TROY, Mich., June 6 (UPI) -- General Motors, Chrysler and Ford are offering near record new car and truck rebates.
The rebates by the Big Three are averaging a whopping $3,655 a model, the Detroit News reported Friday.
Industry-wide, incentives on new cars and trucks have reached a staggering $2,724 -- up sharply from $1,681 a year ago. This undercuts profits as automakers scramble to boost sales and trim inventories in a soft economy.
In a development seen as a further threat to the profit outlook for Detroit automakers, the rebates by GM, Ford and Chrysler are more than triple that of Asian automakers and double that of European rivals, the Detroit News reports.
Asian automakers are offering discounts that average $1,197 and European brands are spending an average $1,847 on new model discounts.
Though some question their effectiveness, the generous cash-back deals and zero- or low-percent loans show no signs of slowing. Ford on Thursday followed GM and DaimlerChrysler AG's Chrysler Group in extending and expanding new car and truck discounts.
