[RAM MAN]

Situation

• Chrysler LLC plans to offer new round of rebates and incentives in Dec
• Campaign kicks off w/ Dodge, Jeep, Chrysler TV ads Nov 20; will emphasize lifetime warranty
• Cutting production now but still needs to trim dealer stocks of 2007 models
• Heaviest discounts likely to come on 4 models being discontinued
• Attempting to bring its business in line w/ sales demand
• Consumer Reports' most disappointing vehicles included Nitro, Sebring, Caliber, Compass

Significance

• New incentives in preparation expected for tough sales year in 2008
• Could add further competitive kick to already tough year for overall US auto market
• Chrysler's product development is broken; desperately needs to be fixed
• Cerberus Capital Mgmt denies they're just trying to strip out costs and flip Chrysler
• Unsold inventories of Caliber, Compass, Liberty, Nitro have piled up on dealership lots

Read Quotes

Click Here for Full Digest and Source Article:

• http://www.automotivedigest.com/view_art.asp?articlesID=23411

Sourced From: The Wall Street Journal, November 9, 2007; Automotive News, November 5, 2007, page 8; Business Week, November 8, 2007