Chrysler Ups Incentives After Sales Drop

DETROIT February 3, 2003; Reuters reported that the Chrysler side of DaimlerChrysler AG said on Monday it was raising its consumer incentives, after announcing a 12 percent drop in its January U.S. auto sales.

Chrysler executives have long complained about Detroit's escalating price war, and the deep discounts that General Motors Corp. has introduced in the wake of the attacks on America on Sept. 11, 2001.

But GM and Ford both raised their incentives last week. And Chrysler spokesman Marc Henretta said the company was following suit by adding $500 to the cash rebates on its Dakota and Ram Heavy Duty pickup trucks.

The added cash boosts rebates on the Dakota to $3,000 in most parts of the United States and to a maximum of $2,00O on the Ram, Henretta said.

Henretta said Chrysler was also offering a cut-rate six-year loan for Dakotas and a deal that would waive lease payments on many vehicles if holders of the leases buy or lease a new Chrysler car or truck.