Autoblog

Smart's $99/month 'Cash for Clunkers' deal has a big, dirty secret

Chris Shunk — Mon, 06 Jul 2009 09:00:00 EST

Filed under: Car Buying, Marketing/Advertising, Smart

Cash for Clunkers won't be official for a few weeks, but some automakers are already looking to cash in on the once in a lifetime opportunity to take up to $4,500 off the price of a new car or truck. Smart is offering its quirky little Fortwo runabout for just $99 per month with the trade-in of a 'Clunkers' eligible vehicle.

Even though we were not terribly impressed with the car in our recent review, $99 per month with no money down sounds decidedly tasty, and a payment term of only 36 months sound even better, but closer inspection shows that the promotion is way too good to be true. Here is the stupifying fine print on the promotion:

$99 monthly payment based on customer trade-in of an eligible vehicle qualifying for the CARS $4,500 voucher level and a 36-month balloon loan with $0 cash due at signing and a final balloon payment of $6,667 at the end of the loan term and a $ 13,335 MSRP which includes the destination charge and excludes tax, title and dealer fees.

A $6,667 lump sum is one hell of a payment - more than most of us could reasonably fork over at once - and certainly more money than most people who are seriously considering a $99 lease could afford. The total payment, which doesn't include taxes, title, or destination, comes in at $14,731 on a vehicle with a $13,335 MSRP.

[Source: Smart USA via All Cars All The Time]

Smart's $99/month 'Cash for Clunkers' deal has a big, dirty secret originally appeared on Autoblog on Mon, 06 Jul 2009 09:00:00 EST. Please see our terms for use of feeds.

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6,400 Chrysler hourly workers want buyout, 40% more than planned

John Neff — Fri, 08 Jun 2007 17:33:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, Daimler, UAW/Unions

Back in late February we reported on Chrysler's early retirement and separation program that the automaker hoped would help it shed 13,000 jobs over the next three years. The company was planning on saying goodbye to about 5,700 hourly (read: union) workers this year, of which around 1,000 would be from Canada. That means Chrysler hoped at least 4,700 of its hourly workers in the U.S. would take the buyout offer that offered a lump sum of up to $100,000 to workers willing to leave.

The Detroit Free Press is reporting that in fact around 6,400 hourly workers in the U.S. have said they're interested in taking the buyout, nearly 40% more than Chrysler planned. While the purchase of Chrysler by Cerberus Capital Management was seen as a good thing for the automaker going forward, the larger than expected response to its buyout offer suggests that many of Chrysler's hourly workers believe the writing's still on the wall. Analysts speculate that rather than stick around and drag down the company, these workers feel their retirement benefits will be more secure if they leave now to help the company and ensure its future.

Not expecting such high demand, Chrysler has also reportedly slowed down the buyout process to a halt. Only now have a number of workers departed who expressed interest in leaving the company when the program was announced in late February. It's like that some of those hoping to leave this year will be denied the buyout offer, which is something Ford was forced to do when too many salaried workers accepted its buyout offer.

[Source: The Detroit Free Press]

6,400 Chrysler hourly workers want buyout, 40% more than planned originally appeared on Autoblog on Fri, 08 Jun 2007 17:33:00 EST. Please see our terms for use of feeds.

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BREAKING: Chrysler Group reveals details of union worker buyouts

John Neff — Tue, 27 Feb 2007 17:30:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, Daimler

This afternoon the Chrysler Group and the UAW released a statement revealing details of the early retirement and separation programs that will help the automaker reach its goal of shedding 13,000 jobs. Two-thousand jobs being eliminated are salaried positions, and we brought you details on those early retirement and buyout packages last week. Today's announcement affects the 11,000 hourly workers who the Chrysler Group hopes will choose to leave the company on a voluntary basis.

There are two plans available to hourly workers, which include an Incentive Program for Retirement (IPR) and an Enhanced Voluntary Termination of Employment Program (VTEP). The IPR allows hourly workers with 30 or more years of service with the company to accept early retirement in exchance for a lump sum of $70,000. It is presumed these retirees would keep all the benefits that are granted to a normal retiree. The VTEP, however, is available to any hourly employee with at least one year of credited service with the company. In exchance for leaving the company, the Chrysler Group is offering a lump sum payment of $100,000.

Any employees eligible for these programs were notified of their options via a letter today .

[Source: the Chrysler Group]

Continue reading BREAKING: Chrysler Group reveals details of union worker buyouts

BREAKING: Chrysler Group reveals details of union worker buyouts originally appeared on Autoblog on Tue, 27 Feb 2007 17:30:00 EST. Please see our terms for use of feeds.

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