Chrysler to slash prices of 2008 minivans

07/13/07 - newratings.com

LONDON, July 13 (newratings.com) - The US unit of DaimlerChrysler AG (DCX), Chrysler Group, Thursday announced that its new generation of Dodge and Chrysler minivans, which go on sale this fall, will have a reduced sticker price and new features.

The company said the base model of the 2008 Dodge Grand Caravan will have a manufacturer suggested retail price (MSRP) of $22,470, which is about $2,000 lower than the current model. The vehicle will also have new features worth about $2,000 more than the 2007 vehicle. Chrysler has also reduced the MSRP of the 2008 Chrysler Town & Country by about $3,500 to $23,190. The price reduction will vary with options and models of the new vans arriving at the showrooms sometime this fall, Chrysler said. The company’s spokeswoman Beth Ann Bayus said the company was able to reduce prices despite the addition of new features primarily on account of improved efficiency of its manufacturing plants and because it was targeting options that are most important to consumers.

The company expects to launch the products with little or no incentives. Chrysler’s executive vice president of sales, Steve Landry, said he still expects the minivan segment to reach sales of about one million vehicles, despite heightening competition from small sport utility vehicles known as crossovers.