GM Raises Rebates to Increase Sales

A day after reporting a surprising 12% decline in sales for May, General Motors Corp. said it was increasing cash rebates on pickups and sport utility vehicles to match those from Ford Motor Co.

Trucks are key to profits for Detroit’s Big Three, and GM has credited truck sales for growing its earnings this year. But GM’s full-size pickup sales fell 23% in May, while sales of Ford’s F-Series pickups fell 1.3% and sales of Chrysler Group’s Dodge Ram pickups increased 19%.

GM said it was raising the rebates on mid-size SUVs by $750 to $1,750. Rebates on most four-door, full-size pickups were raised to $1,500 from $1,000, and rebates on other full-size pickups were raised from $2,000 to $2,500.

GM shares fell $1.80 to $59.45 on the NYSE.