GM, Chrysler Extend Incentives, Boost Slipping Sales

General Motors posted sales of 308,817 vehicles in August. That’s a drop of 20 percent from August of last year - but 31 percent better than July.

In order to boost sales as much as possible during a time when total auto sales are down significantly - August sales were down 15 percent from August of last year - GM is extending its employee-discount campaign through September, writes MediaPost. The company is also adding 19 of its 2009 models to the list of vehicles eligible for the sale, because existing stock of 2008 vehicles is “rapidly disappearing,” according to Mark LaNeve, vp/GM North American sales, service and marketing.

The program appears to be working: GM moved 80,000 pickups last month, with some models seeing their strongest total sales month since last August. Some retail car sales, including Chevrolet, Pontiac and Cadillac, were up by double digits from last August.

La Neve says moderation in gas pricing has helped improve sales.

GM is limiting its marketing spend to $15 billion through next year. Part of its move to cut back on marketing and advertising included the decision to sit out the Academy Awards in February, 2009.

Chrysler is also extending a promotion that has seen some success. The Shop Til You Drive effort will be backed with print and television advertising in the hopes of clearing 2008 model Rams and other models. The company is hoping to turn leases - which the company is no longer offering - into purchases. “We have some 165,000 leases reaching maturity in the fourth quarter, so we are offering them an easy ramp onto retail deals after leases end,” says Steve Landry, evp of North American sales for Chrysler.

Chrysler sold 110,235 vehicles in August, down 34 percent from last year. But some of the drop comes from the decision to end leasing. Ford sales were down 15.5 percent, while Toyota sales were down 9.4 percent from last August.