In a bid to get inventory moving out of showrooms in a hurry, Chrysler has decided to offer a new incentive program that would double the value of the government’s cash-for-clunkers program.

Chrysler will offer $4,500 off (or 0 percent financing for 72 months) on most of its 2009 inventory – excluding the Dodge Challenger, Sprinter, Jeep Wrangler and all SRT products. The $4,500 incentive is even available on vehicles that do not meet the requirements for the cash-for-clunkers program, which was recently signed off on by President Obama.

Cash-for-Clunkers, or CARS (Car Allowance Rebate System) gives a $4,500 rebate on a new car when it gets 10 mpg or more better fuel mileage than the one traded in. The rebate is $3,500 on vehicles that get 4 to 9 mpg better or trucks that get 2 to 4 mpg better.

Chrysler, now under new leadership from Italian automaker Fiat is hoping the incentive will help sales rebound. Chrysler has been hit particularly hard this year with sales down 45.7 percent for the first six months.

When combined, these two offers mean a $17,090, Dodge Caliber SE could leave showrooms for as little as $8,090.

Chrysler’s “Double Ca$h for Your Old Car,” incentive starts tomorrow and runs through August.

[Source: Automotive News]

After passing through both the Senate and the House, the Cash-for-Guzzlers bill has been signed by President Obama. Known also as Cash-for-Clunkers, the official name of the legislation is CARS – the Car Allowance Rebate System.

Vehicles that are traded in must get 18 mpg or worse and be newer than 25 years old. For those who trade in their guzzler for a vehicle that gets (on average) 4 mpg more will receive a $3,500 voucher toward the new car, while those who choose a vehicle that gets 10 mpg more than their current auto will receive the full $4,500.

The rules are slightly different for trucks as the full $4,500 voucher will be available for gas guzzling trucks when traded in on a new truck that gets 5 mpg more.

The hope is that this new legislation will boost auto sales. Similar initiatives (but which target old cars and not gas guzzling ones) have been a huge success in countries like German.

The CARS act will take effect at the end of July.

Those looking for more info can visit the CARS website here:

http://www.cars.gov/

[Source: Automotive News via Autoblog]

Honda is warning that it may not meet its forecasted sales target for the all-new 2010 Insight hybrid and is citing both the worldwide recession and the low cost of gas as factors.

The Japanese automaker set an ambitious target of 200,000 units for the car’s first year, with almost half of those vehicle sales being in the U.S.

“Given some dramatic change in things, I don’t think we’ll get to 90,000. At 50,000 to 60,000, we will be just fine,” said Honda America VP John Mendel to Bloomberg. Despite this news Honda is not updating its forecast.

According to a Reuters report Honda is also concentrating on sales in Japan right now, as unfavorable exchange rates with the U.S. mean that profit margins are slim for cars sold in the U.S.

In Japan, the Insight was the best selling car in the month of April, but Honda lost that title in May to the 2010 Toyota Prius.

U.S. Insight sales may get a significant boost in the second half of 2009 if the Cash for Guzzlers legislation comes into effect. With an average fuel-economy rating of 41 mpg, the Insight will be an ideal candidate for those looking to get a deal as they trade in their high-mpg car or truck.

The Cash for Guzzlers bill gives as much at $4,500 for new vehicles that exceed the traded-in vehicles’ fuel-economy rating by 10 mpg. And at a starting price of just $19,800, there are a lot of 31 mpg cars that can be traded in to make that total just $14,300.

[Source: Automotive News]

Late yesterday the House of Representatives approved a bill that would offer consumers up to $4,500 to trade in their vehicle on a more fuel-efficient machine. The legislation must now go before the Senate before President Barack Obama is expected to give it final approval.

The bill passed with a strong majority of 298 to 119 and has also received the support of U.S. automakers.

Still, the CARS Act as it is being called is significantly different from the successful incentive programs used in Europe as its aim is not to sell cars, but to sell fuel efficient cars.

Vehicles that are traded in must get 18 mpg or worse. For those who trade in their guzzler for a vehicle that gets (on average) 4 mpg more will receive a $3,500 voucher toward the new car, while those who choose a vehicle that gets 10 mpg more than their current auto will receive the full $4,500.

Programs in Europe, like the incredibly successful one in Germany, target older cars, rather than gas guzzlers.

The CARS act is a temporary measure and is being funded through a $4 billion fund. It is also not retroactive.

If passed in the Senate and approved by President Obama, it is likely to go into effect 30 days afterward, which may mean consumers won’t be able to cash in on incentives until August 1st – a full six months after programs like the one in Germany were put into effect.

[Source: Automotive News and LeftLaneNews]