Because new car sales are slumping, Chrysler is adding some hot add-ons to most new cars it sells.
Popular cars like the Dodge Charger are excluded.
Daimler Chrysler’s Chrysler division on Thursday said it was raising its customer incentives and offering buyers more than $2,000 worth of free gasoline in a bid to combat slumping U.S. auto sales.
Chrysler spokesman Kevin McCormick said that starting next Monday the automaker would offer U.S. car buyers a debit card with $2,367 in credit to use for the purchase of gasoline.
The card will be given to customers who purchase most of the company’s 2005 and 2006 model year vehicles. Hot-selling models including the Chrysler 300, the Dodge Charger and Dodge Magnum are not included, however.
McCormick said Chrysler would also begin offering car buyers two years of free scheduled maintenance and an extended five-year, or 60,000-mile warranty.
It remains to be seen if these incentives are enough to push new car sales back into the
When Daewoo folded years ago, many customers were left with cars they were still financing that could not be fixed when they stalled because parts were not available. Warranty’s purchased from the manufacturer were voided and the buyers were left to bear the burden of a car that no longer had a parent company to back it.
A recent survey suggests buyers won’t enter into a similar situation this year.
There’s been talk in automotive circles that General Motors may be on the road to bankruptcy court. But GM executives may do a U-turn after reading the results of a new study that finds car buyers wary of buying a car from a bankrupt company.
The survey by Directions Research, Inc., found that only 26 percent of respondents said they would buy or lease a car manufactured by a company that was in bankruptcy.
GM will probably not collapse, but bankruptcy might be an option they choose. This survey may discourage that once attractive alternative.
Our news of late has been doom and gloom. With strikes, low sales, and dismal growth, the auto industry doesn’t have much to celebrate.
General Motors Corp. Chairman and CEO Rick Wagoner sent a memo to workers in November assuring them bankruptcy isn’t an option for the world’s largest automaker, but concerns about GM’s financial health persist. The company recently announced a plan to cut 30,000 jobs and close 12 facilities by 2008. Next year, the automaker, which has a Fort Wayne plant, plans to sell a majority stake in its profitable finance arm, GMAC, to raise cash.
Ford Motor Co. is expected to announce its own restructuring plan in January. The nation’s No. 2 automaker had its share of turmoil this year, including an expensive bailout for its former parts division, Visteon Corp.
But, analysts say things are looking better for the coming year.
Despite the gloom in Detroit, 2005 will end on a fairly high note. Analysts are predicting full-year sales of around 17 million vehicles, a healthy pace that has held steady over the past 6 years.
Looking at two, very opposite, popular market trends, the next few years’ car models seem to be offering either alternative fuel technology or massive horsepower.
This article, from Auto Reviews Online, looks at the North America International Auto Show this year and offers some fascinating highlights from the models showcased:
Mitsubishi showed production models of the Raider and Eclipse Concept cars of last year. The Raider was an "imported brand’s" variation of the Dodge Dakota pick up truck, on which it is based. The styling is more Asian influenced on the exterior and the interior is more car-like than the rugged truck like interior of the Dakota. Factor in the incredible warranty advantage Mitsubishi has on the Dakota, the Raider is sure to attract attention in the showrooms later this year. The Raider will be offered with V6 and V8 power plants. The Eclipse was shown as a gas/electric hybrid at last years show, however it has been introduced as a gas powered model offered with 2 engine choices, the 162HP 2.4L 4 cylinder and 3.8L 260HP V6 motors. The styling is quite bold and should appeal to younger buyers who identify with its street rod persona.
For heavy car buffs, this is a must read. It will be interesting to see whether the market goes the way of the environmentalist or the heavy-duty horsepower route.
Dealers hope you aren’t concerned enough to complain about their computer overrides, disallowing independent repair shops from repairing vehicles.
Now, two or three times per month, his computerized diagnostic equipment shows unknown codes when hooked up to an auto with a problem.
"The scanner gets codes, but no translation comes up, meaning the information hasn’t been released," Danneman said.
