Chrysler Mega Deals Coming

[jake75]

Read this - employee pricing + generous rebates + 0% financingChrysler pushes discounts, rebates to win salesKIMBERLY S. JOHNSON, THE ASSOCIATED PRESSJanuary 22, 2009DETROIT - Chrysler said Thursday it is rolling out new incentives designed to tempt consumers into its dealerships and drive a much-needed sales boost.The incentive program will offer employee pricing discounts to the general public and additional rebates. The deals are in addition to a zero-per cent financing offer the Auburn Hills, Mich.-based company announced last week, after Chrysler's financial arm received a $1.5 billion infusion from the government's bank bailout program."We have an extraordinary offer we're coming out with," said Chrysler LLC spokeswoman Carrie McElwee on Thursday. "We did announce the incentives with zero-per cent financing last week, and we're offering additional incentive prices today."Customers can get cash discounts of up to $3,500 for 2009 model year vehicles and up to $6,000 on 2008 model year vehicles.

[jake75]

More detail - DETROIT -- Chrysler LLC announced a major new incentive program Thursday aimed at clearing out dealers' inventories of unsold vehicles and jump starting revenue for the ailing auto maker.The new incentives will offer customers the same price Chrysler normally only offers its own employees, plus 0% auto loans for up to 48 months. Also available will be additional rebates of up to $6,000 off the employee price on 2008 models and up to $3,500 on 2009 models, Chrysler said in a statement. The offers are effective Jan. 26.Normally auto makers only offer a choice of 0% financing or discount pricing and not both -- and rarely have car companies offered discounts off their employee prices."We have some extraordinary -- extraordinary -- discounts," said spokeswoman Carrie McElwee. "This is something that'll hopefully bring consumers into showrooms.""I think it's a great step," said Bill Golling, who owns three dealerships in Michigan and Ohio and is a member of Chrysler's National Dealer Council.Following a deep downturn in sales in the fourth quarter, Chrysler has been unable to generate much if any revenue so far this year because all of its plants have been idled since before Christmas and dealers are cutting back orders of new cars and trucks so they can clear their lots of the stock they already have. Without much revenue coming in, Chrysler is likely using up significant amounts of cash.Spurring revenue is critical for Chrysler because the company nearly ran out of money late last year before the U.S. government provided $4 billion in emergency loans to the company. Chrysler has said it hopes to get $3 billion in additional loans but needs to show the Treasury Department a turn around plan by Feb. 17.In an effort to boost its long term outlook, earlier this week Chrysler announced a strategic alliance with Italy's Fiat SpA to show the government it has a strategy to survive, but the alliance could be contingent on lender concessions and additional loan money. Under the terms of the deal, Fiat is not required to put any cash into Chrysler.Chrysler is struggling because of a downturn in overall auto sales in the U.S., but it is also facing difficulties because its former financing unit, Chrysler Financial, has cut way back on the number of auto loans it is providing.The new incentive program is designed to spark sales and help dealers move vehicles they have had on their lots for months.Chrysler vehicles that were sold in December had been on dealer lots an average of 142 days, the most of any auto maker and up from 82 days a year ago, according to J.D. Power & Associates. The industry average was 92 days, up from 59 days in December 2007, the market researcher said.

[ou.grizzly]

A family member 3-4 weeks ago picked up a 2008 Dodge Nitro for $15,000 out the door. I do wonder how much it would of been with these upcoming incentives.

[Silversn95]

This seems like a desperate move from a desperate company. Generous rebates on top of employee pricing and 0% means they are losing money on the sale. Not good. I fear Chrysler is not going to see the end of this year. Certainly not in one piece or under the same name.

[ColonelPanic]

we're slashing prices!!!!! everything must go!!!!!Sounds like some great deals... perhaps selling things at fire sale prices is better than not selling them at all?

[breezd]

Hmm.... wonder if SRT's will actually be included in this sale. Usually they are not... if they are, I may look at a Caliber SRT4!Wonder if I could get additional employee pricing perks on top of this sale since my grandpa is retired from Chrysler... (I can dream right?)