George S. May Business Blog

GM and Ford will make your payments

In an attempt to mend the spending worries among consumers, both General Motors Corp. and Ford Motor Corp. have announced a payment protection plan for customers who lose their job and can’t make the payments. Vehicle sales have been severely damaged by the recession and the carmakers hope that their latest offer, conjoined with budget cuts, layoffs, and other offers like zero percent financing, will help to pull them out of a 27 year low. According to the Associated Press, “Ford said Tuesday it will cover payments of up to $700 each month for up to a year on any new Ford, Lincoln or Mercury vehicle if consumers lose their jobs…Hours later, GM said it will make a similar offer. GM’s new CEO, Fritz Henderson, said the company will make up to nine car payments of $500 each for customers who have lost their jobs through no fault of their own.”

Obviously, in order to receive the payments one must:

a) Qualify through GM or Ford for their incentive plan

b) Qualify through the state for unemployment

Some time ago, Hyundai Motor Co. let a similar plan loose, however, in the case of Hyundai drivers who lost their job, they would be allowed to simply return their vehicle.

The offer is set to begin April 1 and run until April 30, for GM. Ford will extend its offer until June 1.

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