GM to cut prices to lure back US buyers
General Motors is preparing a fresh barrage of discounts and other promotions to coax Americans into buying more cars after an upcoming US government decision on further financial aid to the Detroit motor industry.
The incentives will be designed to counter a slump in sales and GM’s market share, amid signs on both sides of the Atlantic that its financial woes are beginning to drive away customers.
GM and Chrysler have so far received $17.4bn in emergency loans from the government and are seeking billions more. However, they need to prove their viability to a government task force.
Steven Rattner, a former private equity investor who is a key member of the task force, told the Detroit Free Press yesterday that the group was committed to meeting the March 31 deadline.
This article was originally posted on FT.com