GM's, Ford's fuel incentives may not be enough to lure buyers

The two fuel-discount programs offered by Ford and GM to new car buyers have attracted a lot of attention, but the actual goal of the programs (to sell more new cars) may not be actually fulfilled. In an article in the Desert Sun from Palm Springs, CA last week, car dealers were interviewed about the state of the programs, which began around the end of May. The promotions promise to cap the price of each gallon of gas the car buyer burns in the next year at $1.99 (GM) or give buyers $1,000 worth of free gas or $1,000 off the price of the car (Ford). More people are coming into the showrooms, dealers say, but it's too early to tell if more cars will eventually be sold. So far, most Ford purchasers are just taking the $1,000 discount instead of the free gas, one dealer told the paper. Last year's major promotion – employee pricing for everyone – didn't raise overall sales of U.S. cars.

[Source: The Desert Sun]