GM and Chrysler extend incentives, Chrysler cuts leasing

Detroit's carmakers announced their expected tough profit and loss statements this week, and now they're announcing another round of incentives in an effort to help push the bottom line back toward black. General Motors and Chrysler have both released word of their extended incentive programs today, with Chrysler adding some new offers into the mix, and announcing they will no longer be underwriting leases beginning August 1.

An extension of the existing employee discount program to friends and extended family of employees will run through July 31 at GM dealerships. The decision was a late one, coming through just yesterday evening in a company email.

Chrysler's incentives include 0% financing for up to 72 months on existing stock of 2008 Jeep Grand Cherokee, Commander, Dodge Durango and Chrysler Aspen SUVs, but only the most credit-worthy applicants will get the deal. Those with slightly less spotless records will be offered 60 months at 0%.

Bonuses and cash back offers on a number of lease vehicles is also in the mix at Chrysler. The programs will run through July 31. The end of the program coincides with the end of Chrysler lease underwriting guarantee for dealers. Chrysler is expected to go over the details of the end of the lease program with dealers in a conference call this afternoon, but it appears dealers wishing to offer leases to customers will have to do so through private banks - most of which are no longer in that segment of the market, reports The Detroit News.

Both incentives are designed to help clear out existing inventory as the industry moves closer to its summer hiatus. Chrysler's much-talked-about $2.99 fuel promotion has so far failed to significantly affect sales, but the company hopes the 0% offer will stir more interest.