Chrysler has announced a massive incentive programed aimed at clearing inventories and improving the overall company outlook. The Chrysler incentives begin January 26th and include…

• 0% APR loans for up to 48 months
• Employee pricing PLUS additional discounts of up to $6,000
• Another $1,000 cash for financing through Chrysler Financial or a local credit union

Also notable is that these discounts apply to all Chrysler models and not just a few limited vehicles. The company hopes that this announcement will fuel sales and help show the government they can turnaround their operation. Chrysler is also wanting to get another $3 billion in government loans next month.

Sales for Chrysler dropped by more than 30% in 2008 and over 50% in December 08′ alone.

Rarely has any automaker offered added discounts to the already discounted employee pricing. And I can’t remember the last time I seen these types of discounts being offered in addition to 0% financing. I feel it’s a step in the right direction, but is it a matter of too little too late? Only time will tell.

Chrysler’s plants have been idle since Christmas and the company is bleeding cash. Dealers have not been placing orders in hopes of clearing out their own lots. According to J.D. Power & Assoc, vehicles on dealer lots in December had been there an average of 142 days. That is far and away the industry average of 92 days.