With February sales of its Ram pickup down 4 percent and the Durango SUV off by 43 percent, Dodge has announced that March will be “National Truck Month.”

As part of the “National Truck Month” marketing campaign, Dodge will give buyers the option to get the Ram 1500 or Dodge Durango with the 5.7L HEMI V8 at no-extra-charge. The HEMI engine is normally a $1,930 option on the Dodge Ram 1500.

Back in January, we reported that Chrysler would would offer Chrysler, Dodge or Jeep trucks equipped with the HEMI for no additional charge. It appears Chrysler has decided to start with its Dodge products.

## Source: Dodge ##

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Ford has announced that it will place $500 in dealer cash on a slow-moving version of its new 2007 Edge crossover. The dealer cash is only available on the entry-level SE model. Ford will add a “little extra” to lesser-equipped Edges because they are taking longer to sell.

Top-of-the-line Edge models are experiencing higher-than-expected demand. High demand for 18-inch wheels is resulting in slow sales of the SE model, which is only available with 17-inch wheels. Sales of higher-end SEL and SEL Plus models are currently accounting for 80 percent of the Edge mix.

That is “far more than we projected,” said Ford spokesman Jim Cain. “So it’s a good problem to have.”

## Source: Automotive News ##

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Toyota quietly added its first ever incentives to its Prius hybrid in January. The varied incentives were available in seven of Toyota’s 12 U.S. sales regions, and included low lease payments (a $249 monthly lease contract in New York), cut-rate finance deals (3.9 percent for 36 months in Michigan, Ohio and Kentucky), or dealer cash.

Toyota wants to move 150,000 Prius hybrids this year, in comparison to 106,971 units in 2006 and 107,897 in 2005. Toyota spokesman Bill Kwong said the incentives were to help ensure that Toyota meets its sales target for the Prius. While the Prius had its best ever January sales (up 8.4 percent to 8,299 units), Toyota has a long way to go to reach 150,000 units.

Unless gas prices climb significantly, it is likely to continue to get harder for Toyota. On April 1, the federal tax credit for a Prius will drop to $787 — down from $3150 before October 2006. The federal tax credit for Toyota’s hybrids will be phased out completely on October 1.

## Source: AutoWeek ##

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Nissan Motor Co. COO Toshiyuki Shiga has said that the automaker will cut back on its factory incentives in 2007. With an increase in incentives more than any other automaker in 2006 (up 30% to an average of $2,314 per vehicle), Nissan will be willing to forego some sales to increase profit.

With Nissan’s new Altima, Sentra and Versa models doing well without large incentives, Nissan is likely to look at cutting back its incentives on its trucks and SUVs. However, Nissan’s full-size Titan faces a signficant challenge with Toyota’s new Tundra hitting dealers soon. There is a debate if the new Tundra will jump start the entire full-size truck segment. With truck buyers a loyal bunch, it the Tundra doesn’t spur sales for the segment, expect many of Toyota’s sales to come at Nissan’s expenses.

## Source: Automotive News ##

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Want a HEMI? Starting later this year, it will be much cheaper to answer ‘yes’ to that question. The Chrysler Group will launch a incentive program in March that will offer consumers Chrysler, Dodge or Jeep trucks equipped with the HEMI for no additional charge, according to The Detroit News. The company hopes the campaign will spark interest in the V8s, which recent reports say are experiencing a drop in demand.

“It’s something that GM and Ford don’t have,” said Murphy. “It’s going to be a conquest program for us.”

Starting in April, Chrysler will offer DVD entertainment systems at no additional charge on every minivan it sells, George Murphy, Chrysler’s vice president of marketing, told dealers.

The HEMI option typically costs an extra $1,700, while the DVD entertainment system is a nearly $1,000 option

While this incentive program is probably a better campaign than cash incentives, it could devalue the HEMI brand if everyone has one.

## Source: The Detroit News ##

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Despite offering the highest incentives of any major U.S. automaker in November, Ford’s incentives failed to lead to higher sales. Now Ford is adding another $1,000 in year-end bonus cash on 12 more models, including the Mustang coupe and Explorer SUV. The automaker is now offering the bonus cash on 19 Ford and Mercury models, which can be used on top of existing rebates or interest-rate deals.

