Chrysler follows Hyundai lead, offers money-back guarantee on new vehicles
Struggling Detroit automaker Chrysler is taking a page from the Hyundai playbook and offering a money-back guarantee on some vehicles to appeal to buyers who may be turned off by Chrysler's current image.
The guarantee lasts for 60 days, Chrysler says, and the offer runs through the end of March.
Last year, Hyundai enjoyed a solid sales bump from its money-back promotion, which included a substantial media buy that struck a chord with recession-weary consumers. The ads told buyers that if they purchased a new Hyundai then "in the next year, you lose your income, we'll let you return it."
Even though Chrysler produces two of the three top-selling minivans -- after inventing the category in 1984 -- the market is now largely saturated, with sales down from a peak of 4 million minivans per year to a little more than 400,000 sold last year.
Like GM, Chrysler received a government bailout and went through bankruptcy. But the new Chrysler is 20 percent owned by Italy's Fiat, as opposed to GM, which is 61 percent owned by taxpayers. While GM has managed to hold onto its lead in U.S. market share, Chrysler has slipped from fifth to sixth place in the U.S. market, falling behind Nissan, according to January sales figures.
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February 11, 2010; 6:05 PM ET
Categories: The Ticker | Tags: Chrysler, Hyundai
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