Chrysler has reported its May sales stats, and it's an ugly picture: overall sales fell 25 percent from last year, to 148,747 units. The Sebring is down 30 percent, the "company saving" 300 fell 59 percent, and the crotchety PT Cruiser slid 48 percent. Overall Chrysler brand sales nosedived 38 percent. Aside from the Patriot (up 82 percent), Jeep's peaked. Every other Jeep product saw double digit declines: Compass (-17), Grand Cherokee (-23) and yes, the Wrangler (-25). Dodge also died a death. While the Caliber was up seven percent, everything else cratered. The Charger faltered (-25), the Avenger retreated (-26) and the Caravan blew town (-25). Obviously all the trucks are getting trashed, from -37 percent for the Ram to -69 percent for the Durango and -56 percent for the Nitro. The only silver lining: The Dodge Boys sold 7520 units of the new Journey (with or without puddles). If they keep up the big mo, they're looking at 87k p.a. (yes, I have a calculator). Co-Prez Jim Press put a brave face on the results, claiming "it's alright Jack keep your hands off my stack." Just kidding. (Or not.) ChryCo's "determined to provide consumers what they need and want." So keep the 300 (available with SRT looks but without the crazy engine) and Charger, Patriot, Wrangler, and Grand Cherokee and Sebring convertible. Everything else has got to go.
Why on earth would they want to save the Sebring convertible?
J.B.
I agree with the list of vehicles you’ve suggested they keep.
ChryCo’s only other silver lining “might” come when the Challenger hits the showrooms. Not that it’ll save them or make them any money. The Challenger will (for a short time) increase showroom traffic, at which time they can foist an alternative on potential buyers, er “anyone w/pulse.”
DT
So keep the 300 (available with SRT looks but without the crazy engine) and Charger, Patriot, Wrangler, and Grand Cherokee and Sebring convertible. Everything else has got to go.
Everything else?
Considering the number of plant facilities, is Chrysler now even a viable operation if it can only sell 1.8 million cars a year?
That’s six plants with 300,000 capacity running full bore.
Doesn’t Chrysler have way more plants than that?
As for Chrysler “determined to provide consumers what they need and want.” – shouldn’t that read:
“determined to provide consumers with penny-pinched vehicles with parts from disgruntled suppliers, as well as popping Chery badges off of Chinese cars at the port and substituting Dodge badges, not to mention selling rebadged Nissans…” ?
Toyota sold more than 100,000 vehicles in May than Chrysler did, and Toyota was down too. That’s amazing.
Several observations:
1. Minivan’s are #1 and #3 on the market, combining to double up the Honda Odyssey. On pace for 360K in sales this year, they are everything Chrysler could have hoped for.
2. Their Project D revamp of Sebring/Avenger cannot come soon enough. These cars should be doing well in this environment, but they suck.
3. Charger continues to do well, while 300 is tanking. I know that Charger is a year newer, but something is drawing traffic to Charger, and not to 300 despite them being basically the same car. The 2010 300C cannot come soon enough
4. Journey is selling well. 7500 in only it’s 3rd full month is probably beyond expectations.
5. A big chunk (10,000 sales or 20% of the decline) is due to discontinued models – Pacifica, Magnum, PT Cruiser convertible.
6. Ram sales are tanking as production ceases in advance of all new 2009.
You’d really deep-six the Ram and minivans?
“Considering the number of plant facilities, is Chrysler now even a viable operation if it can only sell 1.8 million cars a year?
That’s six plants with 300,000 capacity running full bore.
Doesn’t Chrysler have way more plants than that?”
Belvidere, IL – Caliber/Compass/Patriot
Sterling Heights, MI – Sebring/Avenger
Brampton, Ont – 300/Charger
Newark, DE – Durango/Aspen
Saltillo, Mex – Ram
St. Louis North, MO – Ram
St. Louis South, MO – Caravan/Town and Country
Jefferson North, MI – Grand Cherokee/Commander
Toledo North, OH – Liberty/Nitro
Toledo South, OH – Wrangler/Wrangler Unlimited
Warren, MI – Ram/Dakota/Mitsubishi Raider
Windsor, Ont – Caravan/Town and Country/VW Routan
That’s 12 total. Granted, most of them are only running one or two shifts right now I’m pretty sure. The only one that is on the chopping block is Newark, but there’s rumors that if the Fiat/Chrysler deal goes through Newark will be retooled for the joint venture. Nothing official on that yet, though.
Oddly enough, didnt the Aspen get an 18% sales increase?? There must be $15K on the hood of those things for them to move in this market.
Gangstas are buying the Charger like crazy here in Birmingham. Just a week or two ago a ritzy restaurant and a gas station were both robbed in the same morning, the getaway car was a silver Charger with chrome rims. I see them everywhere, blinged to the hilt. It’s funny though, most of them are base V6s, not the HEMI(tm).
Isn’t the 300 due for an update soon? They’ve been working on that the last few years, right? And a proper Neon replacement as well?
CommanderFish-You left off Toluca Car Assembly in Mexico, where the PT Cruiser and the Dodge Journey is made. So lucky number 13.
