Employee pricing now in Canada

[Xtrema]

For Chrysler and Ford on 2005 models.

This should be good news for potential SRT4 buyers.

[Xtrema]

This article says the discount is up to 2.5% below the dealer invoice price:


Chrysler and Ford expand employee-discounts-for-all into Canada

RITA TRICHUR
Wed Jul 6, 7:28 PM ET



TORONTO (CP) - Ford Motor Co. of Canada wasted little time Wednesday to match rival DaimlerChrysler Canada by offering employee discounts to all Canadian buyers.

The Ford Family Plan, which had been presented Tuesday to U.S. consumers, will also include up to $5,000 in other discounts already in place on 2005 Ford and Lincoln cars, trucks and SUVs. The offer opens Friday and runs until the end of the month.

It excludes the Ford Mustang and Ford Escape Hybrid, already selling strongly, as well as Ford trucks larger than the F-350.

The decision was an apparent about-face as a Ford spokesman had said earlier Wednesday the company had no plans to expand the promotion north of the border.

Ford's move followed an announcement by DaimlerChrysler Canada that it is immediately extending employee discounts to all Canadian customers on virtually all 2005 Chrysler, Jeep and Dodge vehicles.

Chrysler's Employee Pricing Plus program will also include up to $5,500 in additional dealer discounts until the promotion expires Aug. 1.

The employee discount applies to most Chrysler models including - unlike in the United States - the hot-selling Chrysler 300 series, except the high-performance Chrysler 300C SRT8.

The discounts vary to as much as 2.5 per cent off the dealer invoice price.

The moves in Canada came after Chrysler and Ford in the United States on Tuesday followed the lead of General Motors, whose employee-discounts-for-all program boosted its U.S. June sales to the highest volume in almost two decades.

GM spokesman Richard James said the company has no plans to change its Canadian strategy of offering a fuel discount that saves buyers 20 cents per litre up to a limit of 2,500 litres.

"The insanity continues," auto industry analyst Dennis DesRosiers commented after the latest moves.

"The downside of these programs is that they do lower (profit) margins, negatively impact residual (used-car) values and hurt brand value - and how in the heck do these companies find a way to get out of this game?"

DesRosiers said buyers have become "numb" to other incentives such as low-interest financing, and he expects consumers to react positively to the employee discounts.

Carlos Gomes, a Scotiabank economist specializing in the auto industry, said the Chrysler and Ford discounting will spur July sales and could force GM to act.

"It continues to mean significant improvements in vehicle affordability for the average Canadian," Gomes said, noting that overall Canadian auto sales in the first six months of this year were up about two per cent over the first six months of 2004.

The announcement is also good news for vehicle production in the wake of temporary layoffs at both Ford and GM because of slack sales, Gomes added.

"It is reducing the inventory levels for industry quite significantly, meaning that you won't have to go through these periodic layoffs as we've experienced this year."

[Xtrema]

Chrysler Matches GM, Ford on Discount Plan

By DEE-ANN DURBIN, AP Auto Writer
Wed Jul 6, 7:27 PM ET

DETROIT - DaimlerChrysler AG's Chrysler Group became the last of the Big Three carmakers to slap employee discounts on its vehicles Wednesday, raising the stakes in a price war with a very uncertain outcome.

Under the program, which runs through Aug. 1, Chrysler is offering some Chrysler, Dodge and Jeep vehicles at the employee rate plus up to $3,500 cash back. Chrysler is following the lead of General Motors Corp., which began offering an employee discount to customers June 1, and Ford Motor Co., which announced an employee pricing plan Tuesday.

Chrysler also said Wednesday its former chairman and chief executive, Lee Iacocca, who led the carmaker's turnaround in the 1980s, is expected to appear in advertisements for the new promotion. Chrysler's program excludes the Chrysler 300, the Dodge Magnum, Sprinter and Viper and the Jeep Liberty Diesel. All 2006 models and SRT models also are excluded.

GM's sales jumped 41 percent in June thanks to the discount, which allowed customers to buy vehicles for an average of $400 to $500 less than they spent in May. Ford and Chrysler followed after lackluster sales in June.

Quarterly sales results, which will be released in mid-July, will show how much the discount program has cost GM. But Jesse Toprak, an analyst with the automotive research firm Edmunds.com, said early signs indicate the program was cost-effective.

