Chrysler Boosts Incentives on 2003s

DETROIT October 3, 2002 AP reported that DaimlerChrysler AG's Chrysler division followed the lead of two bigger U.S. rivals Thursday and boosted incentives on a variety of 2003 models.

Chrysler's new deals came two days after General Motors Corp. and Ford Motor Co. announced their latest zero-percent financing offers in the continuing pricing war that began last year.

Chrysler said it would now offer 5-year, no-interest loans on minivans and 2.9 percent, 60-month loans on all 2003 cars that previously carried a 4.9 percent rate.

Spokesman Marc Henretta said the automaker would offer zero-percent loans for periods less than five years on 23 different 2003 model cars and minivans.

Chrysler also raised cash rebates on certain models, including the popular Jeep Grand Cherokee, from $1,000 to $2,500.

The new incentives, which began Thursday, will run through Nov. 4, Henretta said.

He said company officials, who review their incentive programs daily, huddled intently after Ford and GM raised the stakes earlier in the week.

"You've got to be competitive in the marketplace to succeed, and we think we've given our dealers the best plans in the industry," Henretta said.

Incentive programs were introduced after demand dropped following the Sept. 11 attacks and have been the trademark of the industry this year.

The deals have been credited for this summer's blistering sales pace, although sales slowed somewhat last month as dealers sold their remaining 2002 models.

Wes Brown, an analyst with Nextrend in Thousand Oaks, Calif., said automakers traditionally have offered incentives at the end of the calendar year to help dealers rid themselves of current-year models.

These days, however, the major domestic automakers are forced to offer such programs simply to compete with their European and Asian counterparts and to meet consumer expectations, Brown said.

"Their brands are not what most buyers want, so they have to give consumers that extra, added reason to be on the shopping list," he said.

Ford said Tuesday it will offer zero-percent financing on most 2003 Ford brand trucks and sport utility vehicles. The incentives are available through Jan. 2. Interest-free financing now is available on nearly the entire line of Ford brand cars, trucks and SUVs.

GM announced zero-percent financing for five years on most new 2002 and 2003 GM passenger cars and minivans. The world's largest automaker also is offering cash back on 2002 and 2003 trucks.

GM will continue to offer APR financing rates of zero percent for 36 months, 2.9 percent for 48 months and 3.9 percent for 60 months or cash rebates up to $2,000 for qualified buyers on 2003 model Buick, Cadillac, Chevrolet, GMC, Oldsmobile and Pontiac cars and trucks. The programs runs through Oct. 31.