Chrysler to launch more incentives in May

DETROIT (Reuters) -- DaimlerChrysler AG's Chrysler Group said Tuesday it will launch a new incentive program to help get more cars off showroom floors in May. Chrysler, which has been known for aggressive incentive spending during the past year, will launch a program called "Maximize Your Miles."

It will offer low-rate financing for up to 60 months, and in some cases, zero-percent financing along with bonus cash to customers across its Jeep, Dodge and Chrysler brands.

The program, which will run through June 2, will include an offer of zero-percent financing and $1,000 cash on its Dodge Durango trucks. Chrysler led the U.S. auto industry in incentive spending in April, at $3,994 per vehicle, up from $3,542 a year earlier.

The incentives boosted April sales at Chrysler, which were up a market-leading 10 percent. Separately, Chrysler (Charts) said it is on track to cut fleet sales by 70,000 units this year, with most of the reductions taking place in the second and third quarters.

The cutback is intended to shore up the resale value of its vehicles and boost profitability. General Motors Corp. (Charts, Fortune 500) and Ford Motor Co. (Charts, Fortune 500) are also reducing fleet sales in 2007.