The challenge for General Motors Corp., Ford Motor Co. and DaimlerChrysler AG, especially after the terrorist attacks on the United States on Sept. 11, was how to lure reluctant consumers back into the showroom in a slowing economy.

The immediate solution was zero percent interest loans, initiated by GM and matched by the others. Sales surged to near record levels, but profits plummeted or went away entirely.

Not only did that strategy pump up sky-high industry marketing costs at a time when GM was the only U.S. automaker expected to make a profit in 2001, but also it set the stage for more of the same in 2002, including a continuing price or incentives war, according to Reuters.

Even GM, the world's largest automaker, may lose money if annual U.S. light vehicle sales dip below the low end of sales expectations of about 15 million units, according to industry analysts.