General Motors Corporation has said it would subsidise gasoline purchases in Florida and California to boost sales in those key markets
GM said it would cap the price of gas at $1.99 a gallon for new buyers of some of its 2006 and 2007 full-size sport utilities and mid-size cars in those states.
The gasoline credit would be based on a consumer's estimated monthly fuel usage.
Consumers would be credited for the difference between the average price per gallon of premium fuel and the $1.99 price, adjusted for the miles they drive,.
The credit would be applied monthly to a pre-paid credit card and would be valid until the end of 2007, with no limits on mileage.
For example, GM said a California resident who buys a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would see an estimated $103.75 monthly credit. A Floridian who buys a 2006 Buick LaCrosse and drives the same distance would get a monthly credit of about $60, GM said.
The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars.