Article published July 23, 2009
Chrysler to match federal incentives
The new incentives from Chrysler should help spur sales of Toledo-made SUVs such as the Dodge Nitro, above, and the Jeep Liberty, below.
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By LARRY P. VELLEQUETTE
BLADE BUSINESS WRITER
After countless hours spent doing research online, Dale Shipman pulled the trigger yesterday and signed paperwork to buy a new car which, thanks to a new federal program, will give him $4,500 to scrap his $500 minivan.
But after an announcement yesterday by Chrysler Group LLC that it will match the government's incentive on the vast majority of its models, Mr. Shipman walked out of Charlie's Dodge in Maumee paying less than half of the sticker price on his new car.
"I was going to buy a used car, but it's not very often that you get something back from the federal government," Mr. Shipman said.
Tomorrow, the Bowling Green resident will go to Maumee and drop off his battered 1994 Dodge Grand Caravan and drive away in a new silver 2009 Dodge Caliber. "With the other discounts, I'm going to get a new car for what I would have paid for a 2-year-old used one," Mr. Shipman said.
Consumer interest in the government's $1 billion Car Allowance Rebate System - which widely is being called the "cash for clunkers" program - already has lured shoppers back to local showrooms with offers of an additional $3,500 or $4,500 in cash toward new vehicle purchases with the trade-in of a qualifying "clunker" vehicle.
Many potential shoppers don't qualify for the program's strict miles per gallon restrictions, but the additional showroom traffic will be welcomed by auto dealers struggling with the worst industry sales rate in 30 years.Pat Swift-Oladeinde, a spokesman with the National Highway Traffic Safety Board, which is administering the CARS program for the government, said the pro-gram's rules will be released and put in place tomorrow.
"If we're listening to our hot line, there's a lot of interest," Ms. Swift-Oladeinde said.
Chrysler's promotion, which was announced yesterday, offers customers up to $4,500 in consumer incentives or zero percent financing for up to 72 months on all but two 2009 models. Excluded are the hot-selling Toledo-made Jeep Wrangler and the Dodge Challenger.
The Chrysler incentive offer, coupled with a qualifying $4,500 reimbursement through the cash-for-clunkers program, can save consumers $9,000 - or even more with additional discounts available to Chrysler employees or their relatives.
The new incentives from Chrysler should help spur demand for Toledo-made sport utility vehicles, most of which don't qualify for the government program because of their low mileage rating.
Workers at the Toledo Jeep Assembly Complex are to return to their jobs Monday to resume building the Wrangler, Jeep Liberty, and Dodge Nitro.
The long shutdown of many of Chrysler's factories - the Toledo plant has not built a new Liberty or Nitro since April - has left dealers struggling to find vehicles to meet customer demand just as the added incentives will kick in.
"If I could tell consumers one thing, it's don't be too fickle. Inventories are at an all-time low, and everybody's in the same boat," said Ken Millen, new car sales manager at Charlie's Dodge.
Contact Larry P. Vellequette at:
lvellequette@theblade.com
or 419-724-6091.
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