autoevolution
 

Chrysler Lures Dealers with Extra Cash

With most carmakers seeing their sales going down in the last few months, Chrysler tries a different market strategy that could help them deliver more cars to dealerships across the country. In short terms, the American carmaker offers extra incentives to dealerships participating to a new program which asks them to buy more vehicles by the end of the year, with a cut-rate floorplan interest rate next year, according to a report released by Autonews.

But more importantly, Chrysler officials are almost begging for Government support, asking dealerships to contact Congress members and urge them to allocate new funds for US-based carmakers. Last week, Chrysler launched a public video asking US citizens and company's employees to get in touch with their lawmakers and demand them to approve the loan.

Jim Press, Chrysler's co-president, admitted that this recently-started dealership program is basically one of their latest ways for fighting against the global economic crisis, asking dealership to ignore reports regarding Chrysler's future and to focus on re-attracting the buyers.

"What we're doing is fighting for survival. We recognize it's a hand-to-hand combat situation where we're digging for every sale,” Press was quoted as saying by Autonews.

Chrysler's authorized dealerships are now divided into two parts, agreeing or declining the US automaker proposal. Basically, dealers are afraid that buying even more Chrysler models could prove to be the worst investment they made, with tens of unsold units still in their lots.

"Nothing they said makes me want to buy more cars," a dealership official told Autonews. "If a company goes bankrupt, there's some doubt about their ability to be a going concern. These vehicles lose their value,” another representative added.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories