Filed under: Car Buying, Chrysler, LLC., Daimler, Dodge, Jeep, Earnings/Financials
Chrysler offering millions to dealers and consumers to move 2006 inventory
In this day and age it's a sin to still have 2006 models sitting on your dealer lot. Unfortunately for dealers under The Chrysler Group umbrella, their lots are teaming with '06 metal. The Detroit News quotes analyst John Casesa of Casesa Shapiro LLC as saying, "To have a third of your inventory in old models when you're two months into the (2007) model year, that's heavy." Heavy indeed, John.
Chrysler has put into effect two campaigns that it hopes will start clearing out the lots of last year's inventory. The first is aimed at the dealers themselves and involves about $500 million in dealer cash incentives to sell 2006 models. Dealers will earn an additional $2,500 to $7,000 for every 2006 model they sell. The easiest to sell models like the Dodge Charger and Chrysler 300 will earn dealers $2,500 unit per unit, while the tough sell trucks and SUVs like the Ram pickup and Durango will fetch a hard-earned $7,000 per unit. Consumers will be happy to know that on average Chrysler passes 85% of that money on to consumers.
In addition to lower transaction prices from the dealer cash Chrysler's shelling out, more than 3 million consumers are receiving coupons worth $1,000 that can be used towards the purchase of most 2006 and 2007 models. These coupons can be added on top of any existing incentive offers, as well. The only vehicles excluded are the 2007 Chrysler Sebring sedan; Dodge Viper sports car, Nitro, and Sprinter van; Jeep Wrangler, Patriot, and 2006/07 Grand Cherokee SRT-8.
The coupon mailing is the largest ever sent about Chrysler, and while the dealer cash is not being advertised to the public, you heard it here that these double discounts are in effect and now might be the best time to pick up that 300C you've had your eye on.
[Source: The Detroit News]
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Reader Comments (Page 1 of 1)
JJM3 2:16PM (12/04/2006)
I think you mean "teeming", not "teaming".
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rrr 2:26PM (12/04/2006)
Again i have to ask, why are they doing it? Because everyone wants their cars? Because their cars are so cool? Or because they make junk?
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KT 2:26PM (12/04/2006)
Yea, they aren't hurting. Everything is just fine. They'll move thru these cars, no problem.
Oh but wait, they're running overtime at their truck/suv plants. So, they must know something no one else does.
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Lithous 3:09PM (12/04/2006)
Why can't GM and Ford be more like Chrysler?
That was a question posed numerous times just months ago, now wasn't it?
It is freakin' great. When Chrysler has problems it is because they are American and when they are doing well then it is because of the Germans. Perfect.
Think about it. The Germans could sell off Chrysler as has been talked about. Yet many don't accept that they own Chrysler. And whether the Germans sell Chrysler or not, there won't be a single bad mark on the German company, it's the "American" Chrysler's fault for sucking. Not that the Germans should forsee any problems their subsidiary encounters, no way. What a joke.
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Richard Warren 4:01PM (12/04/2006)
"Again i have to ask, why are they doing it? Because everyone wants their cars? Because their cars are so cool? Or because they make junk?"
Or, management over estimated demand? This has been a Chrysler problem forever. Sizzle hot or liquid nitrogen cold. Been like that since the early 50's.
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Obvious Alias 4:10PM (12/04/2006)
The only Chrysler vehicle that even slightly interests me is the crossfire. The rest of their offerings (except for the PT cruiser) are almost as 'vanilla-bland' as Toyota.
However, I'm not about to hand off $30k to a dealer for one (even after incentives) when they're piled up on e-bay going for $17k. That kind of price difference is a bad sign.
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matt 4:14PM (12/04/2006)
I wish they would apply the $7000 incentive to the SRT-8 Magnum..
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Greg 8:56PM (12/04/2006)
The Bubble is Bursting Right before our eyes!!!!
We are in a Recession... and it's only getting worse!
