Will General Motors (GM) Pay for High Promotion Costs?

Even though General Motors (NYSE:GM) grabbed the crown for boosting sales by 46 percent in February, it definitely came at a cost, as the company increased incentives by 12 percent in order to gain those sales, coming in at $3,732 for each vehicle, suggesting margins and earnings will take a hit in the quarter.

On the other hand, Ford Motor (NYSE:F) lowered incentive spending by 9.7 percent over last year in February to $2,542, according to Autodata..

Chrysler reduced incentive spending to $3,052 per vehicle, a decline of 14 percent.

The largest automaker in the world, Toyota (NYSE:TM), raised spending by $203, to an approximate $2,003 per vehicle.