Cash for Clunkers Causes Chrysler to Run Out of Cars, Cancels Double Rebate Incentives

Chrysler has announced that the automaker is dropping its double rebate incentive campaign, effective Tuesday. In July Chrysler announced that it would double the Cash for Clunkers rebate of up to $4,500 on eligible vehicles, which meant that on some vehicles buyers could get up to $9,000 in rebates. Of course this drove lots of traffic into Chrysler dealers and now the automaker is running out of cars.

Chrysler is changing the message “to focus less on the deal but more on the products,” said Jodi Tinson, a spokeswoman for the company. The double your cash campaign “did what it needed to do” in terms of driving traffic to Chrysler dealerships, she said.

Chrysler’s inventory levels are low due to long factory shutdowns, which means popular vehicles like the Jeep Wrangler and Chrysler Town & Country minivan are in short supply. Many Chrysler dealers are now left only with the vehicles that didn’t qualify for the government’s program.

Full Story: Wall Street Journal