Big Three automakers on road to a price war

Chrysler chairman Lee Iacocca welcomed competitors Ford and General Motors to the cash rebate war Wednesday with the prediction that "March will be a great month for car buyers." Chrysler's own rebate program, scheduled to expire at the end of February, will likely be extended into March to match the slashes announced Tuesday by Ford and GM, Mr. Iacocca said.

Chrysler has been offering rebates of up to $700 on new car purchases, a move that enabled the No. 3 automaker to boost its sales in the past two months.

General Motors said it would return up to $700 in rebates on certain models.Ford announced cuts of 10 percent from base sticker prices.