Chrysler to offer new incentives as bankruptcy hurts sales

As Chrysler goes through Chapter 11 bankruptcy, it’s inevitable that the automaker’s sales will decline. The Auburn Hills automaker just ended its “Employee Pricing Plus Plus” program, which combined price reduction and cut-rate financing for qualified customers.

According to industry analyst Jessica Caldwell, the new incentives will rely heavily on cash incentives leading to big price reduction on new vehicle purchases.

Last month, Chrysler spent $4,288 per vehicle on incentives, making it the biggest spender on auto incentives in the U.S. market.

General Motors was the next highest spender with $4,063 spent on each sale.

– By: Kap Shah

Source: CNNMoney