive spending in the entire industry spending an average of $4,000 per vehicle.

At GM’s press conference yesterday in Detroit, VP for Sales Susan Docherty announced that they wanted to keep their inventory between 425-450,000 by the first quarter of next year and she was confident that they would be able to reach that target. Docherty was slated to announce the company’s performance after they filed for bankruptcy a few months back at the said press conference.

GM has raised its vehicle supply on its dealer lots starting November 1 to accommodate the expected increase in demand because of the incentive programs. And while they have maintained their 19.5% US market share and increased retail sales from last year by 15%, they are not expecting the numbers to soar anytime in 2010. Docherty’s not worried though.

“It's nothing to write home about,” she said. “We're seeing some improvement and lift from the 2009 calendar year, but I don't think 2010 will be a stellar year. It's going to be a year for some stabilization.”

GM reportedly expects to sell 11-12 million units in the US next year.



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