General Motors sold as many as 100,000 more cars than it might have, during the first quarter, by unexpectedly increasing its incentives, CEO Dan Akerson said at an industry conference marking the start of the New York Auto Show.
The maker surprised analysts and competitors alike when it boosted rebates and other givebacks by about $400 a vehicle during the early days of the new year, a time when rising demand led some makers to curb their incentives.
“I don’t want to be a predictable competitor,” explained Akerson. “I don’t want the other guy to know exactly what I’m doing.”
Industry observers have questioned the move, which cuts into the maker’s cash flow and potential profitability. But the added demand more than justifies the cost, the GM CEO asserted.