Redesigned 2005 Dodge and Chrysler minivans will cost around $US2,000 to $3,000 below those of the comparable 2004 models, despite new features such as second and third row seats that fold flat into the floor.
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According to Reuters, Chrysler’s new pricing strategy for its minivans reflects a Chrysler management gamble that they can boost profits by reducing retail prices closer to what consumers are paying currently after rebates, and then scale back cash discounts and 0% financing deals.
The news agency said Toyota and Honda have gained sales by pursuing a similar strategy, adding extra safety and convenience features to their minivans while holding down base prices compared to competitors.
According to Reuters, Chrysler is offering cash rebates of up to $4,500 on 2004 long wheelbase minivans and rebates of up to $3,500 on short wheelbase minivans – amounts larger than the price decreases indicated for the 2005 models. The company continues to lead the minivan segment despite recent gains by Japanese rivals, selling about 370,000 minivans in the US last year, down about 8% from 2002.
Chrysler appears to be hoping that consumers will buy more better equipped minivans to get the convenience of the double fold away seat feature which is optional on lower line models for about $3,000 (as part of a package) and standard only on top-drawer versions, the report said.
Models with the double-fold seat start at $24,990 though the 2005 model line is priced from $18,995, which Chrysler claims is the lowest for any minivan on the US, undercutting the rival South Korea Kia Sedona, Reuters added.
