Steep Discounting Perks Up Sales at Big 3 Automakers

Summary

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For the Big Three automakers, it's out with the old and in with the new, which has been a bonus for car buyers but isn't guaranteed to be as good a deal for investors.

This summer's aggressive discount pricing by the Big Three U.S. automakers has jump-started a dismal 2005, and some analysts say it may position the industry for a comeback next year, though that belief isn't universal.

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Extract

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Steep Discounting Perks Up Sales at Big 3 Automakers

Inventory is being reduced in a rush started by General Motors Corp.'s program to give all buyers its employee discount, which produced a 41 percent sales gain in June for its best month in 19 years.

Other automakers have followed suit. That's good for consumers, but it may not be in the long term for sharehold...

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