DaimlerChrysler AG launched production of its newly redesigned 2001 Chrysler and Dodge family of minivans on Monday at its Windsor, Ontario, assembly plant. The company said it expects the new minivans to reach full production in a matter of weeks, which could increase pressure for DaimlerChrysler to boost incentive levels for its current-generation minivan product.
The 2001 minivans made their public debut at Detroit’s North American International Auto Show in January and include several new convenience features, including dual power sliding doors and a power rear lift gate.
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While the new minivans aren’t expected to hit dealer showrooms in significant volumes until August, the company may need to add incentives to its current minivans in order to deplete inventories.
DaimlerChrysler currently offers cash rebates of up to $2,000 off some of its minivan lines.
Continued strong incentive levels could place added pressure on DaimlerChrysler’s financial results going forward.
A report in Monday’s Wall Street Journal said DaimlerChrysler was expected to issue a profit warning for the second half of the year when it reports second-qu arter earnings on Wednesday.
DaimlerChrysler spokesman Juergen Wittmann called the report “pure speculation”, adding that he was unaware of any rumor of a profit warning.
