P. M. BRIEFING : Chrysler Announces Incentive Program With Mini-Van Rebates

In an attempt to improve slumping sales, Chrysler Corp. today announced an incentive program on a variety of vehicles--including the first rebates on its popular mini-vans--as the nation’s No. 3 auto maker tried to boost flagging sales.

Chrysler announced a $1,000 rebate on the mini-vans, which, according to Chrysler Motors Chairman Ben Bidwell, have never had incentives during their six years of production.

Chrysler, which holds more than half the mini-van market, will take its two mini-van plants out of production in June and July to retool for a new vehicle, Bidwell said. He said the incentive strategy is to keep overtime production going during the next six months before the plants close.

Other incentives announced today included rebates on Chrysler vehicles ranging from $500 to $2,000 or interest rates from 6.9% to 9.9%, depending on the length of the loan. Some mini-van loans will have slightly lower interest rates.

The company also guaranteed that if better incentives are announced before Sept. 30, it will make up the difference to customers who buy Chrysler vehicles now.

In late March, when Ford kicked off incentive programs, General Motors and Chrysler followed suit within four days. Those programs stimulated sales but dented profits.