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DETROIT -- "General Motors Corp. (GM, news) is for the first time offering discounted financing on its Hummer H2, the icon of the market for supersize sport-utility vehicles, amid slumping demand for large SUVs and rising gasoline prices, according to Friday's Wall Street Journal.
After a 21% sales decline in April, GM now will offer qualified Hummer customers 2.9% rates on five-year loans. GM's move comes amid a flurry of similar actions by Detroit rivals Ford Motor Co. and DaimlerChrysler AG's Chrysler unit to ratchet up discounts on SUVs in the wake of sluggish April sales. With unleaded-gasoline prices at a national average of $1.84 a gallon, and more than $2 a gallon on the West Coast and in some other places, the actions are a sign that auto makers are determined to sustain demand for big, gas-guzzling SUVs.
"We are expecting larger incentives from manufacturers to compete against the rising cost of fuel," said Allen Levenson, vice president of sales and marketing at Asbury Automotive Group, a retail chain of 100 dealerships. "If the fuel prices continue to rise, this will definitely affect the larger SUV market, and people will go to the smaller vehicles."
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To which there's really only one possible response - well, DUHHHHHHHHHHHH!!!
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