General Motors (NYSE:GM) is increasing its end-of-year incentives for buyers of the automaker’s full-sized trucks.
Buyer incentives for GM Silverados are reaching as high as $5,000 per vehicle, Bloomberg reports. That’s up from $4,000 in November and even more than last December, when incentives reached $4,500.
Even with higher incentives, however, GM is offering less than rivals Chrysler, Ford (NYSE:F) and Nissan (PINK:NSANY). Incentives for Ford trucks are up to $6,500, buyers of Nissan’s Titan can see savings of $7,450, and Chrysler is offering up to $8,200 off the Dodge Ram.
The push to move trucks by the end of the year stems from GM’s oversupply. Truck inventory has swelled this month, led by an 8.3% drop in sales of Silverados and Sierras in November. GM now says it expects to end the year with more inventory than it anticipated. Inventory for the firm’s competitors are at anticipated levels, with only Chrysler being marginally higher.
For the moment, GM says it will keep incentives at current levels. The firm has no wish to offer too much and undercut its profitability in the new year. Rather than do that, the firm says it will cut production to reduce inventory.