Chrysler Group LLC is dropping an incentive plan that offered to double the government's "cash for clunkers" rebates amid complaints from dealers that inventory is running short. The move also comes after the cash for clunkers program, which offers rebates from the government of up to $4,500, brought waves of consumers into dealer showrooms.
In July Chrysler offered to double the rebate by adding up to $4,500 in incentives of its own for customer who qualify for the program. Clunkers rebates are available to consumers who trade in older vehicles and buy new, more fuel-efficient models.
Effective Tuesday, Chrysler will no longer offer a flat $4,500 rebate on top of the clunker incentive. Instead, it will vary the size of rebates, depending on the model and brand a customer selects.
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