Network News

X My Profile
View More Activity
2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

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.

Chrysler is offering the deal on the Dodge Caravan and the Chrysler Town & Country minivans, if drivers trade in vehicles from other automakers and hold onto their new Chrysler vehicle for 30 days.

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.

Follow me on Twitter at @theticker

By Frank Ahrens  |  February 11, 2010; 6:05 PM ET
Categories:  The Ticker  | Tags: Chrysler, Hyundai  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Stocks shake off early blues, stage strong rally
Next: February consumer confidence drops

Comments

Hmmm...thats nice I guess but currently they have nothing I want. I have owned a couple of chrylser cars. Did they hold up? Yes. Was I happy with them? Very much so. But today they simply have nothing to offer me. Now they do have some great looking concept cars, but when will they build them?? They need something definate by 2011 to survive I think, otherwise they are fading into the background. That being said I still would buy a Chrysler before buying a Toyota.

Posted by: matrox | February 11, 2010 7:36 PM | Report abuse

Why not, it's our money after all..

Posted by: wewintheylose | February 11, 2010 8:14 PM | Report abuse

I don't see how any of this matters to most any car company -- Hyundai has clearly emulated Acura -- note the prev generation of Sonata -- and now Lexus with the current generation of Sonata and SUVs. And, if you've driven them? I don't own one yet, but near-lexus at kia prices. Game over. Why would you spend $5K more for a domestic that, yes, may have the quality now, but doesn't have the feel of a true modern vehicle and doesn't drive like a boat --> looking at YOU Chevy Malibu. GM doesn't make sense. Chrysler doesn't make sense. Ford has a few models, but if, say, Chrysler fails and sells their truck line to Hyundai, game over. Because China hasn't really entered the market yet, and when THAT happens, Hyundai will become a korean lexus as a niche player too.

Posted by: NovaMike | February 11, 2010 8:14 PM | Report abuse

Drive a hooptie like me or be ridiculed, oh wait I am ridiculed since I do drive a hooptie ride.

Posted by: foxxmacpryor | February 11, 2010 8:17 PM | Report abuse

Other than the Cummins engine in the diesel trucks, there is nothing I would consider buying from Chrylser. Again, I just want the engine. The rest of the truck doesn't compare to Ford or Chevy. We should let Chrysler go out of business.

Posted by: neil64 | February 11, 2010 8:52 PM | Report abuse

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company