Chrysler offers zero-percent deals through June 1 as incentive battle continues

Chrysler offers zero-percent deals through June 1

DETROIT — Chrysler Group LLC said Tuesday it will offer zero-percent financing on most 2010 model year vehicles through June 1.

The deals are similar to offers Chrysler had in April. They’re intended to help Chrysler compete with Toyota Motor Corp., which has extended its own zero-percent financing deals through June 1.

Toyota raised its incentives in March to lure back customers after recalling millions of vehicles for safety problems. That forced its competitors to offer their own deals. Toyota first extended the deals through April and now has extended them again.

Automakers have been trying to control incentives, which eat into profits and can hurt a brand’s image. Chrysler had the highest incentives in the industry in April, at $3,374 per vehicle, according to Edmunds.com. But that was $1,000 lower than the automaker spent last April, when the market was at a 30-year low.

Toyota spent $2,498 per vehicle in April, Edmunds said, up from $1,634 last April.

Chrysler’s sales were up 25 percent in April thanks in part to a promotion on its minivans. It also was one of few automakers that saw sales gains between March and April.