Why keep the Sebring drop-top? Not because it’s great, or even that good, but because there’s an identifiable market for it with little competition.
There has always been a market niche for convertibles, and that niche is a little bigger when said convertible is also a practical car to own and drive, e.g. 4 seats, modestly priced, usable trunk, not a gas hog, not too pricey to insure, etc.
4-seater convertibles are a rarity. the PT drop-top is gone, and MINIs have no trunk, and all the other models (VW, Lexus, BMW, Volvo, Saab, etc) price out near or above $40k.
It’s too bad A&E is no longer airing new “King of Cars” episodes. It would be entertaining to watch the Blue Genie entertain an empty showroom for 30 minutes. Apparently that dealership is so desperate to sell Rams, they’re offering $1.77 gas on Rams for 3 years.
I sure hope Chrysler has some new small, efficient vehicles to unveil tomorrow. Otherwise they likely don’t have too many days/weeks/months left.
Oops, sorry for the grammar. With faux pas like “little much competition”, my late English teacher Ms. Baird would turn over in her grave. I tried to edit it, but it kept reappering as originally (badly) written.
Found more plants. There appears to be two plants in South Carolina-one in Gaffney and one in Ladson. The first used to assemble Dodge Sprinters; the second currently does. Both plants may still be owned by Daimler, though.
Justin Berkowitz,
I’m surprised that the minivan’s didn’t make your “keepers” list. Why?
They are ugly and pretty awful but they do sell.
Around here, the cheapest thing in the Dodge dealers’ ads is a RAM. If you want a strippo, you can get one for 12 grand. Which is fine, if 16mpg lights your fuse.
There is no debate. There is a consensus and the science is settled: The Peak Chrysler theory is true!
So, Chrysler could manage with seven plants, if they could plan ahead a bit.
Belvidere for Caliber and Compass
Brampton for 300, Charger and Challenger
Saltillo for Ram and contract mfd. Nissan pickups for later
St Louis So. for Caravans and T&C
Jefferson North for Grand Cherokee, plus move Liberty production there alongside it
Toledo South for Wrangler, add a light pickup truck(sold as a JEEP ONLY) based on Wrangler to replace Dakota – make a diesel optional in the USA and Canada
Toluca Mexico for Journey and Project D cars.
Nissan to supply sub-compacts for the USA and Canada from their Mexican factory.
Chery to supply sub-compacts for Mexico from their Chinese factory (!)
Oh yeah, before I finish my prescription for the 3 headed dog – I’ll write a little more sript as follows
-Improve the interiors to world average standards for the class of car you’re competing with, at minimum
-Improve the quality, reliability and durability of your cars to at least Hyundai levels
-Stop looking at the remaining workforce and suppliers like they’re the enemy, and stop screwing them over at every chance – take a clue from what saved Chrysler in 1980-1983 and start considering them as PARTNERS instead
Agree, disagree, TTACers?
So Chrysler claims it is “determined to provide consumers what they need and want”? I doubt it.
First, they can’t distinguish between needs and wants. The former is in the saddle nowadays: people are buying fuel-thrifty, reliable cars. The latter relies on emotion and is exemplified by the 300’s faddish styling: gunslit windows and a pugnacious front. Result: now that every gangsta has gotten his pimpmobile, “the ‘company saving’ 300 fell 59 percent.”
Second, Chrysler is still passive-aggressive to its customers. That Canadian Driver review of the 300 notes “The driver’s door is reluctant to stay open when you want it to. More than once it almost closed on my leg, as I was getting myself situated in the car.” This maddening flaw has existed in Chrysler products for decades. Perhaps morale at Auburn Hills is so poor no one really gives a damn.
menno, in reference to your list:
Jeff North will make a redesigned G. Cherokee/Durango as Newark will close (Aspen goes bye).
Not sure if you can build the Sebring/Avenger in Toluca with the Journey, don’t know what the capacity is. You will need another plant for Ram/Titan even with todays depressed truck market.
Belvedere can make Caliber and Patriot, but not the Compass – it needs to die. And yes they need to make a Jeep pickup based off the Wrangler and drop the Dakota or redesign it as a true compact pickup.
As for interiors, they are coming. There is a crash program underway and I’ve read some interesting things about it. You just haven’t seen any results yet. Hopefully it will be good.
The 300 is an old car, it’s been around since late 2004 as-is. Nearly any car outside of the characterless appliances called the Camry and Accord loses sales as years progress. The 300 is getting a redesign and for Chrysler’s sake I hope they don’t screw it up like they have pretty much everything else.
Where Chrysler has primarily dropped the ball is styling and product planning.
Chrysler knows how to make a fantastic looking vehicle but aside from the LX RWD cars they haven’t produced any, everything they have come out with looks godawful inside and out.
A stark contrast to the vehicles they were producing ten years ago which at least looked appealing inside and out.
Put a fork in them. Let Carlos Ghoen pickup the pieces at the liquidation auction.
If Chrysler slides inexorably, it will be interesting to watch how things play out in Canada. Methods aside, Chrysler is hanging on tenaciously to their market share in Canada.
http://www.desrosiers.ca/Monthly%20Updates/sales.pdf