Oil is back over $62.00 a barrel... Gasoline Futures closed today at $1.66.
*Housing starts are dead....
*Resale values of existing homes are falling...
*The job market has not been creating high quality jobs.
*Health care costs have in some cases tripled.
*Insurance for your home has DOUBLED and TRIPLED in the last 4 years alone along the coasts of FLORIDA.
*Food prices have risen, the ban on imported beef has caused meat prices to at least double, if not triple prices since the Big W has been put into office, and the US beef industry has done a great job stopping beef from Canada coming into the US over mad cow warnings, yet the same problems have been existing in US stocks.
I can keep going on and going on... but in the world of 'DEBIT CARDS'... most people don't even look at the prices anymore.
Funny, 3 years ago CNBC did a special in Colorado, I believe it was Denver, on how prices of homes had come down 25%.. from $400,000 down to $300,000. Last month, CNBC reported that Colorado was leading the pack on Foreclosures... connect the dots.
I was personally thinking of buying a new car last month... but after my trip to Florida last week and seeing For Sale signs everywhere.... in area's that no one can afford the Hurricane, Flood Insurance... I have decided to wait... because the Big Bang is coming.
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Gerry 12:48AM (12/05/2006)
There would be a small number of Chrysler vehicles I'd consider. I like the Jeep Liberty and even the Compass. The Dakota is a solid pickup, and the Viper still has some bite in it. Aside from that, though...
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James 1:25AM (12/05/2006)
Greg, This is your physician! As I said when you left my office: "Just take your meds every day and those scary monsters will quit coming out of walls to eat your brain". Now, take your meds and find your way back to your mom's house.
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Timmay 4:06AM (12/05/2006)
i was hopeful for chrysler until the new sebring then I gave up. Products in the pipeline don't look to promising and try as they might to ship jobs to Mexico they cannot do it fast enough to cut costs.
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Frank 8:56AM (12/05/2006)
8. The Bubble is Bursting Right before our eyes!!!!
God, where do I begin? First off this kind of hyperbole has been going on since Bush took office. (It's been going for 25+ years if you go read the "invest in gold coins" etc. websites.)
A few FACTS to confuse the self-induced panic:
Unemployment is at an all time low. Lower than the 90's. No they are not burger flipping jobs. Those are being filled by illegal, oops sorry, undocumented workers from our "friends" south of the border. Why? Because we have higher paying jobs to do and don't want to bother with dirty low paying jobs - at least that's what the politicians who don't want to secure the border tell us, right? So if jobs were not available or they were for only for crap wages we wouldn't need immigrants (legal or otherwise) to fill them right? Amazing what simple logic can do when you apply it.
The stock markets are doing well. Now remember the markets are NOT about now, they are are about 6 months or more from now. So they are feeling pretty good about things.
Florida, I live here so I think I have some insight about what's going on. Home insurance has risen here due to drubbing we took in the 2004 hurricane season. So? What happens if you get in an at fault accident? You're insurance goes up! Why? Are you going to get right into another accident? Probably not, unless you are new driver, but what if you've been driving for 10 years? You might not have another one for 10 more years. Too bad your rates are going up. So FL got hit buy a bunch of hurricanes. Are you telling me that an act of nature is going to flush an entire state's or better yet an entire countries economy down the toilet? Fl has lower unemployment that the national avg., lower taxes than many states and soon will become the 3rd most populated state after Ca and TX.
The media told us that this year was going to be a devastating hurricane season. After Katrina and Rita they said we were going to have the worst hurricane year ever. I mean it was doomsday, no gas, no food, no jobs, cats and dogs living together, you name it! Guess what happened? NOTHING! This isn't hard, go to Google or any other search site and look for articles predicting the end of life as we know it since the hurricanes were getting worse and "experts" were predicting more storms in 2006.
