General Motors Corp. on Sept. 19 announced it will add low interest-rate finance incentives on all U.S. models to try to stimulate sales in the wake of plunging consumer confidence following last week's terrorist attacks.

GM, the world's largest automaker, said the incentive program, called "Keep America Rolling," includes finance rates as low as zero percent interest on some new car and truck sales.

"This program is in part in response to the administration's request to American business to support and aid nationwide efforts focused on economic recovery," said Ron Zarrella, head of GM's North American operations.

The announcement came shortly after leaders of the auto industry, labor unions, and government held what they called an unprecedented meeting at a GM assembly plant in Detroit to discuss ways of bolstering the embattled U.S. economy.

Two top Bush administration officials made an unscheduled visit to Detroit to urge the auto industry to do what it can to help stimulate

an economy on the brink of recession. Secretary of Commerce Donald L. Evans and Secretary of Labor Elaine L. Chao met with top executives of the Big Three automakers - General Motors Corp., Ford Motor Co. and the Chrysler Group - which had already lost market share this year

to foreign manufacturers before the terrorist attacks last week on New York and Washington.

After a brief tour of General Motors Corp.'s Detroit Hamtramck assembly plant, members of the group spoke about the importance of labor, management and government working together in the wake of the terrorist attacks. UAW President Stephen Yokich stood behind a lectern with a sign that read "America United" and summed up the speakers' message: "This isn't just about the auto industry ... It's about the tragedy that we had in our country," and now "pulling together as management and labor, on behalf of all America."

GM CEO Richard Wagoner praised the industry's rapid response to get plants running so soon after the nation's economy was paralyzed after

the terrorist attacks in New York and Washington. "Our challenge is to make sure we can stimulate the demand side. We're willing to do our part," he said.

Since the attacks, the automakers have reported stagnant sales, as well as some production troubles and parts shortages because of

transportation problems. Now their quandary is how best to cope with new sales declines: by increasing incentives to make vehicles cheaper or by cutting production.

Ford announced last week that it would cut production by 110,000 to 120,000 vehicles. The

company had problems as parts made in Canada and Europe were hindered from reaching plants in the United States because of border closings and air transportation curtailments.

But the Bush administration would prefer that

automakers, instead of making fewer vehicles, address weakening demand by making vehicles cheaper to buy, even if such a step cuts into profits.

Beginning on Sept. 20 and running until the end of October, GM will offer zero-percent financing on 36-, 48-, and 60-month loans on 2001 model year cars. Zero-percent financing is also offered on 36-month loans for 2002 cars and trucks and on a 36-month loan for 2001 trucks.

Rates are higher for other loan terms for cars and trucks.

Saab Cars USA is joining in with parent company General Motors' interest-free automotive finance program. Saab’s interest-free automotive finance program will run until the end of October. "Keep America Rolling" financing can be applied to all 2001 and 2002 Saab models.

The U.S. Federal Reserve's cut in interest rates to 3.0 percent from 3.5 percent on Sept. 17 helped GM and the auto industry offer lower finance rates, according to analysts.

"We know this is a difficult time to talk about an incentive program, but GM has a responsibility to help stimulate the economy by encouraging Americans to purchase vehicles, to support our dealers and suppliers, and to keep our plants operating and our employees working," Zarrella said.

Sales of new cars and trucks plummeted in the days after the Sept. 11 terrorist attacks in New York and Washington, and the increased likelihood of a recession also will likely negatively impact auto sales for the remainder of the year, according to analysts.

Analysts have said that falling consumer confidence could cause auto sales to fall an extra 100,000 to 500,000 units this year.