General Motors to announce longer warranties on vehicles

General Motors Corp is planning to offer longer warranties on its vehicles in an effort to boost consumer confidence, a person briefed on the plan told Reuters on Wednesday. GM said its Chairman and Chief Executive Rick Wagoner will announce a major consumer initiative on Wednesday afternoon. A news conference was scheduled for 1 pm (1700 GMT).
A GM spokesman declined comment. GM's longer warranties are part of its attempt to move away from costly cash sales incentives, the source said. GM has been working since January to distance itself from profit-eroding consumer rebates and discounts after relying heavily on such measures last year.