Foreclosures. I can't speak for CO but here in FL the foreclosures are the fault of the buyers and not the economy. Because of the rising prices but low rates many people ignored fundamental rules about buying homes and overextended themselves, took dubious mortgages (interest only loans, etc.) thinking that the boom would go on indefinatly (sounds just like automakers and SUV's).
Now something could happen to plunge us into recession, depression, anarchy, whatever. But something might ALWAYS happen. You live your life and plan based on the info you got, not the maybes.
Hey, an asteroid might hit the earth - so you better buy gold coins! :)
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Jordan Fogal 7:58AM (12/06/2006)
How Tort deform and arbitration can take your new car away... Are you sure your new home is protected? Are you sure your family, will not join the growing ranks of the homeless? Are you sure you understand arbitration and tort reform? Are you sure that the American Arbitration Association, hasn't stealthily already entered every phase of your life? Do you think you still have the right to a trial by a jury? Do you still think you can sue anyone who wrongs you? Do you still think frivolous lawsuits are those that happen to other people? Do you tire hearing any more about big business flagrantly squashing your rights? Do your eyes glaze over and your mind shut down when you hear all these things? Are you bored by this rhetoric? Is it all just to complicated for you to understand? I understand.
But, please read on. Because you have been majority deluded, confused and overwhelmed ... just so these things will slip right by unnoticed.
If you have a new home, new car, a car lease, a Visa, Master Card, American Express, Discover card, bank account, a cell phone, a storage room, electricity or even an exterminator. YOU have given up your seventh Amendment rights. You have given up your seventh amendment rights, you cannot sue any of these people. Sounds crazy doesn't it? Well, call any of them and ask if you have an arbitration clause in your contract with them ... because you do.
We are bombard daily, with harassing telemarketers, a mailbox full of trash offers and clutter ... our bills are stuffed with slick adds and offers. We don't have time to read all this junk..... And there in lies the problem. Big Business knows you don't. We are the new hurried, fast food, drive by cleaners generation, the multi taskers.... with more on our plates than we can handle. So big business has used your over burdened life style to their distinct advantage. You are screwed. Those little offers or things you think are privacy propaganda, in your bills, they aren't, they say "if you continue to use our services and do not pay off your account immediately you are now accepted the following terms.....You have now accepted arbitration ... and you didn't even read it.
Not one person in this country, is not bound by an arbitration clause and the shocking part of it ... most don't even know it. But you will, when you become one of the enlightened and destroyed. And believe me you do not want to be.
Ignorance is bliss ... and you can remain blissfully unaware of the dangers lurking, that threaten you, your family, your home and your livelihood. But when it hits you, it will be, a rude awakening ... like a two by four right between the eyes. AM I am trying to scare you? You bet I am. Because many of us do not have the time to watch fear factor, we live it daily. And, you may have just signed on for a guest appearance.
Take your home for instance. You made your down payment. You make your payments on time, you paid your property tax, you have homeowners insurance. Your investment is safe. You are living the American dream. Not so Kimosabie. You have rolled the dice with your future, put all your money on the pass line, and you weren't even aware you were gambling.
Example: You have a lovely new home, all decorated, a manicured lawn, a place for your stuff, and somewhere to come home to. But what happens if you start having problems with that new house? You just call your builder for repairs right? What if he doesn't answer your phone calls, faxes, or emails. What if the problem continues to worsen ... as you try to get him to live up to his moral, and ethical responsibilities. You say well I have a contract. And you do.
Now..... you will take the time to read, all that raft of papers that were shoved at you at closing. Uh oh...earnest money contract, arbitration clause. Closing papers arbitration clause...warranty papers arbitration clause.
Your foundation is cracking, your walls have lines that weren't there before, the carpet is damp and your house is taking on a musty smell. Your children begin to be ill and Fido's' hair falls out. What are you going to do? Your wife is frantic. She is calling neighbors, many experiencing the same sort of problems. Many do not want to admit it and "patch up and dump." Some will get by with it, until the new owner sues them. Yes, the new owner can sue you, just can't sue your big builder. Big business, little business that is how tort reform works.