Ford spent $4,231 on average to sell its cars and trucks in November — up 50 percent from last year — sales were down 10.6 percent. The Chrysler Group averaged $3,735 in incentives, with GM at $3,011. An bigger issue for Ford, is its 93-day supply of unsold vehicles, compared to 90 days at GM and 76 days at the Chrysler Group.

Ford’s problems are most pronounced in the profitable truck segment. Despite increasing incentive spending 51 percent in November, demand for Ford trucks was of 51 percent from November 2005. In comparision GM spent 13 percent less in incentives on trucks, but sales were up 16 percent, largely driven by the automaker’s new GMT900 trucks. The slumping truck segment has affected most automakers, with Toyota spending 25 percent more on truck incentives in November but 17 percent less on cars, and Chrysler spending 8 percent more on trucks and 24 percent less on cars.

## Source: The Detroit News ##

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Ford kicked off its Year-End Event sales campaign today. Following General Motors’ launch of its Red Tag Event, Ford will show off its new 2007 models and offer cash rebates to a handful of models. The Year-End Event deals will run through Jan. 2.

The sales event adds a $1,000 cash rebate to 2007 models of the Fusion, F-series Super Duty pickup, Escape SUV, Five Hundred sedan and Freestyle crossover. The $1,000 cash rebate also applies to the 2006 Ford Five Hundred and Freestyle. The $1,000 bonus is on top of any existing rebates, which pushes total discounts as high as $3,000 on some models.

Ford’s 0 percent financing for 60 months continues on certain remaining 2006 models.

Full details after the jump.

## Source: Ford ##

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On Saturday, Nov. 18, General Motors will begin its Red Tag Event, the automaker’s year-end clearance sale. The Red Tag Event will run through Jan. 2 and not include Cadillac, Hummer and Saab. The Chevrolet Corvette and Pontiac Solstice also are not included in the sales event. The sale is similar to the promotion GM ran at the end of last year.

“What a consumer will see is a Red Tag hanging from the mirrors,” spokesman John McDonald said. “It will list the MSRP and then the price the consumer will pay after the incentives. The dealer decides how much the discount will be.”

The program covers 2006 and 2007 models and the discount could be up to $2,000 per vehicle. The program also includes most existing incentives on vehicles, which could mean more than $2,000 of incentives.

GM will advertise the sale aggressively in print and on TV, radio and the Internet, using the same tag line as last year’s promotion: “See some red, save some green.”

## Source: Automotive News ##

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Ford Motor’s new crossovers, the Ford Edge and Lincoln MKX, will be launched next month without any cash rebates, according to reports in Automotive News. Ford spokesman Jim Cain said Ford’s new pricing strategy is to price new vehicles “much closer to their expected transaction prices.” However, Ford will be offering special financing packages as low as 1.9 percent for three years, 2.9 percent for four, and 3.9 percent for five.

Last month, Ford announced the 2007 Edge would have a starting price of $25,995 for the front-wheel drive model and $27,645 for all-wheel drive. Ford also said that Lincoln MKX would have a starting price of $34,795 for the front-wheel drive version and $36,445 for an all-wheel drive model.

## Source: Automotive News ##

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Despite the extremely strong start for its Dodge Caliber sibling, the Jeep Compass, the brand’s first-ever car-based crossover, is not sharing the Caliber’s success, and may even be slowing further, according to AutoWeek. One reason for the sluggish sales could be heavy incentives on other Jeep vehicles, primarily the Liberty. The incentives appear to getting customers to upgrade to the more capable Liberty.

While incentives could be playing their part, some industry analyst say that the slow sales of the Compass are based more on the softroader’s attribute (or lack thereof), including, questionable looks and driving experience, and most of all that is doesn’t fit in a Jeep showroom.

One sign of the sales slump, while the Compass’ average transaction prices have dropped from $22,467 to $21,534. transaction prices for the hot-selling Caliber have risen from $17,059 at its launch in March to $18,276 as of Sept. 24.

