Chrysler May Also Give Family and Friends Discount

FRANKFURT, June 29, 2005; Reuters reported that the Detroit News said that DaimlerChrysler is ready to match General Motors' offer giving all U.S. car buyers the same discounts its staff get if GM extends the promotion beyond next week.

Citing sources familiar with the matter, Chrysler had told its national dealer council on Tuesday it could make a similar offer as early as July 6 should GM extend its promotion through next month.

GM, the world's top carmaker, has seen customer traffic soar since it announced the offer on June 1. The offer is due to end on July 5 but GM's North American marketing chief has been quoted as saying it might be prolonged.

"I can tell you that we're looking at everything right now," Chrysler spokesman Jason Vines was quoted as telling the newspaper. "You've got to give it to GM because they repackaged what they already had and cut through the clutter."

Chrysler officials were not immediately available to comment on the report.

The GM offer's success -- expected to be confirmed by June U.S. sales numbers on Friday -- is forcing rivals to take a look at how to defend share in the world's biggest car market.

In a note to clients Dresdner Kleinwort Wasserstein estimated that if Chrysler were to go ahead with a new incentive programme it could add a further discount of $600 to $800 per vehicle to the $3,861 it estimated Chrysler already offers.