GM considering new incentives like, but not exactly like, Hyundai Assurance program

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General Motors' sales for the month of February dropped by a gut-wrenching 53% versus February 2008, giving the General plenty of incentive to kick up, well, incentives. GM knows it has to do something more than the typical cash on the hood, 0% financing marketing initiatives, and it has looked at the Hyundai Assurance program for inspiration.

GM executive Mark LeNeve told Automotive News his company recognizes that the Hyundai program may be addressing sagging consumer confidence, but he doesn't like the fact that losing your job means you also lose your car. LeNeve also stated that he isn't sure the Hyundai Assurance program is the main reason that the Korean automaker's sales were up 14% for January, stating that a portion of the increase could be the result of deep discounts on 2008 models.

Then again, Hyundai had the third lowest decline in February of any major automaker, showing that its improved product lineup is likely being helped by clever incentives. For now, GM isn't divulging much in the way of details about its new incentive plans, but for the short term plans on extending its Presidents Day sale into March. Times may be tough right now, but it looks as if more automakers than just Hyundai are preparing creative incentive programs to move their metal.



What is the Hyundai program?

Hyundai's Assurance program, launched by the automaker in early January to give wary customers peace of mind if they lose their jobs during the first year of Hyundai ownership, appears to be working. According to the Korean automaker, the program is attracting shoppers. "We think it's responsible for a 10 to 15 percent incremental increase in interest," said John Krafcik, acting CEO of Hyundai Motor America.

January sales numbers seem to support the automaker's claim. While nearly every other car manufacturer reported double-digit sales declines last month, Hyundai sales were up 14.3% compared to the same period last year. Krafcik credits the sales increase to the publicity surrounding the Genesis sedan being named the North American Car of the Year, and its unique Assurance program. Only two customers have returned cars under the program, and the automaker is committed to run it until the end of 2009... plenty of time to be applied towards a new Genesis Coupe which is scheduled to roll into showrooms later this month.