The domestic automakers had a tough month in March, and Chrysler had the toughest time of all. Sales fell 19.4 percent, which contributed to a 15.5 percent drop in sales for the first quarter.
Banks aren't as willing to offer cut-rate financing lately, so Chrysler decided to continue the zero percent financing offer on new vehicles. Any remaining 2007 vehicles can be paid off in six years with no interest while buyers of 2008 models have five years to repay the purchase price. Chrysler also plans to offer loans to buyers with less than perfect credit.
Chrysler will also cut back on production to prevent building a huge inventory of vehicles that aren't selling. This has been a problem for Chrysler lately and the company is fighting to keep inventory at a reasonable level following the new UAW contract and the buyout offers for hourly workers. Sadly, Chrysler has no plans to kill off the Jeep Compass in the near future to help alleviate inventory and production levels.
Source: Automotive News (subscription required)