Chrysler Group, the US arm of Germany’s DaimlerChrysler AG, plans a massive $100 million (€85.34m; £61.27m) advertising push this summer in the hope of driving consumers out of discount mode.
It seems Joe Public is reluctant to purchase at current levels of discounts and zero-interest finance. May sales are reportedly sluggish, although no firm data are expected until June 3 when the Big Three automakers will reveal their sales for the month.
General Motors on Wednesday announced a new advertising campaign hyping quality rather than discounts. But according to J D Power & Associates’ chief economist Bob Schnorbus, consumers could be holding out for plusher deals.
“They're expecting higher incentives in this environment of weak sales and high inventories,” he opined. “Consumers might be waiting for manufacturers to up the ante.”
Data sourced from: The Wall Street Journal Online; additional content by WARC staff