Chrysler Offers $1000 Rebate on PT Cruiser- Why? Sales Down 36%-Oh!

AUBURN HILLS, Mich. AP is reporting that DaimlerChrysler AG Chrysler group is offering its first-ever cash rebates on the PT Cruiser.

Buyers in the Midwest and Northeast can get $1,000 cash back on the retro vehicle, DaimlerChrysler spokesman James Kenyon confirmed Friday.

The Detroit News reported Friday that demand for the PT Cruiser fell 36 percent nationally in January.

Gary Dilts, Chrysler's senior vice president of sales, told the newspaper that softening domestic auto sales and PT Cruiser's image as a niche vehicle with a $25,000 price tag caused the demand decline.

Last year, Chrysler sold 144,717 PT Cruisers, which were launched in the spring of 2000. Less than a year ago, demand had prices rising and consumers signing up for waiting lists to take delivery.

Chrysler is planning a new campaign, highlighting PT Cruiser's $16,000 starting price, to attract younger buyers and generate volume sales.