In general, Toprak said, GM paid for the discount by taking away cash rebates and other incentives. GM said more customers were willing to buy rather than lease, which held costs down, and customers also bought more expensive vehicles than they might have because of the perceived savings.

According to Autodata Corp., though, GM spent an average of $4,458 per vehicle on incentives in June, up $449 from May.

Toprak said Ford and Chrysler could have the same success with minimal cost if they follow GM's strategy. Ford already has taken away some cash incentives to help pay for the program, he said.

Still, Toprak said, the Big Three have reason to worry. Consumers might not continue to flock to dealerships as the summer goes on, especially when 2006 vehicles arrive in showrooms without big discounts attached.

GM's program "has further conditioned consumers to expect a big discount when they walk into a GM dealer," he said.

Merrill Lynch analyst John Casesa agreed with that assessment in a note to investors.

"We are concerned that this everyday low price strategy has only set the domestic industry's starting price point a notch lower and in the long run will further erode brand-equity and residual values," Casesa said.

A discouraging sign for the Big Three is that the employee-pricing promotion did little to affect June sales of Asian brands, which continued to climb.

Toyota Motor Corp. spokesman Xavier Dominicis confirmed Wednesday the company has no plans to match the Big Three's discount program. Toyota sales were up 10 percent in June.

"Our outlook is a long-term outlook, and we're seeking sustainable growth," Dominicis said. "Toyota buyers tend not to be the deal-of-the-day buyers. There's a lot of loyalty when you look at our buyers."

Chris Ceraso, an analyst with Credit Suisse First Boston, said the discount programs also could sour relations with dealers. In a research note, Ceraso said the amount GM spent suggests dealers sacrificed thousands of dollars in profit margins in June to help the automaker.

Jim Sanfilippo of Bloomfield Hills-based Automotive Marketing Consultants Inc. said he believes the employee-discount programs could ultimately help U.S. automakers in the 2006 model year and beyond.

U.S. automakers have been trying to get away from incentives and price vehicles more realistically, and this program helps them do that by setting clear prices and letting manufacturers see what consumers are willing to pay, he said.

"Maybe GM erred on the side of generous (in June), but somewhere in there is the sweet spot, where they can make $1 a car or whatever the market will bear," Sanfilippo said. "It's easier to figure that out with pricing than with rebates."

Chrysler shares rose 6 cents to close at $40.16 Wednesday on the New York Stock Exchange. GM shares fell 55 cents to $34.22, and Ford shares slipped 5 cents to $10.35

[heavyD]

I'm looking at an SRT4 but how does this help me since I don't work at Chryser or have any relatives that do?

[Xtrema]

This is the employee pricing for all promotion that GM started last month is US. and stole all the business from the other 2 of the big 3. Ford and Chrysler strikes back and includes Canada as well for their offer.

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1120669753986_116078953/?hub=Canada

In the above exmaple:


CTV Toronto provides an example of a deal on a 2005 Dodge Caravan under Chrysler's promotion now extended to Canada:

* The manufacturer's suggested retail price on the Caravan: $29,630
* The employee price: $26,987.
* Factor in an additional dealer discount of $5,500, and a consumer can buy the Caravan for $21,487.



Now I hope GM will offer the same program in Canada. A Saab 9-2x Aero for under $30K would be awesome!

[ZMan2k2]

Originally posted by heavyD
I'm looking at an SRT4 but how does this help me since I don't work at Chryser or have any relatives that do?


All 2006 models and SRT models also are excluded.

Sorry bro, not gonna get an SRT on the cheap.:thumbsdow

[sabad66]

That's an insane good deal. I wish Honda would do something similar but I highly doubt it..

[sabad66]

On the SRT4 issue, I thought that car is going to be discontinued?

[heavyD]

Originally posted by ZMan2k2
Sorry bro, not gonna get an SRT on the cheap.:thumbsdow

Figures.:(

[ACX]

Chrysler (usa) has had 7 consecutive postive sales quarters. GM is in the tank and to me the move was desperation.

Chrysler should be careful about what they offer markdowns on.

[JCX]

Originally posted by heavyD


Figures.:(

Are you seriously thinking about getting an SRT-4? You should still be able to get a decent deal on one.

