DETROIT, Feb. 24 (UPI) -- U.S. car companies are having to offer car buyers more incentives this year as they struggle with tough competition in a weak market, The Detroit News reports.
"We have no intention of becoming a leader in incentives, and we don't have in mind some kind of big blowout program like we've had in the past," Troy Clarke, president of General Motors Corp.'s North American operations, said.
But he acknowledged that GM has no choice but to offer inducements to choose its vehicles.
Between 2004 and 2007, two of the companies cut incentives --from $3,872 per vehicle tp $3,018 at GM and from $3,217 to $3,089 at Ford. Chrysler incentives increased to $3,763 in 2007, up from $3,491 in 2004.
Jesse Toprak, chief auto analyst at Edmunds, said the companies will probably try to fine-tune incentives instead of offering them across the board. Alternatives might include regional incentive programs, allowing dealers to decide how the money can be used best to attract buyers and providing good deals on financing.