Chrysler Boosts Rebates on Cars, Minivans

DaimlerChrysler is raising rebates on cars, long-wheelbase minivans and pickup trucks in the U.S. as higher interest rates, stock market declines and higher gas prices begin to slow consumer spending. The third-largest auto maker’s share of the U.S. new-car and truck market has fallen to 16.6% this year through April, from 17.7% in the year-earlier period. Chrysler is expected to report today that its U.S. sales during May fell about 15% from May 1999, its best month ever. The Dodge Durango sport-utility vehicle, which until now had no price break, will get a $1,000 rebate. Incentives on minivans such as the Dodge Grand Caravan and Chrysler Grand Voyager will rise to $2,000 from $1,750. The 2000 Dodge Ram pickup’s rebate will double to $2,000. In addition to consumer rebates, DaimlerChrysler also is offering dealers an increasing amount of cash back based how many vehicles they sell. Both moves are designed to reduce the need to offer low-rate financing as interest rates rise nationwide.