DaimlerChrysler Raises Discounts

In an effort to reverse plunging sales, DaimlerChrysler increased buying incentives for U.S. consumers, with rebates of as much as $3,000 on some models. The company also said it will idle 2,800 workers for one week to cut inventories. The $3,000 rebates are being offered on the Chrysler Town & Country and certain models of the Dodge Caravan and Chrysler Voyager minivans. Minivan buyers also can get $1,000 rebates with financing rates at 0.9% for three years. The auto maker added incentives of $1,500 or $1,000 rebates on the Jeep Cherokee and Grand Cherokee SUVs, along with 0.9% to 5.9% loans. Rebates were doubled to $2,000 on its sedans--the Chrysler Concorde, 300M and LHS and the Dodge Intrepid--and rebates on smaller cars were boosted by $500. The company said it will shut down its Jeep Cherokee production line in Toledo, Ohio, for one week starting Monday, affecting about 2,800 of 5,000 employees at the plant. On Tuesday, DaimlerChrysler said its U.S. sales in July fell 12%, with revenue from cars declining 21% and sales of minivans falling 29%. DaimlerChrysler closed up 56 cents at $52.81 on the New York Stock Exchange.