The Chrysler division of DaimlerChrysler AG raised the stakes in Detroit's battle of the incentives on Oct. 3 by extending its zero percent interest deals and offering bigger cash rebates, according to a Reuters report.

Following the lead of General Motors Corp. and Ford Motor Co., which both boosted their sales incentives on Oct. 1, Chrysler said it would now offer five-year no-interest loans on its minivans and 2.9 percent 60-month loans on all 2003 cars that previously had been sold with an interest rate of 4.9 percent, Reuters said.

Zero percent loans for durations of less than five years will now be offered on 23 different 2003 model cars and minivans, according to a Chrysler spokesman.

The No. 3 U.S. automaker also shaved 2 percentage points off its standard 36- and 48-month loans and raised "cashback" deals on popular models, including the Jeep Grand Cherokee sport-utility, to $2,500 from $1,000.

The new incentives program, which began on Oct. 3, will remain in effect through Nov. 4, according to Chrysler spokesman Marc Henretta.

Henretta stressed that Chrysler also was still offering a 7-year, 70,000-mile vehicle warranty, which is longer-lasting than the standard 3-year, 36,000 mile warranty offered by its competitors.

Henretta claimed that Chrsyler is spending less on incentives than its crosstown rivals. Profit margins at all of the "Big Three" have been squeezed by Detroit's escalating incentives battle.

"We've never followed GM specifically," Henretta told Reuters. "We're here to do our own thing, and we think these programs offer a great value for our customers."