And yes, you all paid to have your house inspected and had a relator and you called them all. You can start at the governor's office and they will refer you into a vortex of time-consuming, catch 22's that will make you crazy. You will end up lastly at the Heath department. They can try to help you find temporary housing ... soon, or maybe later....if you qualify and of course fill out the paper work.
You have now filled out paper work for every agency in the state. You stay up all night filling out this waste of time. Then bleary eyed drag yourself to your day job. No one understands. They think you are a real putz and offer you their lawyer's phone number...thinking you just are not smart enough to handle your own affairs. Little do they know...yet.
They think they are not in any danger...and that you just do not understand how to hand these things.
You call you insurance company...you know that agency that has you safe in their out stretched hands. That agency you pay those hefty premiums to each month. Guess what, substandard construction and builder defects are not covered items.
You are on the phone with your lawyer, he has looked over your papers, and informs you, YOU cannot sue your builder, you have signed an arbitration clause.
You say, well lets arbitrate ... it is faster and cheaper and my house is deteriorating as we speak, my investment is being destroyed. He really doesn't want the case, but will take it for a substantial upfront fee. He knows neither of you are going to be happy with the outcome, so he gets his upfront. Many of these legal eagles also have arbitration clauses in their own contracts. The contract you must sign to have legal representation. And you have to have a lawyer no matter what AAA arbitration tells you.
Your shower falls out. Black puffy balls are growing out of your carpet. Your windows are leaking, your hardwoods have begun to buckle, the children are sick, their eyes are all red, they have constant sore throats, you are having migraines you think from all the stress, your wife is crying, and her nose is bleeding ...and your cat just died. ( Am I Exaggerating ... No unfortunately, I am not.) I am just reliving part of what happened in our neighborhood, compliments of our greedy, unethical, unscrupulous builder. He sold us our homes after filing a lawsuit against the roofer and subcontractors with no disclosure. Yes, I said, he sued ... the big boys still have the right to sue, this only applies to you and me, the little guys.
Arbitration is great protection for the mass builder. First, most of you can't afford it and second if you can roll out 30 to 100,000 dollars it is still an unfair playing field. The builders team of high priced, sleazy prostitutes can make chopped liver of you in short order. They do this for a living. In our case, one of the builders' law partners, was/is also a AAA arbitrator. You want him to rule on your case?
Why didn't you repair your own house?
First you didn't think that was your responsibility, it was the builders. Second you had no idea the amount of damage and third, when you found out how many thousands of dollars it would cost ... you couldn't afford it.
You hadn't planned on the down payment, the new drapes, the new lawn mower and then repairs? TO A BRAND NEW HOUSE! Did you figure an extra 20 to 150 thousand for that in your budget? Like us, you probably bought a new home so repairs would not be an issue.
Well, guess what else you can't afford? You can't afford arbitration. Nobody tells you what it costs. The American Arbitration Association will not even give you a total cost, but if you can't afford it ... they will be more than happy to send you a form that authorizes them to just charge all their monstrous fees as they occur, on to your credit cards. How ever many it takes. Do I have you attention now? Do you think you have entered the twilight zone. Well, welcome to our world.
Homeless in Houston
Jordan Fogal Please google my name for more information or check out HADD.org or HOBB.org, tort deform
3003 Memorial Court #2407 Houston Texas 77007
7138029727
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Jordan Fogal 12:29AM (2/15/2007)
Let Chrysler prove they believe in their product more than foreign cars by removing the arbitration clause. Be the only car manufacturer that doesn't hide behind this consumer cursed clause.Or do none of the car dealers think thier cars willl hold up?
This article in Money Magazine is no different than what happenings everday, here in Houston. All over the US, big bad Builders continue to fleece the public and prosper enormously. The small bad builders takes advatage of a few, the big bad builder take advantage of entire subdivisions and no one does anything.
