Chrysler joins Hyundai in matching incentives for Toyota owners

David Shepardson and Alisa Priddle / Detroit News Washington Bureau

Two of Toyota Motor Corp.'s competitors reversed course and said today they will join those offering incentives on trade-ins from Toyota owners.

Chrysler Group LLC and Hyundai Motor Co. are the latest to offer rebates. General Motors Co. and Ford Motor Co. were first to offer $1,000 incentives for Toyota owners through the end of February. Ford today said it also is increasing the amount of money it provides to dealers for advertising to allow them to capitalize on the opportunity created by Toyota's woes.

Chrysler has spent the last two days mulling a change in its programs and had planned to wait until next week to announce its latest incentives.

"We are working on it, we are considering it," Olivier Francois, head of the Chrysler brand, told reporters earlier today at the Washington auto show.

By day's end, Chrysler fast-tracked its plans and announced that effective immediately the automaker is offering current Toyota Tundra, Tacoma and Sienna owners an additional $1,000 trade-in bonus cash with the purchase or lease of any new Chrysler, Jeep, Dodge or Ram vehicle. For those wanting to turn in a leased Toyota to buy or lease any Chrysler product, $1,000 in bonus cash also is available. "The market is an example of opportunities. ... It is made up of opportunities, risks," Francois said.

Earlier in the day Hyundai said it is offering $1,000 rebates to U.S. customers who trade in Toyota vehicles for one of three Hyundai models. The incentive lasts through Monday and applies to the Sonata, Elantra and Elantra Touring.

"Our dealers thought this would help in their sales effort," said Chris Hosford, a Hyundai spokesman.

But Honda's U.S. arm said it had no plans to follow suit.

John Mendel, American Honda Motor Co.'s executive vice president, said it won't offer any incentives to poach Toyota customers.

"We will not react in a predatory way toward either Toyota or Toyota customers," he said.

dshepardson@detnews.com (202) 662-8735