Chrysler offers more incentives to buy

May 07, 2009|Dan Strumpf, Associated Press

NEW YORK - Chrysler said yesterday it is offering up to $6,000 worth of incentives on its 2009 cars and trucks as it races to emerge from bankruptcy protection and counter a prolonged US sales slump.

The new incentives - which come off prices negotiated with dealers - are Chrysler LLC's latest push to keep customers coming into its showrooms. They replace a promotion launched in January that included so-called employee pricing plus rebates and zero percent financing. Over the weekend, the company launched an advertising campaign that included full-page ads in newspapers across the country proclaiming it is "building a new car company."

The number three US automaker filed for Chapter 11 bankruptcy protection last week and is trying to complete a sale of most of its assets to Italian automaker Fiat Group SpA. It hopes to emerge from bankruptcy in 30 to 60 days and is working to allay consumer fears that its cars won't be backed by warranties. All of its factories have been idled.

Chrysler said the incentives are aimed at reducing the bottom-line price of the car. They include $4,000 in cash, $1,000 for current Chrysler vehicle owners, and up to $1,000 for financing through participating credit unions.

With all the incentives, a 2009 Jeep Grand Cherokee would carry a sticker price of $25,230 instead of $31,320 - a discount of 19 percent. A Chrysler 300C would run $31,885 instead of $37,885, a 16 percent reduction. Not all models qualify for the full $4,000 cash back.

Chrysler's sales are down 46 percent for the first four months of the year. The automaker has been subsisting on $4 billion in government loans.