CORRECTED UPDATE 1Chrysler to continue zero percent financing
(Corrects to attribute quotes throughout to executive Steven
Landry, not Michael Manley, as previously sent)
By Soyoung Kim
DETROIT, April 1 (Reuters) - Chrysler LLC said on Tuesday
it would continue to offer customers zero percent financing in
April and cut production if necessary as the embattled No. 3
U.S. automaker struggles with sluggish consumer demand.
Chrysler, which lost $1.6 billion in 2007, posted a 13
percent adjusted decline in March sales, hit by turbulent
credit markets that have restricted consumer financing of cars
and trucks and record gasoline prices.
Chrysler, the most aggressive of the major automakers in
discounting at its dealerships, said it would offer zero
percent financing for up to five years for 2008 models and six
years for remaining 2007 models. It also said it would reach
out to less credit-worthy borrowers.
“It’s not business as usual for customers. It requires
something extra for consumers to go out of their way to
consider a major purchase like a vehicle,” Steven Landry,
executive vice president for North American sales, said on a
conference call.
Landry said the credit markets have turned dramatically
tighter from a year ago, when banks had been far more
aggressive in competing to finance vehicles.
Chrysler has accelerated its restructuring efforts since
Cerberus Capital Management LP CBS.UL acquired an 80 percent
stake from Daimler AG (DAIGn.DE: Quote, Profile, Research) last summer. It has announced
plans to cut some vehicles and pare its dealership ranks, and
has offered buyouts to its 44,000 U.S. hourly workers.
It has set a target of getting between 8,500 and 10,000
U.S. factory workers to accept buyouts or early retirement this
year. Continued…