Do you know any people at Dodge dealers? I think a guy I know got fleet pricing which was rather reasonable. Shall I ask around? You might be able to find a decent used one too...

[heavyD]

Originally posted by JCX


Are you seriously thinking about getting an SRT-4? You should still be able to get a decent deal on one.

Do you know any people at Dodge dealers? I think a guy I know got fleet pricing which was rather reasonable. Shall I ask around? You might be able to find a decent used one too...

I need a 4-door for work and I don't want a generic japanese 4-door so it's either WRX or SRT4 as I want some performance and I want new. A fella that works at Courtesy Chrysler actually PM'd me so maybe the wheels are already turning.:burnout:

Sadly the boss (wife) says I have to get rid of one of my DSM's so I may have to part with my beloved Eclipse. I'm resisting but I don't know where I'm going to put all my vehicles.:cry:

[GoChris]

I got fleet pricing on my SRT-4 so you can go that route, just talk to the fleet manager, they don't care what price they sell it for so you can get almost fleet cost pretty much. I did that when they were blowing out the 04s and got double gst off also. Good deal I thought but it was pretty easy to get that price anyway it seems.

[JCX]

Originally posted by heavyD


I need a 4-door for work and I don't want a generic japanese 4-door so it's either WRX or SRT4 as I want some performance and I want new. A fella that works at Courtesy Chrysler actually PM'd me so maybe the wheels are already turning.:burnout:

Sadly the boss (wife) says I have to get rid of one of my DSM's so I may have to part with my beloved Eclipse. I'm resisting but I don't know where I'm going to put all my vehicles.:cry:

Sounds good. If you ever want a quick shakedown in an SRT-4 you should come out to one of our meets. :rofl:

[240droptop]

Is the srt-4 not discontinued?

[heavyD]

Originally posted by 240droptop
Is the srt-4 not discontinued?

There won't be a 2006 SRT4 but 2005's are still available.

[RUQUIKR]

I sell for Dodge, just to clarify the SRT-4 qualifies. It is on all 2005 vehciles till month end. Sucks to be a salesman this month!:cry:

[Altezza]

Originally posted by RUQUIKR
I sell for Dodge, just to clarify the SRT-4 qualifies. It is on all 2005 vehciles till month end. Sucks to be a salesman this month!:cry:

What's the "Employee Pricing" cost for the SRT-4?

[RUQUIKR]

You'd have to come in and see me to get it. Depends on options.

[max_boost]

WOW!

Does the low financing rates still apply?

Employee pricing + rebates + 0% financing :eek:

Do you salesguys still make anything?

Saab would be the only GM line I would consider. 9-3 Aero or 9-2X very nice cars. :thumbsup:

[Arthur Dent]

Originally posted by RUQUIKR
You'd have to come in and see me to get it. Depends on options.

can you ballpark it? I need to sell the wife a bit before I come in.

[GoChris]

damn really? i think might go get one for the wife too! matching his and her srt-4s!!!

[Arthur Dent]

here's the prices for Dodge

http://www.daimlerchrysler.ca/EN/CHRYSLER/1,,EN-CHRYSLER-PLUS,.html

$24,138 for SRT4 :thumbsup:

[RUQUIKR]

They are very hard to get, so if you are interested feel free to contact me through P.M. or at the dealership 207-3788 (Kurtis). I will do my best at locating one for you if you are interested.

[RUQUIKR]

Originally posted by max_boost
WOW!



Do you salesguys still make anything?



ROFL, no. Honestly, if Iknew this was going to happen I would have booked a vacation this month.:D

[googe]

holy discount on vipers

thats like $20,000 off! if i bought a new viper a month ago boy would i be pissed right now :D

reminds me of an old thread where people insisted dealers dont make even make 10k on high end sports cars

khyron? :D

[Xtrema]

^ For the people shopping @ that range, $20K probably won't sway anybody away from a Porsche or Aston Martin

[maplelodge]

RUQUIKR - u have PM

[20incheyes]

SRT-4 :bigpimp:

[heavyD]

Originally posted by 20incheyes
SRT-4 :bigpimp:

Looks like the car I just bought.:bigpimp:

[Seanith]

Originally posted by sabad66
That's an insane good deal. I wish Honda would do something similar but I highly doubt it..

Import companies don't have to hunt for sales like that in most cases.