Manufacturers aren’t allowing shops access to some of the information they need to repair today’s computerized automobiles. They aren’t allowing independent’s to include the information in diagnostic tools that can be used on many different types of vehicles.
An automobile warranty can vary tremendously depending upon your warranty coverage inclusions. This is especially true for the amount you will spend to have the service. Similarly to other types of insurances, your auto warranty has a deductible. Many top of the line warranty providers are going to give you top of the line coverage, but you will warranty coveragedoubtless pay more, with the exception of some providers, many times an aftermarket warranty.
The coverage you invest in will either save you thousands but afford you a sizeable payout at time of service, or can save you some will charging you more than they should be. Investigate thoroughly the deductible expectation of an extended warranty. Do you pay to speak to a mechanic or to have the full repair done?
Some warranties that expect payment per visit may get more from your wallet the more you visit the shop. A deductible based upon final repair will be charged after all of the details are finished. Some warranty groups also offer warranties with no deductible. This may be the best option for a car owner who expects frequent visits to the shop. There are many options when choosing a car warranty based upon deductible. Consider your car needs and your prospective wear and tear and then you will have a basis for choosing the type of deductible offered.
Your automobile warranty should provide you with the specific coverage you need. A warranty with loopholes can add stress to rather than relief the intensity of a break-down, unexpected repair, or a minor collision. Car trouble that is unanticipated is difficult enough without showing up to the mechanic with a disappointing amount of coverage.
warranty coverageFind out if your warranty covers all of the incidents that you desire. Warranties can vary greatly in their specific coverage, so once again tackle that fine print to ensure that what you are buying is what you will be offered should the situation occur. Extended warranties can be deceiving if expected to cover all that a regular warranty doesn’t.
Extended warranties are meant to provide extra security for travelers who would like the peace of mind of having them, but it doesn’t mean all accidents or incidents are going to be completely covered. Ask a warranty sales person about all of the inclusions in the warranty to make an educated decision about your vehicle coverage.
Car owners who intend to eventually sell, or even have the slightest inclination towards selling should consider the fact that an automobile warranty included in the sale is an excellent benefit for the buyer. As you drive your vehicle with the peace of mind that only warranty coverage can bring, realize that a car buyer is likely to desire the same comfort when driving the automobile they’ve purchased. warranty valueYou can increase the value of the car by included those simple words “warranty coverage” in your advertising.
Even a car buyer who is looking into purchasing a warranty for their new vehicle should consider that down the road the warranty will count for sale value. The investments you make to assure coverage on your car now will become an added incentive later that will return benefits.
Indiana’s Subaru plant may soon produce Toyotas, including their hybrids. Beginning as early as 2007, the Indiana plant may ramp up their production to more 50% their current output.
Toyota purchased 8.7% of Subaru parent Fuji Heavy Industries Ltd. from General Motors Corp. in October reportedly for $315 million, giving Toyota access to the Lafayette plant.
There reportedly are five to six models, including hybrids, being considered for production at Lafayette. Subaru currently builds the B9 Tribeca, Baja, Legacy and Outback vehicles in Indiana.
In the continuation to unfold the various shapes and sizes that auto warranties come in, a limiting factor of some coverage companies is the location allowance, or lack thereof. It’s safe to say that most Americans do not have a specific repair shop over a long period of time. Even the most consistent customers to a particular maintenance shop are forced to find a new location at some point due to a move, a closing, or possibly a new and higher maintenance vehicle. auto repairThere are many reasons a customer would need to switch around their auto repair preferences, but the bottom line is if your warranty allows for it.
Some warranties bind the client to particular locations for auto repair. This can be a hassle on scheduling, travel distance, and the repair shop may tend to cost more than the local competition. Perhaps if you’re partial to a particular repair shop you won’t need to investigate too deeply any limitations an auto warranty requires for the place of repair. But if you’re in the market for an automobile warranty that does not limit on maintenance locations, be sure to read the fine print.