GM, Ford Offer 2nd Cut-Rate Financing Plan

General Motors Corp. and Ford Motor Co. kicked off their second major sales incentive campaign of the year today, offering 7.9% financing on several car and truck models, the auto makers announced.

Ford’s announcement came shortly after GM, the industry pricing leader, said it was offering the cut-rate financing. Both auto makers said the 7.9% rates would be offered on deliveries taken from existing inventories through Feb. 22.

GM, the nation’s largest auto maker, is faced with a mounting backlog of unsold cars. Most of the models included in the incentive program have four-cylinder engines.

Among the cars covered by the 7.9% financing is the slow-selling Chevrolet Nova, built jointly in California by GM and Toyota Motor Corp. of Japan, GM said. Other vehicles include some models of the Chevrolet Cavalier and Celebrity; Pontiac’s Fiero, Sunbird, 6000, Grand Prix and Bonneville; Oldsmobile Cutlass Ciera and Cutlass Supreme; Buick Somerset, Skylark and Century; and Cadillac DeVille. Trucks in the program include the Chevrolet El Camino and GMC Caballero.

Ford models eligible for the low-interest financing include 1985 and 1986 Tempo and Topaz; 1985 and 1986 Thunderbird and Cougar models with 3.8-liter engines; 1985 Merkur XR4Ti; 1985 F-150 4X2 regular cab and “super-cab” models; and 1985 and 1986 Ranger 4X2 regular cab and supercab models, except for the Ranger “S” model.

GM sparked a cut-rate loan and rebate war in August and September, causing auto sales to double. The auto maker’s share of the market fell, however. GM dealers have an 86-day backlog of unsold cars, compared with the desired level of 60 days, according to the trade journal Automotive News.