General Motors

Give General Motors credit. It's trying, it really is. But with mediocre auto sales, the company is bringing back zero percent financing in order to goose springtime sales. The 20 day promotion with 0% financing for three years on certain vehicles and lower rates on other 6 year deals. GM is also throwing in a $1,000 bucks. As incentive offers go, it's not a huge one. But it's an important and telling move.

GM has shown pretty good discipline with it's pricing the last couple of months. When the company said last year that it was pulling back on incentives in an effort to boost transaction prices (the price buyers actually pay) and profit margins. But so far, sales in 2007 have been lackluster at best. In fact, when I talked with GM Chairman and CEO Rick Wagoner yesterday he called January and February sales "so-so" and the first half of March "mediocre". It's left GM with little choice but to do something to spark buyers. So it's offering zero percent and a sweeter deal on most of it's vehicles (Cadillac, Hummer and Saab are excluded).