DETROIT -- General Motors extended 0 percent financing offers on three of its popular mid-sized SUVs, to five-year terms from three years, to try to boost sales, a spokesman said on Tuesday.
GM began offering the extended interest-free loans on its Chevrolet TrailBlazer, GMC Envoy and Oldsmobile Bravada mid-sized SUVs on Saturday, said GM spokesman Jeff Roegner.
GM had previously offered a 1.9 percent financing rate on the SUVs for four-year loans, and 2.9 percent for five-year loans.
GM's sales of its SUVs slumped in January after strong results in December, and many analysts expect GM's sales to fall moderately in February. Automakers are due to report their February sales on March 3.
Ford Motor Co. said it was studying the GM incentives, which run through the end of the month, and would likely make an announcement later on Tuesday.
"We're not about to cede market share to GM or anyone else," said Ford spokesman Jim Cain.
Analysts have said Detroit's sales incentives appear to be losing their punch. Last year, GM successfully used incentives to boost both its market share and profit.
U.S. consumer confidence fell in February to its weakest level in 10 years, according to a report released on Tuesday by the Conference Board, a private business research group, due to tensions with Iraq, rising energy prices and the weak economy. Those factors have also weighed on new vehicle sales, analysts said.