In an effort to drive up sales following nearly two months of awful weather, General Motors Co. (NYSE: GM) and Ford Motor Co. (NYSE: F) have extended their discounts on new vehicles through next month in an effort to attract traffic and buyers.
GM offered discounts totaling nearly $8,000 on its 2014 Silverado pickup for the Presidents Day holiday, and it will be offering discounts of $9,000 or more, according to a report at Reuters. Ford is offering discounts totaling $8,000 or more on its best-selling F-150 pickups.
Earlier this week, Kelley Blue Book (KBB) estimated that GM sales would drop 4.2% year-over year in February and that Ford sales would be down 7.8%. Toyota Motor Corp. (NYSE: TM) is on track to lose 2.6% in sales, while Volkswagen sales are forecast to drop a whopping 12.6%. Honda Motor Corp. Ltd. (NYSE: HMC) is forecast to post a gain of 1.9%, Chrysler Group is expected to post a gain of 6.5%,and Nissan is looking for a boost of 8.4% year-over-year.
Total sales volume from all makers is expected to slip 0.2% from 1.192 million vehicles sold in February 2013 to 1.190 million. The seasonally adjusted annual rate for 2014 is expected to remain flat in February at 15.4 million vehicles.
In addition to the manufacturer’s discounts, dealers are also expected to pile on the incentives for buyers. Reuters notes a dealership in Oklahoma that is offering a Chevy Silverado at $9,260 below the sticker price. An Arizona dealer is offering $5,860 off a Chevy Malibu and $4,500 off on the purchase of a Sonic hatchback.
Ford dealers are adding to the manufacturer’s rebates as well. The $4,000 rebate Ford is offering on its heavy-duty F-150 is less than half the total discount of $8,360 at a Florida dealership.