General Motors Corp. again escalated the U.S. auto industry's price war on Oct. 10 to counter an apparent sales slowdown, announcing it will offer zero down payment, zero payments for 90 days and zero percent financing on the sale of most new GM vehicles, according to a Reuters report.

"Zero is good, but three zeros is better," John Smith, GM's vice president of sales, service and parts, told Reuters following a GM dealers' meeting in Dearborn, Mich.

GM expanded its incentives following internal data showing industry sales plummeting in the first weeks of October, Smith said.

U.S. vehicle sales were running at an annual pace of about 15 million vehicles in the first part of the month, Smith said, which would make October one of the weakest sales months in years.

According to Reuters, the incentives could help drive up sales across the industry, perhaps to a seasonally adjusted annual rate of around 16 million, which would still make October one of the weakest months of the year.

The "zero, zero, zero" incentive program expires at the end of October, Smith said.

GM, which first introduced its zero percent loans following the Sept. 11 terrorist attacks on the United States last year, has used the aggressive incentives to help drive vehicle sales despite the struggling U.S. economy. But GM was one of only two major automakers to report a sales decline last month, due to its temporary withdrawal of interest-free incentives and low inventories of 2002 models.

In the current war of incentives, GM and Ford Motor Co. have often matched each other's incentive offers. Last month, Ford unveiled a three-month payment deferral plan on its 2002 models.

A Ford spokeswoman said the company would remain competitive, but declined to say whether Ford would revive its previous offer. DaimlerChrysler AG's Chrysler also wouldn't say whether it will match GM's new offers.

In addition to the payment plan, GM said it would also continue offers of zero percent loans with terms up to five years on most 2002 models, excluding its Hummer and Saab brands. For its new 2003 models, GM will offer zero percent for terms up to five years on most of its passenger cars, and up to three years for most of its SUVs, pickups, mid-size vans and Cadillac cars and trucks.