Chrysler still struggling with inventory issues

Chrysler has offered its dealers $1,000 for every car it sells in the next two months in exchange for a promise from the dealer not to cut back their March sales orders, theDetroit Free Press reports. The inventory back up is at 85 days, about 25-35 higher than the automaker would like it to be. While some dealers appreciate the idea (particularly the fact that it’s retroactive to February 1), other dealers are likely annoyed they’re being forced to order more cars when they can’t sell all the ones they already have.

By Erin Mays
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Chrysler has offered its
dealers $1,000 for every car it sells in the next two months in exchange for a promise from the dealer not to cut
back their March sales orders, the Detroit Free Press reports. The inventory back up is at 85 days, about
25-35 higher than the automaker would like it to be. While some dealers appreciate the idea (particularly the fact that
it’s retroactive to February 1), other dealers are likely annoyed they’re being forced to order more cars when they
can’t sell all the ones they already have.

In the eyes of Wall Street, however, incentives to move cars
are much better than the alternative: cuts in production.