Chrysler say the price reduction plan was part of its wider restructuring work, but denied reports of any of their plants closing down, although they do admit there will be some temporary factory shutdowns.
"We are now putting a plan together to put Chrysler back on track," DaimlerChrysler chief executive Dieter Zetsche explained in an interview with the CNBC television channel.
Chrysler revealed that a "handful" of executives from its sister company Mercedes-Benz had joined the study group looking at potential cost savings ideas for the American branch.
However, Chrysler's falling sales are mirrored at its US rivals Ford and General Motors and it is a fact that sales of such cars have fallen as petrol prices have gone up in recent years.
