DOW JONES NEWSWIRES
General Motors Corp. (GM) and Ford Motor Co. (F) will offer $50
gift cards to lure New York International Auto Show visitors to
test drive a vehicle at a dealership as the auto makers continue
offering creative incentives to combat slumping showroom
traffic.
Late last month, both GM and Ford outlined new incentive plans
that go beyond the cash rebates and financing deals they have
traditionally offered. Ford is offering 0% financing through June 1
and will cover payments for up to 12 months on any new Ford,
Lincoln or Mercury vehicle if customers lose their jobs. Meanwhile,
GM will offer payment protection for the first 24 months of
ownership. If a buyer loses his income, the company will make up to
nine months' worth of payments for up to $500 a month.
All the big car makers suffered sales declines of 36% or more in
March, though some said they've see signs the industry's downturn
might be near bottom and a recovery could be starting.
In a statement Wednesday, the auto show's organizers said they
hope offering customers $50 to travel to a dealership to actually
drive a vehicle might pay dividends.
"Programs like the $50 gift card offered by GM and Ford help
continue conversations between auto show visitors and new car
dealers," said Mark Schienberg, president of the Greater New York
Automobile Dealers Association.
The Ford gift card can be spent anywhere, while the GM card is
only good at restaurants.com.
The auto show runs at the Jacob K. Javits Convention Center in
Manhattan through Sunday. Tickets cost $14.
-By Lauren Pollock, Dow Jones Newswires; 201-938-5964;
lauren.pollock@dowjones.com