Chrysler To Introduce New Incentive Program

CHICAGO January 5, 2004; Ann Keeton writing for Dow Jones reported that the Chrysler Group, a unit of DaimlerChrysler AG , plans to introduce a new incentive program Tuesday.

On a conference call with analysts Monday, the company said it will offer 0% financing for 48 months, plus $2,000 cash back, to qualified buyers of some vehicles. Gary Dilts, vice president of sales, said the offer won't increase the overall level of incentives offered by the car maker.

Earlier Monday, Chrysler said December U.S. sales were up 2% over last year, led by the Chrysler Pacifica, up 14%, and Dodge Durango, up 26%. Total truck sales at the company rose by 6%, while auto sales dropped 16%.

The Dodge Ram truck continued to sell well, up 11% in December.

Dilts said Chrysler's U.S. market share in 2003 will likely drop by two or three percentage points, but the final data aren't in yet.

While Chrysler will continue to use incentives to attract buyers in 2004, Dilts said good pricing should help new vehicle models to sell. "We don't want to jack up incentives," he said.