Posted on November 19, 2005 at 3:43 pm by Jeff
Chrysler responds to Ford and GM’s latest incentives to sell more cars.
DETROIT (Reuters) - DaimlerChrysler’s Chrysler division said Thursday it was raising its consumer incentives in a bid to offset slowing U.S. vehicle sales.
The move follows sweeter incentive offers announced earlier this week by General Motors Corp. and Ford Motor Co. as Detroit’s price war heats up again as part of a traditional year-end sales push.
Chrysler spokesman Kevin McCormick said that starting next Monday the automaker would offer U.S. car buyers a debit card with $2,367 in credit to use toward the purchase of gasoline.
He said Chrysler would also begin offering car buyers free scheduled maintenance and an extended five-year, or 60,000-mile warranty. The new incentives will remain on offer through Jan. 3, McCormick said.
Posted on November 18, 2005 at 9:17 am by Jeff
DEARBORN and AUBURN HILLS, Mich. (Nov. 18, 2005) — Close on the heels of General Motors’ announcement of a Red Tag Event, both Ford and Chrysler announced incentives programs as well.
As for Ford, its program — Keep It Simple — started Wednesday and is set to conclude Jan. 3, according to Bloomberg. The plan covers most 2005 and 2006 models. This is the first time the automaker is offering incentives on its gas-electric hybrids.
For instance, thanks to Ford’s plan, vehicles such as the 2006 Escape, which has a $20,685 MSRP, will be offered for $19,794, along with a rebate of $2,500. The final price is $17,294.
Meanwhile, Chrysler Group announced its Miles of Freedom Plan, which is an incentive program offering discounts on select 2005 and 2006 models.
From Nov. 21 to Jan 3, the Miles of Freedom Plan offers customers who purchase select models two years of free gas, two years of free scheduled maintenance and a 5-year/60,000 mile full-mechanical warranty.
“Owning a Chrysler, Jeep or Dodge vehicle should be a worry free experience for customers,” explained Joe Eberhardt, Chrysler Group executive vice president of global sales, marketing and service. “Therefore, our goal with the Miles of Freedom Plan is to provide our customers with ownership benefits unequaled in the industry. The combination of free gasoline, free scheduled maintenance and a full-warranty puts our customer’s mind at ease and allows them to fully experience the joy of driving one of our vehicles.”
Chrysler’s new incentive program will be supported by TV commercials during NFL telecasts. The commercials feature testimonials about the benefits of the Miles of Freedom Plan. Additionally, the automaker will run supporting print, electronic and Internet ads.
Finally, Chrysler executives said that customers will have a choice as to which incentives they would like to utilize at the time of purchase. Executives said all cash-back incentive offers, including November bonus cash, are still applicable on 2005 and selected 2006 units. The Miles of Freedom Plan is an alternative incentive offering the customer may opt to take advantage of instead of utilizing the November cash-back incentive offer. However, executives noted the cash-back incentive offers end Nov. 30.
In related news, Ford is also make a big push for its hybrid offerings, making a commitment to increase hybrid production ten-fold, reaching 250,000 units annually by the end of the decade.
The Mariner joins Ford’s Escape Hybrid as two of five hybrid models the automaker plans to have on the road in the next three years.
“Our goal is to build hybrid and conventional models on the same line and to offer hybrids with the same style and same functionality as convention vehicles,” explained Nancy Gioia, director of Ford’s Sustainability Mobility Technologies and Hybrid programs.
“We didn’t have to invent an entirely new vehicle to house our hybrids,” she continued. “We’re putting hybrid into mainstream products that are popular today. The Ford Escape and Mercury Mariner Hybrids were born and built in the USA, and they are the only hybrid SUVs made in America. We are very proud of this accomplishment.”
Posted on November 17, 2005 at 10:20 am by Jeff
DETROIT — Ford Motor Co. is following General Motors back into the incentive fray with its own year-end sales blitz called “Keep It Simple.”
Ford announced the plan Wednesday. It’s a move back toward the one-price selling that appealed to car buyers during last summer’s employee-pricing blowout.
The automaker will print new window stickers for most of its Ford, Lincoln and Mercury brand vehicles. The stickers will show the MSRP, the Simple Plan price, cash incentives and the bottom-line price.
Ford wouldn’t say whether its new prices are comparable to GM’s new Red Tag Sale discount. GM’s price is slightly higher than the price someone getting the supplier discount would pay.
Keep It Simple “represents a very good deal, but I’m not going to get into discussing plan pricing levels,” Ford spokesman Jim Cain said.
Ford did provide some examples, though. A 2006 Ford Escape that stickers at $20,685 would cost $17,294 under the program. A 2006 Lincoln Navigator with a sticker price of $53,175 would have a new bottom-line price, including $2,500 in cash rebates, of $46,747.
Ford’s new program runs from Wednesday through Jan. 3, 2006. All 2005 and 2006 models are included except for the Ford Fusion, Lincoln Zephyr, Mercury Milan, Ford Mustang and Ford GT.
