DETROIT -- General Motors Co. will help cash-strapped dealers waiting for cash-for-clunker rebates by advancing them a 30-day interest-free loan in the amount of rebates that are being processed.
GM said it is providing the money so dealerships will have the liquidity to run their businesses and continue to deliver vehicles to GM customers.
"Our sales performance in the past two months has exceeded our internal forecast by over 60,000 vehicles, largely driven by the CARS stimulus program," Mark LaNeve, GM vice president of U.S. sales, said in a statement. The federal program, formally known as the Car Allowance Rebate System, or CARS, will end Monday night, the Department of Transportation said today.
"We want to do all we can to provide customers with timely new-vehicle deliveries and dealers the liquidity they need to run their businesses," LaNeve said.
The Chrysler Group also said this afternoon it would advance its dealers money for 30 days for cash-for-clunkers claims they had submitted. No further information about the loans was available. "We're still working out of the details," said spokeswoman Kathy Graham.
GM will offer its loan for any clunker deal deemed by the dealership to qualify, whether or not the government has given formal approval. The dealer must repay the loan within 30 days or GM will take the money owed back from the dealer's open account with the automaker, said spokesman John McDonald.