Chrysler Announces May Incentives of Up to $4,000 on 2009 Models

It said the incentives also include $1,000 owner loyalty for current Chrysler vehicle owners that is good toward most 2008 and 2009 Chrysler, Jeep and Dodge vehicles, and up to $1,000 credit union bonus cash for qualified members who finance their purchase at a participating credit union. The incentives run through June 1.

One Chrysler dealer, James J. Arrigo, said in an affidavit filed with bankruptcy court in New York that incentives "plus cost-cutting measures have helped keep my dealerships operational in these tough times and the same is true for many other dealers across the country.

"Without these incentives, there would be dealerships with little or no sales."

Arrigo's affidavit said that the total average discount to consumers, at the beginning of March 2009, was approximately $5,566 per car, an increase of over $2,000 from the previous year or approximately 20 percent of the average $27,000 wholesale value of a car.

"The uncertainty surrounding the Chrysler dealer network is killing dealers," said Arrigo, co-chair of Chrysler's National Dealer Council in an affidavit regarding Chrysler's Chapter 11 bankruptcy filing.

Inside Line says: Chrysler dangles some tempting bait in front of skittish consumers, as it hopes to keep its dealer body afloat during bankruptcy proceedings. — Anita Lienert, Correspondent