## Source: AutoWeek ##

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With the Energy Policy Act of 2005, the IRS has provided buyers of hybrid vehicles with a tax credit to encourage the purchase of fuel-efficient hybrid-electric vehicles, which can help to reduce air pollution. The amount of the tax credit is based on the number of hybrids a manufacturer has sold within a specified period. The full tax credit only being available for purchases completed through the calendar quarter after the quarter in which the manufacturer reaches cumulative sales of 60,000 hybrid vehicles. The tax credit is then reduced by one-half for the next six months; by another one-half for the next six months; and then phased out completely.

When Toyota Motor became the first automaker to break the 60,000 hybrid threshold in May 2006, the clock started ticking to September 30, 2006, when the tax credits would reduced.

Starting yesterday (October 1, 2006), buyer of Toyota and Lexus hybrids are, at most, eligible for the following credits:

• Toyota Prius: $1,575
• Toyota Camry Hybrid: $1,300
• Toyota Highlander Hybrid: $1,300
• Lexus RX 400h: $1,100
• Lexus GS 450h: $775

Beginning on April 1st, 2007 (continuing until September 30, 2007) tax credit for Toyota and Lexus hybrids drops again:

• Prius: $787.50
• Camry Hybrid: $650
• Highlander Hybrid: $650
• Lexus RX 400h: $550
• Lexus GS 450h: $387.50

After September 30, 2007, Toyota and Lexus hybrids will no longer qualify for IRS credits.

## Source: Toyota ##

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Chrysler has reportedly launched new incentives to help jump start sales of its 2007 model year pickups and SUVs, according to The Detroit Free Press. The automaker is offering between $500 and $2,500 on all vans, Dodge Ram and Dakota, Jeep Grand Cherokee (except the SRT8) and Commander, and Chrysler Pacifica. The automaker will also offer lease pull-ahead offers and $500 bonus cash on select 2007 models.

## Source: The Detroit Free Press ##

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The Chrysler Group has extended its zero-percent financing program to sub-prime candidates. Following the lead of Ford, Chrysler is offering its no-interest deals to customers that have less-than-perfect credit scores. Chrysler started the zero-percent financing for up to 72 months on Sept 1, but added the relaxed credit standards this past weekend. The promotion runs through Oct. 2.

The zero-percent financing options are available for up to 72 months on the 2006 Jeep Commander and Grand Cherokee, the Dodge Durango SUVs and Chrysler’s family of minivans. In addition, Chrysler is offering 1.9-percent financing for 60 months and 3.9-percent financing for 72 months on light-and heavy-duty Dodge Ram pickups.

Dealers have said that the change has already resulted in sales to buyers who would not have qualified last week.

## Source: The Detroit News ##

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The Chrysler Group will end its employee discount program on Friday and replace it with a six-year zero-percent financing offer, according to the Detroit News. The special financing offer will be available on all 2006 models.

Chrysler’s offer follows the lead of Ford Motor, which launched a similar zero percent program last week on most of its remaining 2006 Ford, Mercury and Lincoln cars and trucks. Ford’s deal runs through Tuesday. Earlier this week, General Motors announced additional cash rebates of $500 to $1,500 on many vehicles for the Labor Day weekend only. Chrysler’s offer will run the longest, ending September 30th.

The automaker will launch a new program at the end of this program. “We’re going to have a new incentive strategy, but I’m not at liberty to discuss the details,” said Chrysler spokesman Kevin McCormick.

## Source: The Detroit News ##

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General Motors announced today it will offer $500 to $1,500 in bonus cash, until Sept. 5, on many of its 2006 and 2007 models. The offer is in addition to the automaker’s previously announced low-interest loan and customer cash offers, but does not apply to its hottest selling models, including the Pontiac Solstice; Saturn Sky, Aura and VUE Green Line; Chevrolet Corvette; the 2007 GMC Yukon/Yukon XL Denali; Hummer H1; and 2007 Cadillac Escalade.

GM is offering $500 in bonus cash on many of its cars, $1,000 on many of its pickups and car-based sport utility vehicles, and $1,500 on some of its truck-based SUVs.

GM said that it is backing away from its value pricing strategy to bring transaction prices closer to the sticker prices but the incentives are just part of the company’s annual Labor Day sale.

## Source: The Detroit Free Press ##

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