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]

The Democrats have proposed an incentive program to help-out potential car buyers and the U.S. auto industry. The only problem is, the gas-for-guzzlers legislation isn’t aimed at boosting car sales in the general sense.

The bill would provide up to $4,500 for people who trade in low mpg cars and trucks, to spend on a more fuel-efficient vehicle. Those who trade in a vehicle that gets less than 18 mpg for one that achieves more than 22mpg would get a $3,500 voucher, while $4,500 would be offered if the new vehicle gets 10 mpg (or more) than the vehicle being traded in.

All the terms of the bill are not yet available and it’s not yet clear if a vehicle would have to be a certain age to quality.

Michigan Democrat John Dingell said that if the bill was passed by Congress and approved by President Obama it could lead to as many as one million new car sales.

“This program will spur consumer demand for new vehicles, thereby injecting much-needed cash into our ailing domestic automakers,” Dingell said, adding that it would also lead to “meaningful reductions in energy use by American drivers.”

That final point does, however, seem to be more of the focus of the cash-for-guzzlers bill, which by both its name and content is aimed at promoting the sale not of vehicles in general but of fuel-efficient vehicles.

Earlier today we reported that the German government’s incentive program continues to be a huge success. That “scrappage” plan has produced near-record car sales in Germany by offering incentives to those who trade in old vehicles for new ones, regardless of where the vehicle is built or how much fuel it consumes.

[Source: Automotive News]

Ford Canada is asking the Canadian government to put in place a vehicle scrappage plan like the one currently in effect in Germany.

Ford Canada CEO David Mondragon told a parliamentary committee that Ford isn’t looking for a bailout and instead suggested a plan that would include $350 million ($270 million U.S.) for a scrappage plan. The way the plan would work would be for the government to give cash incentives for people who trade in their old cars and purchase new ones.

Mondragon’s suggested solution would include an incentive value of $3,500 ($2,700 U.S.), for consumers to use against the price of a new car when they traded in their old one. The deal would apply to any car 11-years-old or older.

With 35 percent of cars on Canadian roads over 11-years-old, this could account for as many as 100,000 car sales.

In Germany, the rule applies to cars 9-years-old or older and so far has been a resounding success. While February sales in the U.S. continued to tumble, car sales in Germany for the month were actually up  21 percent over the same period the year before.

[Source: The Globe and Mail]