George Washington said: "Government is not reason, it is not eloquence, it is a force: like fire, a troublesome servant and a fearful Master, Never for a moment should it be left to irresponsible action." That Master has reduced us to subjects instead of citizens. Our story was in Washington Monthly, People and Mother Jones Magaines, nobody cared and nothing changed.
http://money.cnn.com/2007/02/13/magazines/moneymag/construction.moneymag/index.htm?postversion=2007021411
Dark side of the housing boom: Shoddy work
Steps you can take if you find yourself living in a poorly made home.
By Sarah Max, Money Magazine contributing writer
February 14 2007: 11:07 AM EST
(Money Magazine) -- Less than a year after moving into her new 2,100-square-foot house in Lenexa, Kans., Susan Sabin has strung up lemon lights in her front window.
The lemons, she says, go perfectly with the home's most prominent features: jammed doors, warped windows, bent pipes and cracked walls. "The house is essentially splitting in two," says Sabin.
At the peak of the recent housing boom, home buyers scooped up a million newly built homes every year while homeowners poured more than $200 billion into renovations. But now stories of shifting soil, leaky roofs, damaged stucco and other construction defects abound.
Though many builders have worked to improve the quality of their houses over the past decade, says Alan Mooney, president of Criterium Engineers, a national engineering firm, the building frenzy also opened the door for unskilled labor, unscrupulous contractors and untested products.
"When everyone is out there building as fast as they can, that does result in more defects," he says.
Contractor problems rank among the most common consumer complaints, according to the Better Business Bureau, and a recent Criterium Engineers study found that 17 percent of new residential construction projects inspected by the firm in 2006 had at least two significant problems.
If you've been gnashing your teeth over defects in your new or recently renovated home (and complaining to the builder hasn't solved them), it's probably cold comfort that you're not alone.
What do you do? A lawsuit is bound to be expensive and messy, if you can even get in front of a jury at all; many builder's contracts nowadays include a binding-arbitration clause that essentially waives your right to a jury trial.
Real estate flipper stung by slow market
Of course, your best bet is to catch the problem early, before you've paid for the work. But even after the job is long done, you still have a powerful tool on your side: the builder's need to protect his reputation.
Here's how to evaluate the likelihood that you'll be able to get your home repaired at minimal cost, and your plan of action.
Check your warranty
Your builder or remodeler likely gave you what's called an "express" warranty, which typically covers everything from cosmetic flaws to serious defects for a year (most common) to 10 years (pretty rare).
If the warranty names the defect you're complaining about, gather your documentation and ask your contractor to repair the damage at no additional charge. If your warranty has expired, you aren't necessarily out of luck.
Depending on the state you live in and the nature of the defect, your house may still be covered by a so-called implied warranty of habitability for another seven to 10 years. But it will be up to you to prove that the defects are so severe that they are a health or safety hazard.
Learn how to spot a real defect
Your next step is to figure out whether your problem is a bona fide defect under the terms of the warranty (or in the eyes of an arbitrator) or what home builders define as an acceptable imperfection.
"There is no such thing as a perfect house," says Mooney. "A lot of what people consider defects are really not defects."
According to the National Association of Home Builders' performance guidelines, small cracks in the interior concrete slab are normal; only those exceeding 3/16 of an inch should be repaired. Hammer marks or nail pops visible within six feet are acceptable, but marks you can see farther away are not.
You may not agree with these definitions, but it's tough to fight them. (You can order a copy of the NAHB's "Residential Construction Performance Guidelines" for $39.95 at BuilderBooks.com.)
Gather the evidence
Document problems with photos and detailed notes. Record everything from conversations with your builder or contractor to the exact time - and the weather conditions - on the day, say, your basement flooded.
"Make the assumption that this will end up in a significant dispute," says Mooney.
