• Feb 5th 2011 at 12:02PM
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According to Automotive News, some analysts are accusing General Motors of sliding back into bad habits by boosting sales with heavy incentives. The report says that GM's 22-percent sales jump in January was largely fueled by laying piles of cash on the hood. On average, GM handed out $3,762 per vehicle last month – the highest incentive figure of any of the six largest automakers. That number represents a 29-percent increase over the same month last year, and Edmunds.com analysts are concerned that the automaker has begun pushing too many models on dealers with plans to move them with incentives.
GM, meanwhile, says that while the company did institute a "modest" increase in incentives last month, it doesn't plan on falling back into the rut of driving production with the cash. The company saw Chevrolet sales jump 19 percent, while Buick and GMC enjoyed a 32-percent increase, all of which were driven largely by more free-flowing consumer credit.

[Source: Automotive News – sub. req.]

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