GM May Offer Huge Incentives Soon

GM is now in a tough position - they don't want to go back to the days when every car maker was offering huge incentives to keep sales strong, but now they see that sales are suffering and may decide to kick off another incentives war in order to increase market share.

GM's U.S. market share stood at 19 percent in the first 15 days of March, down from 21.5 percent for all of February when it was offering $1,000 GM loyalty cash and lease pull-ahead deals.

One Chevrolet dealer said that without loyalty cash and lease pull-forwards, his sales have dropped 25 to 35 percent from February.

Another Chevrolet dealer said losing the loyalty cash and lease deals hurt sales momentum.

It will be interesting to see what GM decides to do with incentives next month - we could possibly see a big increase in deals over the coming months so stay tuned.