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Chrysler Sets Off Summer Car Sales War

June 22, 2006

• GMAC Changing Name to Ally Bank • New Car Sales Show Improvement From May • April Dismal For U.S. And Foreign Carmakers • Chrysler Files for Bankruptcy, GMAC Takes Over Financing • Auto Sales Stagnant, But Hope Appears • What Would a Chrysler Bankruptcy Mean For You? • U.S. Carmakers Getting More Federal Aid • GM Cuts More Jobs, Eyes China • New Car Sales Plunge in February • Car Buyers Seeking Higher Fuel Economy • Video: Do Women Really Hate Car Shopping? • GM Plans New Minicar, Electric Cadillac • GMAC Becomes a Bank • White House to Loan Carmakers $17.4 Billion • Chrysler Closing Car Plants for 30 Days • What Would a Washington-Designed Car Industry Look Like? • States Want Stronger Used Car Rule • Industry Troubles Cloud LA Car Show • Carmakers Get Neither Love Nor Money From Congress • Taxpayers Headed For Automotive Bailout • Time May Be Running Short for U.S. Carmakers • Feds Move Closer to Carmaker Bailout • New-Vehicle Buyers Turn to the Web in Record Numbers --- • More about Auto Sales ...

Chrysler plans to offer an employee-discount program for consumers beginning July 1, marking the first volley of what is almost certain to be another summer long new-car price war.

The sales promotion is virtually the same as the one the automaker ran last summer. The plan allows all customers to buy Chrysler group vehicles at the same heavily discounted prices available to Chrysler group employees.

The new car price war in the summer of 2005 got under way when General Motors offered employee pricing in June. Ford and the Chrysler group followed along in July and the sales lasted through September.

Chrysler is considering a new return policy that would allow customers who are unhappy with their purchase the opportunity to return the vehicle within 30 days. The automaker is also considering zero-percent financing with the employee discounts.

The 30-day guarantee is an idea Chrysler executives hope will eliminate doubts among buyers who remember the past Chrysler problems with quality.

Customers returning a vehicle would pay a penalty and a mileage fee.

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