Chrysler Extends Discounts to Match GM and Ford

31 January 2002

Chrysler Group is to increase the rebates it is offering on various models in a bid to keep up with its larger rivals in America’s ‘big three’ auto firms, General Motors and Ford Motor Company.

Discounts of up to $2,500 will be applied to minivans and two sport-utility models, up around $500 each. Rebates of around $1,500 are available on most other vehicles, while low-cost financing is also on offer.

Chrysler has until now resisted the trend towards heavy discounting led by GM and Ford. It has paid in falling market share, expected to be 1.3% down last year to 13.2%, a performance it does not intend to repeat in 2002.

However, the tactic may make it harder for parent DaimlerChrysler to hit its target of breaking even this year.

News source: Wall Street Journal