GM told dealers yesterday that it will stay in the leasing business through August – but no commitment is being made beyond the summer. GM’s sales chief Mark LaNeve told dealers yesterday that GM will continue to offer a ‘balanced menu’ of cash incentives, annual-percentage rates and leasing programs on most of the automakers 2008 and 2009 models.
“Obviously, current financial pressures will continue to affect our perspective on leasing,” LaNeve wrote in the letter. LaNeve said that GM obviously can’t make guarantees.
Spokesman Pete Ternes said that GM is deciding whether the adjustments will be similar to the changes in finance options – or something more significant.
“We know that the cost of incentivizing is getting higher, so that may come into play,” Ternes said.
Ford announced yesterday that it will increase lease prices on its pickups and SUVs. Chrysler has announced that it will drop the leasing business starting August 1st.
Source: Automotive News (Subscription Required)