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REPORT: Chrysler piles on even more incentives ahead of the holidays
In an effort to spur lagging sales, Chrysler has reportedly cranked up incentive spending on nearly all of its models by $1,000 to $1,500 while also offering 0% financing on many of its models. Chrysler is also said to be offering lease incentives of $500 to $1,000 on minivan leases and financing deals on leftover 2008 and 2009 Dodge Vipers.
The move towards additional rebates comes as incentive spending has been down for crosstown rivals General Motors and Ford. And Chrysler was already spending more on incentives than the industry at large – Edmunds says the typical Chrysler, Dodge or Jeep sold had $3,219 on the hood versus an industry average of $2,486. Chrysler is in a tougher position than its Detroit contemporaries, because the Auburn Hills, MI-based automaker has seen its sales slide by 39% on the year – more than any other major player in the U.S. market. One thing Chrysler does have going for it is that dealer inventory is largely in check and Automotive News is reporting that 88% of its vehicles are 2010 models.
Chrysler's latest round of incentives is good now through January 4, 2010.
[Source: Automotive News - subs req'd | Image: Mark Ralston/AFP/Getty]
Reader Comments (Page 1 of 2)
Potosi Joel 6:01PM (11/23/2009)
They should give buyers used Fords, that'd bring 'em in.
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Rob 6:07PM (11/23/2009)
$1000 off a Viper? That will buy a set of rear tires and enough gas to destroy them!
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Randy 6:16PM (11/23/2009)
I don't even think a half off sale would work! It's the company, not the cars! I feel no certainty about them being here in 3 years!
Ford - Yes
GM - Pretty Sure
Chrysler? ________ TBA
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Sea Urchin 6:32PM (11/23/2009)
I disagree, i think its the cars. Chrysler has old, stale cars, interiors are horrible, MPG is poor and frankly the competition offers much better cars. Aside from Wrangler Chrysler has almost nothing to offer.
John H. 7:06PM (11/23/2009)
I rank Ford and GM as likely to be here 5 to 10 years from now.
Chrysler will be lucky to eke out another couple years. No new product, shrinking dealers to sell them, less revenue when they do sell, high warranty costs after sale - it's a death spiral.
Judy Zik 7:58PM (11/23/2009)
I agree with your assessment of their future. Unfortunately I don't think the average car buyer has any clue. People have little memory or attention span for auto news unless they are enthusiasts. I doubt the average buyer is that aware of Chrysler's continued problems. When they go car shopping they quickly become aware of how horrible the cars are though. Which is why it is going to be one big fire sale from now until they either go under or get the new Fiatyslers on the lot.
What I am finding strange for a company that is supposedly back in business is the absolute lack of inventory. Despite all the closures the stores that are left seem to be starving for inventory. I don't know how the dealers that are left are going to hang on at this rate. If GMAC doesn't wipe them out Chrysler's lack of product will.
Randy 8:45PM (11/23/2009)
@Sea Urchin
The context in which I was commenting was based people's trust that the company will be around not the quality of the cars. Even if they had very high quality cars, there is a cloak of mystery around the company that keeps it from being accepted as a solid player in the industry. IMO
Ram it! 6:48PM (11/23/2009)
I can't wait for the new Fiats!
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Rick C. 7:09PM (11/23/2009)
This is a clearance sale to get rid of old product. Where's my Abarth 500?
jrhmobile 6:52PM (11/23/2009)
The downside of putting all that money on the hood of new cars is that it peels value right right out of the car as it rolls out the door.
Right now a local Chevy dealer has a top of the line 2006 Chrysler 300C SRT-8 with 50K miles and all the options for $19,900. If you bargained with 'em, you could probably peel off a couple of grand more to get it off the lot. Considering that car sold for $46K-plus new, that's a pretty rough beating.
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John H. 7:04PM (11/23/2009)
No surprise that the resale value is horrible due to poor build quality and imminent Chapter 7 of the parent.
Lar7789789 9:03PM (11/23/2009)
Yea, I hear you man, my next door neighbor bought a slightly used 2008 Charger SRT-8 for $33,000 ($3,000 gas guzzler tax included )
Now the car originally stickered for $46,569, and the dealership was asking $36,000, but my neighbor negotiatied and got it down to $33,000. Car was a demo, had about 5k miles.
If I had the money, I would see if I could get a nice sweet deal on a leftover Viper.
But I am a Ford man, so I am waiting for some nice incentives on the Mustang...
DarwinianReject 6:58PM (11/23/2009)
Great! I still wouldn't buy one!
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Dakotart 7:04PM (11/23/2009)
They just need to have cash flow until the updated and new models begin arriving over the summer and into the fall of 2010.....they will be fine.
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John H. 7:09PM (11/23/2009)
Except they won't be new.
They'll be "updated" or "refreshed" old models. And with the age of the platforms, facelifts aren't going to save things.
A facelifted Sebring from a company facing bankruptcy just won't cut it against a new GM car, much less a new Ford with a solid parent company.
Dakotart 7:37PM (11/23/2009)
Grand Cherokee, Charger, 300 will be the new ones......and those 3 are their biggest sellers other than the Ram.
Bolide Italiano 8:12PM (11/23/2009)
They are getting rid of the old junk to make room for the new cars coming (300, Grand Cherokee and Charger), and the refurbished ones (both the sedan of Chrysler and Dodge).
This will be enough to keep them afloat for a couple of years until the new Fiat arrive (they won't be designed by Fiat but by Americans, although the Italian CEO will have to give the thumbs up, so expect good looking cars from 2012)
Guys, it takes years to design a new car and put it into productuion, don't expect miracles. Fiat took over in May after all, at least they are not sleeping and they try everything they can before ther brand new models hit the markets in 2012.
By 2012 the Chrysler group will have 14 brand new models and 6 redesigned and updated, it is quite a lot of cars to be built in just 2 years don't you think?
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daleam 10:35PM (11/23/2009)
Thank you for having something positive to say about Chrysler. With all these negative Nancys around I was beginning to become ill.
THE BOYS 12:14PM (11/27/2009)
Going going going gone, that will be Chrysler, I owned 2 and both had to go to the lemon law. sour grapes to me. service sucks, maybe if they trained their service repair people to repair all the defect problems that would be a start. The gas mileage is another problem , very poor based on all other vehicle mfg.'s. Would I buy another Chrysler, only if they were the only car on earth, otherwise I say bye bye Chrysler. good luck in the after world.
Rev Junkie 10:10PM (11/23/2009)
And now thanks to Employee Pricing Plus-to-the-eighth, whenever you buy a Sebring, Avenger, Caliber, Nitro, PT Cruiser, or Aspen, you get the rest in inventory free, along with the eternal gratitude of every salesman at the dealership!
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