General Motors to offer high discounts to clear inventory

General Motors to offer high discounts to clear inventory

With the end of the year approaching, it becomes important for the automakers to get their current year inventories cleared so that they next year models can be shipped to the markets. As a result, consumers are going to be offered impressive discounts from the auto companies who are struggling to get their cars out of the showrooms onto the roads. And General Motors is one of these automakers.

The world’s largest automaker is now going to offer additional cash rebates on all 2005 vehicles sold on the U.S. market. These discounts are not going to be available on the Hummer H1 model. GM wants to get its year-end inventory cleared up. General Motors has said that the $1,000 bonus cash offers will run through November 13.

Other American companies like Ford Motor Co. and DaimlerChrysler AG’s Chrysler arm are also offering similar discounts to their customers. October was a disappointing month for the auto market as the rising fuel prices and declining consumer confidence led to fall in sales. GM and Ford both suffered massive falls in their sales figures.

GM representative Deborah Silverman said in a statement: “The reason for the bonus cash offer is a continuing sell-down of 2005 inventory.” The discounts on some models of GM automobiles are already touching a high of USD 6000!