GM Starts New Price War

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General Motors has announced a new incentives program under which dealers will cut prices on a wide range of its 2005 and 2006-model vehicles.

The incentives run through January 3 and lower prices by as much as $4400 on some models.

A GM news release this morning says the "Red Tag Event" covers most models of the Buick, Chevrolet, GMC and Pontiac nameplates.

Other incentives are in effect at Cadillac, Saturn, Saab and Hummer.

GM earlier announced that it lost $1.6 billion in the third quarter, compared with profit of $315 million a year ago.

The company's North American division continued to suffer from high health care costs and falling sales of sport utility vehicles.