Ford, Chrysler sweeten deals to clear lots

Five-year no- or low-interest loans will be offered on some 2006 models to free up room for 2007s.

Josee Valcourt / The Detroit News - - Ford Motor Co. and DaimlerChrysler AG's Chrysler Group are extending five-year no-interest and low rate-loan offers on some 2006 models to clear out old inventories and make way for 2007 models.

Nearly 30 percent of vehicles sitting on Ford dealer lots are 2006 models, while older inventory accounts for 45 percent of the cars and trucks on Chrysler, Dodge and Jeep lots.

General Motors Corp. did not stretch its current discount program, which already runs through Jan. 2.

The Detroit-based automaker is offering free financing on some 2006 models, or bonus cash ranging from $1,000 to $6,500.

The sweeter offers from Ford and Chrysler come as combined sales for Detroit's Big Three are down 8.6 percent for the year, although Ford and GM reported sales gains in October.

All three companies are also cutting production to try to keep inventories more in line with demand.

Sales gains

Last month, Chrysler was the only Detroit manufacturer to report a sales decline. Ford was up 8.8 percent and GM sales increased 16.8 percent.

But the spikes came in comparison to weak results in October last year, in the wake of Hurricane Katrina and sluggish demand following big summer discount sales.

Collectively, the domestic automakers gained 1.4 percentage points of U.S. market share in October, climbing to 53.8 percent. But their year-to-date market share fell three points to 54.1 percent.

To further reduce its older inventory, Dearborn-based Ford will offer zero-percent financing for five years on all 2006 model-year cars, SUVs, and Ford F-150, Super Duty and Rangers through November. The discount became available last month.

The automaker is also offering 1.9 percent financing on 2006 Fusion sedans and 2.9 percent on Mustang sports cars.

Ford is also offering 2.9 percent financing for five years on 2007 mode F-Series pickups, including Super Duty models, and the Ranger pickup, or customer cash of up to $2,500.

Auburn Hills-based Chrysler's zero-percent financing offer on certain 2006 model Chrysler, Dodge and Jeep vehicles, scheduled to end on Oct. 31, will be available until Monday.

Customers also have the option to choose cash back of as low as $1,750 or up to $6,000 on certain models.

Chrysler 300C and Dodge Charger large sedans, the Dodge Magnum station wagon, high performance SRT line models and the Dodge Viper are excluded from the deals.

"On the 2006 model-year vehicles, we're working hard to clear that out," said Chrysler spokesman Kevin McCormick.