Chrysler Ups the Ante in Minivan Price War

Chrysler Corp. raised the stakes in a growing minivan price war Thursday, offering rebates of up to $1,000 on some of its better-equipped 1995 models.

The incentives are the first Chrysler has offered on its popular long-wheelbase 1995 Dodge Grand Caravan, Plymouth Grand Voyager and Chrysler Town & Country models. It also increased most rebates on short-wheelbase models, which were previously set at $500.

Chrysler’s move follows Ford Motor Co.’s decision last week to offer a $500 leasing rebate on its Windstar minivan, which first arrived in dealer showrooms less than a year ago and was expected to sell without incentives for some time.

But both Ford and Chrysler are trying to shrink dealer inventories that have swollen to a 94- to 110-day supply of vans, considerably higher than the 65-day supply considered to be ideal.