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Zero Percent Pays Dividends for GM

July 15, 2008

DETROIT — GM's recently concluded zero percent APR program provided a lift for both GM loyalty and GM conquests of owners of competitor vehicles, according to a recent Power Information Network (PIN) report.

The increases are much greater when the program results are compared to the first three weeks of June than when compared with the March-May time period, suggesting there may have been an artificial change in buying patterns in early June.

The loyalty of GM owners (their propensity to trade for another GM product) climbed more than ten percentage points during the zero percent APR program when compared to early June, but only about 5 points when measured against the March-May time period.

The rates at which GM converted Ford and Chrysler owners rose five percentage points or more when using early June as the benchmark, but substantially less when compared to earlier in the year. GM’s conquests of owners of Asian products followed a similar pattern, though the results in all three time periods are much smaller.

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