DETROIT -- Chrysler Group said today it trimmed incentives on five models because dealers were running short of vehicles in the wake of the cash-for-clunkers frenzy.
The company also has dropped its Double CA$H for Your Old Car advertising message because of ongoing confusion over whether the government incentive program will continue.
The new advertising campaign will be called Summer Clearance. Chrysler had planned to keep the double cash advertising in place through the end of August, but reports that bargain-hunting consumers already had exhausted the $1 billion set aside by the Obama administration forced Chrysler to adjust its incentives and change its marketing.
Our incentives are staying the same, but were focusing around product if cash for clunkers doesnt stay, said Chrysler spokeswoman Kathy Graham.
Chrysler will continue offering consumers cash rebates or low-rate financing for their trade-ins.
Chrysler incentive reductions, effective Tuesday:
Chrysler Sebring sedan: $4,500 consumer cash to $3,500 consumer cash.
Jeep Liberty: $3,500 consumer cash to $3,000 bonus cash (to dealers).
Dodge Avenger: $4,500 consumer cash to $3,500 consumer cash
Dodge Nitro: $3,500 consumer cash to $3,000 bonus cash.
With its factories closed two months during bankruptcy, the days supply of most Chrysler vehicles has plunged.
Overall, Chrysler dealers had a 40-day supply at the end of July compared with 71 days at the end of June. Chrysler could not give day-supply numbers for individual vehicles, but dealers reported sales of smaller cars such as the Jeep Patriot and Dodge Caliber shot up during the promotion, which Chrysler announced July 22.
Kathy Graham, Chrysler spokeswoman, said the cash-for-clunkers program had sped up Chryslers efforts to reduce inventory.
The 40-day supply of vehicles is right where we want to be, Graham said. Weve said all along that 45 to 60 days supply is optimal. Cash for clunkers helped us reach that goal sooner than we expected.
Now that our plants are back up and running, were where we want to be with inventory going forward as a company. So were building to fill orders and replenish dealer orders.