Chrysler to cut prices by $10,000

DaimlerChrysler will slash the price of its Jeep, PT Cruiser and Voyager people-mover models by as much as $10,700 as it seeks to increase its modest share of the New Zealand market.

"We have taken these steps for one reason - to stimulate sales of our products and become a serious niche market player," said Chrysler Jeep general manager Brett Aspden.

"Each carmaker in New Zealand expects to increase their share this year and we want to be one of them. It will be interersting to see what happens."

Prices of the retro-styled PT Cruiser have been slashed by thousands of dollars as the carmaker lands new stocks of the vehicle. The Jeep range gets price cuts of up to $5000.

The base model PT Cruiser Classic five-speed manual model is now $36,900 - down $8000 from $44,900. The Classic four-speed automatic is $38,900 - $8700 cheaper than last week's $47,600.

The better-equipped Limited model PT Cruisers have been reduced in price even further.

The manual model is now $43,900, down $10,000 from $53,900. The automatic is down a whopping $10,700, from $56,600 to $45,900.

Aspden says the new prices are the result of a "more productive negotiation with the factory."

"There will always be product, because of demand, that is very difficult to price for the New Zealand market," he said.

"An iconic car like the PT Crusier is an example. We suffered in price in the early days of the Cruiser because of demand for it overseas. Then about 90 days after it went on sale here the New Zealand dollar fell and we had to put the price up.

"There is a general attitude that pricing for vehicles is simplistic. It's not. There are a myriad of issues to get through."

Chrysler Jeep has turned the clock back seven years, bringing pricing back to the level of 1996.

The new price of the Cherokee Renegade is exactly the same as the rather spartan XJ Cherokee Sport was when it was first launched in 1996.

The new price of the Grand Cherokee V8 Limited is $4000 lower than the six-cylinder Grand Cherokee Limited was when it launched in 1996.

Also, the new Grand Voyager SE is only $2000 away from its launch price in 1997, when the Kiwi dollar was beginning its slippery slide.

Aspden said Chrysler Jeep growth this year would largely be dependent upon the success of the new diesel Jeeps - the Cherokee, which landed here the other day, and the Grand Cherokee, which gets here next week. The Cherokee uses a 2.8-litre turbo-diesel engine, an updated VM design. The Grand Cherokee gets the five-cylinder 2.7-litre oil-burner from the 270 CDi M-Class Mercedes-Benz.

New prices:

Voyager SE $59,900 ($62,900), Grand Voyager LTD $72,900 ($75,900), Grand Voyager AWD $77,900 ($81,900).

Jeep Wrangler Sport manual $41,900 ($43,990), automatic $42,900 ($45,990). Jeep Wrangler Renegade manual $44,900 ($47,990), automatic $45,900 ($49,990).

Jeep Cherokee Ltd $57,900 ($62,900), Cherokee Renegade $55,900 ($59,900).

Jeep Grand Cherokee Limited (including Quadra-Drive) $75,900 ($85,900), Grand Cherokee Overland (including Quadra-Drive and sunroof) $85,900 ($91,900).

Sales so far this year: 48 Cherokees, 52 Grand Cherokees, 22 Voyagers, 17 Wranglers.