Chrysler boosts sales incentives
#1
09-06-2007, 11:27 PM
Chrysler boosts sales incentives
Chrysler boosts sales incentives[/align]No-interest loans, cash rebates offered on some 2007 models to clear the lots for 2008 vehicles.[/align]DetNews.com[/align]Jeff Bennett / Bloomberg News[/align]
Chrysler LLC will offer six-year, no-interest loans and cash rebates on some of its 2007 models, a day after reporting its first sales drop since being taken over by private-equity firm Cerberus Capital Management LP.[/align][/align]The offer starts today and runs through Oct. 1, Chrysler spokeswoman Lori Pinter said in an interview. The new incentives are in addition to five-year, no-interest loans Auburn Hills-based Chrysler will continue to offer on some models.[/align][/align]The third-largest U.S.-based automaker, shed by DaimlerChrysler AG, is trying to boost U.S. sales of its cars and trucks after a 6.1 percent decline in August. For the first eight months of the year, Chrysler sales have slipped 2.7 percent, while Ford Motor Co.'s fell 12.5 percent and General Motors Corp.'s dropped 7.4 percent.[/align][/align]"This is very aggressive on Cerberus's part and shows that they aren't sitting still," said Tom Libby, an analyst at marketing-research firm J.D. Power & Associates, based in Westlake Village, Calif. "They have their own agenda and they are determined."[/align][/align]Cerberus closed on a deal to buy an 80.1 percent stake in the automaker for $7.4 billion on Aug. 3, untying Chrysler's nine-year partnership with Stuttgart, Germany-based Daimler.[/align][/align]The six-year loans are available to buyers of the Dodge Grand Caravan, Chrysler Town & Country long-wheel-based minivan, Dodge Dakota, Dodge Durango and Chrysler Aspen, Pinter said. Five-year loans, which began in May, are offered for purchases of the Jeep Liberty, Jeep Grand Cherokee and Chrysler Pacifica.[/align][/align]Consumers must choose between the no-interest loans and cash rebates.[/align][/align]"The incentive action is not outside the norm for this time of year when we are looking to sell down the 2007 models to make room for the 2008 models," Pinter said.[/align][/align]GM today began offering $3,000 bonus cash on certain 2007 model-year sport-utility vehicles, such as the Cadillac Escalade and Chevrolet Tahoe, said spokesman John McDonald.[/align][/align]The program, which applies to vehicles made prior to Feb. 15, runs to Sept. 24.[/align]
Chrysler LLC will offer six-year, no-interest loans and cash rebates on some of its 2007 models, a day after reporting its first sales drop since being taken over by private-equity firm Cerberus Capital Management LP.[/align][/align]The offer starts today and runs through Oct. 1, Chrysler spokeswoman Lori Pinter said in an interview. The new incentives are in addition to five-year, no-interest loans Auburn Hills-based Chrysler will continue to offer on some models.[/align][/align]The third-largest U.S.-based automaker, shed by DaimlerChrysler AG, is trying to boost U.S. sales of its cars and trucks after a 6.1 percent decline in August. For the first eight months of the year, Chrysler sales have slipped 2.7 percent, while Ford Motor Co.'s fell 12.5 percent and General Motors Corp.'s dropped 7.4 percent.[/align][/align]"This is very aggressive on Cerberus's part and shows that they aren't sitting still," said Tom Libby, an analyst at marketing-research firm J.D. Power & Associates, based in Westlake Village, Calif. "They have their own agenda and they are determined."[/align][/align]Cerberus closed on a deal to buy an 80.1 percent stake in the automaker for $7.4 billion on Aug. 3, untying Chrysler's nine-year partnership with Stuttgart, Germany-based Daimler.[/align][/align]The six-year loans are available to buyers of the Dodge Grand Caravan, Chrysler Town & Country long-wheel-based minivan, Dodge Dakota, Dodge Durango and Chrysler Aspen, Pinter said. Five-year loans, which began in May, are offered for purchases of the Jeep Liberty, Jeep Grand Cherokee and Chrysler Pacifica.[/align][/align]Consumers must choose between the no-interest loans and cash rebates.[/align][/align]"The incentive action is not outside the norm for this time of year when we are looking to sell down the 2007 models to make room for the 2008 models," Pinter said.[/align][/align]GM today began offering $3,000 bonus cash on certain 2007 model-year sport-utility vehicles, such as the Cadillac Escalade and Chevrolet Tahoe, said spokesman John McDonald.[/align][/align]The program, which applies to vehicles made prior to Feb. 15, runs to Sept. 24.[/align]
