DETROIT — General Motors launched a new round of incentives on Wednesday designed to bring fearful Toyota owners "back to the GM family." The incentives are a direct response to Toyota's announcement on Tuesday that it is suspending sales and halting production of eight models due to problems with faulty gas pedals that could stick and cause unintended acceleration.
In a phone conversation late Wednesday with Inside Line, GM spokesman Tom Henderson said all the details of the program — such as whether to include the Chevrolet Corvette in the incentives — were still being worked out. But the program starts now and offers zero-percent financing for 60 months on most Buick, Cadillac, Chevrolet and GMC models. Cash buyers get $1,000 toward a down payment and lease customers can get a waiver of three payments up to $1,000, Henderson said. To qualify for the incentives, customers must show proof that they own or lease a Toyota.
The program runs until the end of February.
Henderson said the new program is in response to "feedback from our dealers.... We're just reacting to what consumers are telling our dealers," he said. "(The program) is aimed at bringing people back to the GM family."
The campaign is directed at owners of 2.3 million Toyota vehicles that are subject to a recall because accelerator pedals may stick.
Sources say that in the next 24 hours, Toyota is expected to announce significant incentives on the remaining vehicles it has available to sell, including some models on the recall list that don't have the "bad" parts due to production location. Those incentives are expected to be combination of cash rebates and low-interest financing.
In the meantime, the National Automobile Dealers Association said late Wednesday that it is "working with Toyota to identify a plan to help get dealers through this."
"In the meantime, we are encouraging Toyota dealers to check to see if their business interruption insurance might help them weather this crisis," the NADA said in a statement.
Inside Line says: GM aggressively pursues disgruntled Toyota customers. It won't be a surprise to see other automakers jump on this bandwagon. — Anita Lienert, Correspondent
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tbone85 says:
12:28 PM, 02/03/2010
"Toyota the one the gave all those people jobs in the US after "American BIG THREE" fired all of them and shut down all those plants. Remember not to bite the hand the feeds you and your family....."
Uhmm, that's certainly an intersting and selective re-write of history. Toyota hired virtually no one who was laid off from the Big Three because they weren't doing much manufacturing in the same state, let alone the same locality.
As far as not biting the hand that's feeding you and your family, Toyota is eating a whole lot more from this meal than American consumers. If Toyota stopped manufacturing and selling cars here, there will certainly be companies to replace them. It's no charity. If it didn't make business and political sense for them to manuracture here, they wouldn't do it.
All this mock shock is amusing. Toyota and Honda played the same FUD cars and sold their quality when the domestics faltered. It's irrational to expect the domestic companies not to try and take advantage of an opportunity. If they weren't trying to push themselves forward, then their leadership should be removed. It's called business.
gixxer1397 says:
03:52 PM, 01/28/2010
I just love how quick everyone is to turn on Toyota with one major recall in what the last ten or more years. Hell look at the recall list on most GM cars out there. I have Pontiac Grand Prix GXP that has less than 37000 miles and have it in the shop twice in the last 3 months for major steering issues that GM covered even though I was out of warranty because they were "known service issues" but never did I receive a recall notice or a recall even out there. One was for the intermedite steering shaft that is "known" to break and cause steering loss and the other was for another "known" problem with the return line on the power steering pump to blow out without notice again causing complete loss of steering. Anyone ever tried to turn a modern front wheel drive car with no power steering. I just bought my wife a 2010 Camry SE and she loves the car. Her three prior car were all new leased GM's and they all were a POS of the first yr. I had a 2005 Tundra before this GXP and regret ever buying this POS. I will continue to own Toyota and will most likely trade the GXP in for a Tundra again real soon. Ford is now on the $1000 trade-in band wagon. What a joke. NHTSA shuts down Toyota and now Government Motors offers rebate to spark sales.... What a joke..... Toyota the one the gave all those people jobs in the US after "American BIG THREE" fired all of them and shut down all those plants. Remember not to bite the hand the feeds you and your family.....
soylentgreen says:
10:05 AM, 01/28/2010
Dang! This whole fiasco reminds me when a lion (Toyota) leaves an antelope carcass (the buyers) and all the vultures (other car makes) feast on the sloppy seconds.
aston_dbs says:
10:05 AM, 01/28/2010
LOL... This surely shows even more how pathetic GM is...
The only way for them to go up is when somebody else 'messed up'...
Otherwise, no chance in hell...
Just like that "May The Best Car Win' campaign... Isn't that already obvious? Duh?!
Just pathetic...
As long as Toyota, Honda, Nissan, heck, even Hyundai are still around, I will NEVER buy a GM product.
Heck, if all of the above are bankrupt or dissapear, I rather ride my bicycle...
dg0472 says:
09:24 AM, 01/28/2010
I think this just looks desperate. And no you can't trade a Matrix in on a Vibe. Vibe is a Pontiac and isn't included.
iskch says:
07:40 AM, 01/28/2010
Oopps. I mean 60 months.
iskch says:
07:38 AM, 01/28/2010
Humm.... lets see.... 0 - financing for 60 days. Got it! The bailout money will finance your purchase for a new GM car. Remember you must qualify thru GMAC financing (bail it again by Uncle Sam with Tax payer money) How nice and wonderful is this! Lets print more!
Shady way to sell a car.
guy1974 says:
06:50 AM, 01/28/2010
HondaAcura - GM don`t expect to get all of Toyots customers but it is a good move.
Most people bought Toyota for reliability and nothing more. Toyota offer nothing more (design, driving fun etc are low compared to other companies). Therefore if reliability has been hit then these people may look elsewhere.
Yes GM has had recalls but so what. They were criticised for that, therefore for consistency shouldn`t those same people now criticise Toyota.
First it was "floormats" and now some unknown mechanical issue which has effected America, Europe and China.
hondacura4 says:
05:20 AM, 01/28/2010
I think it's going to take more than a recall to lure back all those former GM customers. Not that GM products are inferior to Toyota's. If Toyota continued to have numerous recalls and their quality standards hit the bottom then I could see some consumers going back however, with so many other brands to choose from (Honda, Nissan, Ford, Hyundai ETC ETC) why would GM be the first on the list as just about every competing manufacturer has at least 1 good solid product in its portfolio.
radioactive45 says:
04:31 AM, 01/28/2010
I noticed that when a GM blog comes up it generally takes, within three posts for someone to re-hatch that old Government Motors joke.