GM's 'Employee Discount'

General Motors has extended its U.S.
program that gives all customers the
same steep discounts that it offers
employees until August 1. Earlier,
GM announced the unprecedented
offer on June 1. However, dealers had
been asking that the special incentive continue.

U.S. new car sales figures for June showed sharp sales gains for GM as a
result of the programme to clear out excess inventory. Number-2 U.S.
automaker Ford Motor Co. also responded by offering its U.S. workers
and retirees up to $1,000 to get their friends, family and neighbors to buy
vehicles with special employee discounts in a bid to boost sagging sales.
GM, which saw U.S. vehicle sales slip 5.5% in May, has led Detroit's profit
eroding price war since it launched interest-free loan deals to draw buyers
to showrooms after the Sept. 11, 2001, attacks on the United States.

However, both GM and Ford had seen their U.S. market share slip this
year amid an onslaught from Asian rivals especially Toyota with its Hybrid
and fuel-efficient fleet of models. The rising oil price has also contributed
to slump in sales of GM and Ford.