To bolster your case, you may need to pay for expert advice. An independent inspector or structural engineer will charge about $250 to $500 to give your house a full examination, along with a detailed report of the problems at the heart of your dispute.
Small projects that pay off big
After Ann and David Richardson's contractor put a two-story addition on their Kansas City house last year, it failed city inspections twice. The couple then hired an engineer who found that, among other problems, inadequate roof support was putting pressure on the walls and forcing them to bow.
"He said the walls were life-threateningly out of plumb," says David. Faced with this assessment, the contractor agreed to do the repair (though he later declared bankruptcy before he finished).
Find greater strength in numbers
If your housing development was constructed by a single builder, see if your neighbors are having similar complaints. "You'll often find that their houses are having the same problems as you," says Nancy Seats, president of Homeowners Against Deficient Dwellings, a group that helps homeowners fight back against construction defects.
After Pam and Jeff Cobbs noticed that the windows on their new home in Bend, Ore. leaked during rain storms, they teamed up with other neighbors who were having similar problems.
As it turned out, the windows and siding on more than 20 houses on the block had been installed improperly, causing water damage and, in some cases, mold.
Just a few months after the group complained, the builder sent in crews to remove all of the siding and trim, reinstall the windows, wrap the houses, put on brand new siding and repaint everything.
Know your state rules
If you aren't bound by a binding-arbitration agreement and you think you might have a case for a lawsuit, be aware that in recent years, 30 states have adopted "notice and opportunity to repair" laws, which require homeowners to give builders a chance to assess and remedy the problem before they go to court.
Typically, you have to submit a written complaint to the builder or contractor, who then has a certain amount of time to inspect the property and make repairs - usually up to 90 days.
Unfortunately, these laws, designed to protect builders, says Janet Ahmad, president of Home Owners for Better Building, don't obligate the builder to fix your problem (after an inspection, they may tell you that the fault is unrelated to their construction).
But your builder may patch up your home to avoid a lawsuit. If not, you are probably free to sue. To find out about your local "fix it" laws, start by calling your state attorney general's office.
If all else fails, get creative
When the first cracks began appearing in Susan Sabin's home shortly after she moved in last June, she contacted Pulte Homes, which sent in engineers and contractors to repair minor problems. But Sabin still believes they're ignoring major defects.
"They keep fixing the symptoms," she says. "I want them to fix the source of the problem."
So Sabin has strung up lemons and opened her house to anyone who wants to see the cracks. Soon after, her story made the local news.
Pulte, which says the problems with the home are a result of soil expansion underneath, has so far not agreed to rebuild Sabin's home from scratch. But it certainly is not ignoring her complaints.
"Structurally her home is as sound as any other home we've built in the city," says Todd Lipschutz, Pulte's division president in Kansas City. "We will make the necessary repairs."
Don't build a lemon
Know your builder. Make sure your builder is licensed with your state, and see what complaints have been filed with the attorney general's office. Get references, but remember that a builder isn't likely to refer someone who has complained. A better bet: Ask people in the neighborhood what they think of their house and how the builder handled any problems.
Question whether the builder is in over his head. Many builders don't have the equipment or the technical expertise to deal with very large projects. So if your home is the largest project the builder or contractor has ever done, proceed with caution. The same holds true if it's the company's first big housing development.
Have a lawyer read your contract. If it includes a binding-arbitration clause, you'll waive your right to a trial. Ideally, you want to strike this section or at least ask to name what arbitration firm will be used, says Nancy Seats, president of Homeowners Against Deficient Dwellings. Check that the warranty spells out what problems are covered.
Be a regular at the job site. Show up frequently while your house is in the process of being built or remodeled and ask questions. For a big project, consider hiring an inspector or an engineer to look things over.
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Jordan Fogal 12:31AM (2/15/2007)
Why don't chysler dealers prove they believe and stand behind their cars... by being the only Car Company that doesn't need or hide behind an arbitration clause.
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