Chrysler Adds $500 Customer Cash Incentives - GM Customers Can Delay Payments - Ford Extends 0%

DETROIT November 19, 2003; Sholnn Freeman writing for Dow Jones reported that DaimlerChrysler AG's Chrysler Group Wednesday added $500 in new customer rebates on most models, as Detroit auto makers continue to ramp up deals on 2004 models.

In another new program, General Motors Corp. is allowing customers to defer monthly payments for 90 days when they finance 2003 or 2004 model cars through GMAC, GM's money-lending arm. GM and Chrysler also are trying to lure existing lease customers into showrooms with an offer to waive remaining payments and certain penalties if customers take new vehicles.

Ford Motor Co. extended the term of 0% financing loans on the Ford Explorer sport-utility vehicle and Taurus sedan to 72 months from 60 months. Ford also revived a popular "$5 dollar a day" lease special on the 2004 Mustang. "As we've completed our 2003 sell-down, we've gradually been increasing incentive on 2004 models," said Jim Cain, a Ford spokesman.

The pace of auto sales has slipped in recent months, following strong sales in the summer. Consumers have balked at auto makers' new 2004 models, which generally have smaller discounts than 2003 models. So far in November, many dealers have characterized the sales as "spotty."

At the same time, incentives are escalating on new models faster than in previous years. Based on data from October, the car-buying site Edmunds.com reports average incentive totals on this year's new models at $1,900, compared with $1,685 last year