updated 8/2/2005 12:50:29 PM ET 2005-08-02T16:50:29

General Motors Corp. will extend its discount plan that gives customers a chance to buy cars at the prices its employees pay through Sept. 6, a dealer confirmed Tuesday. The move reverses an earlier GM decision to end its program and matches moves by smaller rivals Ford Motor Co. and DaimlerChrysler AG to extend similar discounts that have fueled a powerful sales surge.

John Rogin, who owns dealerships in Michigan and Ohio, said GM will continue to offer employee prices on 2005 models. Rogin said he has only a two weeks’ supply of 2005 vehicles left after two months of discounts. Most large dealers have a 30-day supply, he said.

“They can’t slow the momentum, and what are you going to put on the ’05s to get rid of them?” Rogin said.

A GM spokeswoman wouldn’t immediately confirm that the deal was being extended.

GM was the first of the Big Three to offer employee prices for all consumers in June. GM’s sales shot up 41 percent that month, and rose again in July. GM and other automakers were scheduled to release July sales figures later Tuesday.

Ford and DaimlerChrysler followed with their own employee-pricing plans in July. All of the plans were scheduled to end Aug. 1, but Ford announced Monday that its plan would continue through Sept. 6 . Ford also is offering employee prices on some 2006 models, including the Lincoln Navigator.

DaimlerChrysler said Tuesday that it’s extending employee pricing on most 2005 Chrysler vehicles, along with up to $3,500 in additional incentives on some vehicles. Chrysler didn’t give a deadline for that promotion to end, saying it was in effect as the company continues to sell down its remaining 2005 vehicles.

GM said last week that it planned to end its discount Aug. 1. On Monday, the company announced a new pricing strategy intended to wean consumers from incentives, saying it will lower prices on 30 of its 76 vehicles in the 2006 model year.

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