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Chrysler Sets Off Summer Car Sales War

June 22, 2006

• Truck and SUV Sales Plunge in August • GM Aims High-Mileage Cruze At U.S. Market • GM Offers Employee Prices to Spur Slow Sales • U.S. Consumers Favor Japanese and German Automakers • Automakers Report Huge Drop in Sales • GM Cuts Prices for February • Toyota Sales for 2007 May Surpass GM • New GM Sale May Challenge Bargain Hunters • GM Hangs on as World's No. 1 Automaker • Saturn Outlook Gets High Marks from Consumer Reports • Summer Car Sales Start to Sizzle • Consumer Reports Lists Best New Car Deals • Chrysler Dumps Remaining 2006 Inventory on Used Car Market --- • 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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