Chrysler offering millions to dealers and consumers to move 2006 inventory

Discussion in 'Wall St. News' started by S2007S, Dec 5, 2006.

  1. S2007S


    In this day and age it's a sin to still have 2006 models sitting on your dealer lot. Unfortunately for dealers under The Chrysler Group umbrella, their lots are teaming with '06 metal. The Detroit News quotes analyst John Casesa of Casesa Shapiro LLC as saying, "To have a third of your inventory in old models when you're two months into the (2007) model year, that's heavy." Heavy indeed, John.

    Chrysler has put into effect two campaigns that it hopes will start clearing out the lots of last year's inventory. The first is aimed at the dealers themselves and involves about $500 million in dealer cash incentives to sell 2006 models. Dealers will earn an additional $2,500 to $7,000 for every 2006 model they sell. The easiest to sell models like the Dodge Charger and Chrysler 300 will earn dealers $2,500 unit per unit, while the tough sell trucks and SUVs like the Ram pickup and Durango will fetch a hard-earned $7,000 per unit. Consumers will be happy to know that on average Chrysler passes 85% of that money on to consumers.

    In addition to lower transaction prices from the dealer cash Chrysler's shelling out, more than 3 million consumers are receiving coupons worth $1,000 that can be used towards the purchase of most 2006 and 2007 models. These coupons can be added on top of any existing incentive offers, as well. The only vehicles excluded are the 2007 Chrysler Sebring sedan; Dodge Viper sports car, Nitro, and Sprinter van; Jeep Wrangler, Patriot, and 2006/07 Grand Cherokee SRT-8.

    The coupon mailing is the largest ever sent about Chrysler, and while the dealer cash is not being advertised to the public, you heard it here that these double discounts are in effect and now might be the best time to pick up that 300C you've had your eye on.

    [Source: The Detroit News]
  2. S2007S


    I could just imagine the incentives F and GM are offering to move their 2006 models as well.
  3. Why don't they offer higher rewards to the GM Mastercard flex card holders...Like double value for existing points?

    That would get some of the "captive" future buyers in early! We get 1% cash back on all purchases and it triples to 3% if we purchase a GM vehicle...why not even double it again this month? and the beginning of each new calendar year for a few months? The dealers would love it, as it comes out of corporate.

    Send the link of this post to the powers-to-be...

    Michael B.

    P.S. Wifey might very well get a Hummer! but she better let me park next to it, with my 1990 Ply..Voyager w/sim woo gra...
  4. IMO, the US auto manuf. suffer from the long held belief of the inferiority of their products compared to foreign imports. There was a piece in the newspaper around here (NJ) about an auto mechanic who said that the new American cars are just as good as foreign cars, but people still remember how bad they were, and don't buy them. And parents tell their kids about it. My point is, GM, etc. need to practically GIVE the cars away for a year or two, and promote that they are doing it to prove how good the cars are NOW. Otherwise, they are screwed, IMO.
  5. Forget that, I am impressed that GM is offering 100k warranty on all 07. Now we are talking. That might get my to stop looking at foreign car only mfg. That is the only way to restore the confidence of the American car buyer. Because we all know they are less reliable period. Your 80 simulated panel excluded ES, or shall I say exception to the rule. :p
  6. is a 1990...I would not be seen in a 1980...:) :)

  7. That's because the auto mechanic probably worked for an American car dealer, but personally, I would never buy an American car or suv. Why would you want to when you can get a Mercedes, BMW, Porsche, or Ferrari.
  8. My 1990 is better... you know why? no is 26 bucks a month...

    and that simulated wood grain is posh...

    Buy America...or in the end we will all be screwed.

  9. I do my 03 Camry was built in Kentucky, and my 96 Corolla was built in Fremont, CA at the joint GM/Toyota Plant. You do know some of the American mfgs. with be mfg. in China soon right? I believe some of them already mfg. in Mexico. In fact, on a different not, alot of Volkswagons are made just South of TJ.
  10. Well then...America can be like the Aztecs...divide and conquer...

    Buy American...:)I am avoiding this whole discussion, carry on fellah's


    #10     Dec 6, 2006