Monday, January 31, 2005

Chrysler workers get deal on Mercedes

Discount plan widened to help prop up sales of ailing luxury carmaker.

By Ed Garsten / The Detroit News

A Mercedes in your garage? Chrysler employees and up to six family members are now eligible to buy or lease a Mercedes-Benz vehicle at 12.25 percent below sticker price under a new program from the automaker. If you could, would you take advantage of the deal? Yes, I'd do it. No, I still can't afford it. No, it's still a foreign car. Get results and comments Comment on this story Send this story to a friend Get Home Delivery

AUBURN HILLS - They design, build and sell all-American cars and trucks, but now Chrysler employees in the United States can score big discounts for family members on German-engineered Mercedes-Benz vehicles.

DaimlerChrysler AG's Chrysler Group has extended and expanded its employee discount program through 2005. Chrysler employees and up to six family members are now eligible to buy or lease a Mercedes-Benz vehicle at 12.25 percent below sticker price.

Previously, the discounts were available to two immediate family members. "It helps us try to sell a few more cars," Chrysler Group spokesman Kevin McCormick said. "Employees are always proud to help out a friend or family member."

Mercedes is a DaimlerChrysler family member that could use some help.

While Mercedes-Benz's U.S. sales edged up 1.3 percent in 2004, the brand's once-vaunted reputation has been tarnished a bit over the past few years.

And General Motors Corp.'s Cadillac division surpassed Mercedes-Benz last year to become the third best-selling luxury brand behind Lexus and BMW.

"Quality is down, perception is down, image is down," said Art Spinella, president of CNW Marketing Research Inc., a Bandon, Ore., a company that monitors consumer behavior and vehicle sales trends.

Once looked at as the weaker half of the corporate marriage that combined the German and American automakers, Chrysler now is strutting its stuff as the only U.S. automaker to improve U.S. market share in 2004. Spinella said the wider availability of discounts on Mercedes vehicles is ironic.

"This could be a case where Chrysler saves Mercedes," he said.

The enhanced discounts on Mercedes models could also become a sore point for the United Auto Workers. In the past, the union has openly boycotted foreign-made vehicles to protect U.S. factory jobs.

In 2002, UAW members lobbied Ford employees to stop buying foreign-built cars, including models sold by Volvo and Jaguar, which Ford owns.

Employees interviewed last week were split over whether it was a good idea to offer discounted Mercedes vehicles to Chrysler employees, retirees and family members.

"That just shows you what (Chrysler executives) think of our products," said Guy Neroni, an inspector at Chrysler's Warren stamping plant. "You also see a lot of Ford execs driving around in Jags."

When asked if he would take advantage of the deal, Neroni said he recently bought a Chevrolet Corvette, a product of crosstown rival General Motors Corp.

Herb Helbig, an engineer for the Chrysler Group's street and racing technology division, said he has no plans to buy a Mercedes but doesn't think it would be disloyal. "We're all on the same team," he said.

One of them might be Mike Donoughe, vice president of engineering for the body-on-frame team. He once worked on Mercedes vehicle programs and would consider taking advantage of the deal to own one.

"More choices would always be of interest to me," said Donoughe.

"I would have no great compelling reason to drive a Mercedes. I'm a Dodge guy," said Helbig, adding that he thinks there will be plenty of takers.

Jason Vines, Chrysler's vice president of communications, joked he would still drive a Chrysler vehicle because he gets one for free, but "I hope that within the next year, I have a Mercedes-Benz in my garage my wife will drive."

Detroit News Staff Writer Brett Clanton contributed to this story. You can reach Ed Garsten at (313) 223-3217 or egarsten@detnews.com.