Chrysler has reported a 9 percent year-on-year fall in its sales for July although this limited drop also adds up to a 30 percent increase compared with the previous month June. Consumer traffic in Chrysler, Jeep and Dodge dealerships more than doubled the last week in July compared with the same time period in 2008. The increased consumer traffic was driven by interest in the U.S. Government CARS program, more commonly known as “Cash for Clunkers” and Chrysler Group’s easy-to-understand incentive program.

“The government’s program is doing what it is designed to do–spur consumers to trade in older gas guzzlers for new, fuel-efficient vehicles,” said Peter Fong, President and Chief Executive Officer–Chrysler Brand and Lead Executive for the Sales Organization, Chrysler Group LLC. “While we don’t expect the industry sales forecast to change dramatically, we are seeing encouraging signs that consumer confidence is building, and more consumers are considering purchasing a new vehicle.”

Chrysler Group LLC reported total U.S. sales for July 2009 of 88,900 units, an increase of 30 percent versus June 2009. Compared with the same time period in 2008, sales decreased 9 percent. Retail sales for July 2009 were 76,693 units. On July 27, the Company restarted production at nine of its 11 manufacturing facilities. Overall industry figures for July 2009 are projected to come in at an estimated 11.2 million SAAR.

“The new-vehicle sales market got a shot in the arm the last week of July,” said Steven Beahm, Vice President–Sales Organization, Chrysler Group LLC. “As a result of customers visiting their local Chrysler, Jeep or Dodge dealer, largely based on the news of the CARS program, retail sales of Chrysler Group small cars were up 52 percent compared with July 2008 and 106 percent versus June 2009.”

The company finished the month with 136,734 units in inventory, representing a 40-day supply. Inventory is down 68 percent versus June 2008 when it totalled 409,331 units. “We’ve been working towards a ‘pull’ system by reducing our inventory, and levels are now at their lowest point in years,” Beahm added. “Consumer demand is increasing, our vehicles have the best quality in the history of the company and our manufacturing plants are running at full production to fulfil customer orders.”

July Brand Sales Highlights

Dodge Journey, Avenger and Caliber and Jeep Patriot and Compass registered their best July sales ever; Jeep Patriot sales increased 134 percent (8,059 units) compared with July 2008 and 192 percent versus the previous month; Jeep Compass sales were up 95 percent (2,727 units) versus July 2008 and 183 percent compared with the previous month; Dodge Caliber sales were up 63 percent (7,718 units) compared with July 2008 and 121 percent versus the previous month; Dodge Avenger sales increased 30 percent versus July 2008 (5,022 units) and 143 percent compared with the previous month; Dodge Grand Caravan sales increased 37 percent versus July 2008 and 44 percent compared with prior month; Chrysler PT Cruiser sales were up 24 percent (2,377 units) compared with July 2008 and 271 percent versus June 2009; Mopar posted a U.S. sales increase of 9 percent in July compared with June 2009, which follows a month-over-month sales increase of 8 percent in June 2009; and through July 2009, Mopar has launched 200 new Authentic Accessories & Performance Parts.

Incentives

Demand for Chrysler, Jeep and Dodge vehicles and consumer traffic continues to increase, reaching a high point for the year in July. “Customers love our summer events, and as the 2009 model year comes to an end, the company resumes its ‘Summer Clearance’ event, offering consumers great vehicles with competitive prices and attractive financing,” said Beahm.

In conjunction with the U.S. Government’s CARS program, “Summer Clearance” resumes Aug. 4, 2009, at Chrysler, Jeep and Dodge dealerships across the United States. Chrysler Group LLC will offer zero percent financing for up to 72 months through GMAC Financial Services on select 2009 model vehicles, or up to $4,500 Consumer Cash to all consumers, regardless of if they have a trade-in vehicle. These incentives are valid through Aug. 31, 2009. “Everyone shopping for a new car or truck still qualifies for an incentive of up to $4,500–even if they don’t have a vehicle that qualifies under the U.S. Government’s program,” Beahm added.

July 24, 2009 marked the start of the U.S. Government’s Car Allowance Rebate Systems (CARS) program, which offers a government credit of either $3,500 or $4,500 for trading in an inefficient vehicle that is not more than 25 years old for the purchase of a new vehicle. The amount of the credit is determined based on the fuel-economy improvement between the turn-in vehicle and the new vehicle purchased. Chrysler Group offers consumers 35 Chrysler, Jeep and Dodge vehicles from which to choose at almost 2,400 Chrysler, Jeep and Dodge dealerships located across the United States.