Dodge Journey mailing, deals sent

Dodge has arranged heavy publicity for the neglected but popular Dodge Journey, with over 250,000 targeted letters arriving in early November. The package includes postcards and various offers, including a $25 debit card for a test drive, and cash back for both Chrysler owners and defectors from other brands. People who get the offer can forward it to friends who can then register for a $500 cash allowance.  The promotion is good through the end of January, 2010.

The mailing is targeting current owners, owners of Saturn and Pontiac vehicles, and owners of key competitor vehicles.

Chrysler brands split for 2010

The three Chrysler brands are getting further apart for 2010, starting with different incentive plans. At Dodge, prices have been cut, which the division hopes will raise demand without the need for strenuous rebates. Dodge is providing up to $2,000 in rebates on 2010 models, through November 2.

At Chrysler, buyers can choose between a combination of 0% financing (on three-year or shorter loans) plus a $1,000 rebate, or a total $2,000 rebate; while at Jeep, buyers can get the 0% financing for three years, or up to $3,000 in rebates plus a thousand-dollar owner loyalty rebate. These all apply to 2010 models only; for 2009 models, all Chrysler brands are providing 0% financing for up to 6 years, or up to $4,500 in rebates.

While Chrysler sales fell sharply for September, the company had slashed its advertising and CEO Sergio Marchionne said the low sales should not be considered an indicator of future results, indicating that the company was simply regrouping. Many dealers were short on key vehicles, and those with the sharpest sales declines tended to be the ones that sold best during the government “clunkers” program.

Chrysler returns to leasing

Chrysler Group LLC today announced it will offer leasing for U.S. customers on all 2010 model year Chrysler, Jeep and Dodge vehicles through GMAC Financial Services.

“We are pleased to re-enter the leasing market so we can offer customers the opportunity to lease vehicles at rates competitive with the marketplace,” said Peter Fong, President and Chief Executive Officer–Chrysler Brand and Lead Executive for the Sales Organization, Chrysler Group LLC. “Our ability to offer additional financing options will benefit consumers who have long been fans of leasing and appreciate the flexibility this financing option gives them.”

Effective Sept. 17, 2009, Chrysler, Jeep and Dodge will offer leasing options for all 2010 model year vehicles in the United States. Featured vehicles with special lease rates through Sept. 30, 2009 are: Chrysler Town & Country,
Dodge Grand Caravan, Ram 1500 and Journey, Jeep Wrangler and Liberty

Chrysler, Jeep and Dodge also offer the following incentives, which are valid through Sept. 30, 2009:
2009 Model Year Vehicles: Zero-percent financing for up to 72 months through GMAC Financial Services or up to $4,500 Consumer Cash on select 2009 model year Chrysler, Jeep and Dodge vehicles.

2010 Model Year Vehicles: Limited Consumer Cash of up to $3,000 or attractive financing rates through GMAC Financial Services are available on selected models.

Current Chrysler Group vehicle owners are also eligible for $1,000 Owner Loyalty Bonus Cash available to use towards the purchase of select 2009 model year vehicles or the purchase or lease of select 2010 model year vehicles.

Cash for Clunkers to end Monday night

If you still have a clunker, you had better make a deal quickly; the U.S. Department of Transportation’s Car Allowance Rebate System program, better known as “Cash for Clunkers” will end Monday, August 24, at 8:00 PM.

According to Transportation Secretary Ray LaHood, the decision to pull the plug on the popular program came after the department determined the program has nearly exhausted its $3 billion in funding. As of today, the Department has $1.9 billion worth of applications. As Congress is on break until Labor Day, there would be no opportunity to obtain additional funding in a timely manner.

Dave McCurdy, CEO of the Alliance of Automobile Manufacturers, says the program has been a success.

“In less than six weeks, the CARS program will have generated close to 750,000 new vehicle sales,” McCurdy said in a statement. “With an average fuel economy increase of almost 10 mpg, the program has achieved its goals of stimulating the economy, enhancing energy security and reducing greenhouse gas emissions.”

NADA asks government to suspend Cash for Clunkers program

The National Automobile Dealers Association has asked the Department of Transportation to suspend the Car Allowance Rebate Program immediately. The dealer group says data from an informal survey of its members indicates there are already enough claims in process to exhaust the $3 billion fund and it does not want dealers to be left with unpaid claims when they have already extended the credit to a customer.

“We asked them to put a halt to the program — I think we said ‘very soon’ — but a suspension at midnight tonight would make sense,” John McEleney, NADA chairman said in an interview today. “Our survey opened the eyes of the Transportation Department.”

Chrysler replaces lifetime warranty

Chrysler is dropping its lifetime warranty from 2010 models, though it will remain on 2009 models. Instead, the company will provide a free 5 year, 100,000 mile powertrain warranty, which, instead of being transferable, is assigned to the car itself, so that anyone who buys a used 2010 Chrysler, Dodge, or Jeep second-hand, third-hand, etc., can get service without having to transfer the warranty.

The new 5/100 plan has no deductible. It is accompanied by the usual basic 3/36 warranty, 5/100 corrosion, coverage, and extendeded Federal emissions warranty.

Exceptions to the new warranty plan are the Sprinter (assembled by Freightliner from Mercedes kits), diesel-powered trucks, Sterling trucks, company car vehicles, Volkswagen Routan, and Mitsubishi Raider.

SRT vehicles and fleet vehicles (including police, postal, ambulance, and taxi) were not covered by the lifetime powertrain warranty, but will be covered by 5/100.

The change may have been spurred by the costs of paperwork and tracking of older vehicles with the lifetime warranty, and by customers’ cynicism about the lifetime plan.

Caliber falls from top ten in Cash for Clunkers sales

The Dodge Caliber dropped out of the top ten bestselling vehicles in the latest snapshot of the Car Allowance Rebate System (CARS) results. Chrysler Group’s share of sales also dropped, from 10.6 percent to 9.1 percent of transactions.

The Chevrolet Cobalt also lost its top ten position, leaving Ford as the only U.S. automaker represented in the Cash for Clunkers list.

The most recent data show the Japanese automakers are now taking a larger share of the “Clunkers” pie. Toyota, with 18.9 percent of sales, has replaced General Motors as the top brand among claims processed to date. GM’s share dropped from 18.7 percent of sales to 17.6 percent. Ford’s share is now 15.4 percent and Chrysler Group’s share dropped from 10.6 percent on August 5 to 9.1 percent in the latest figures. The combined share for the U.S. automakers dropped from 47 percent of sales to 42.1 percent, while the Japanese automakers saw their share rise to 39.2 percent.

As of today, dealers have submitted claims for over $1.5 billion, more than half the total amount allotted for the program. Congress will have to decide whether to add more funds to the program, originally intended to run through November 1, when it reconvenes after Labor Day.

Top Ten CARS vehicles as of August 15:
Toyota Corolla
Honda Civic
Ford Focus
Toyota Camry
Toyota Prius
Hyundai Elantra
Ford Escape
Honda Fit
Nissan Versa
Honda CR-V