Chrysler Group's
September sales in the United States make for bleak reading,
down 42 percent year-on-year at 62,197 units with the
Chrysler brand the worst hit, down 61 percent, while Dodge
(-43 percent) and Jeep (-19 percent) fared a bit better.
Every current production model spread across the three
brands was down year-on-year apart from Jeep's Grand
Cherokee model which saw sales of 5,601 units last month, an
increase of 23 percent compared with the same period a year
ago.
Chrysler blames
a severe lack of inventory as contributing to the fall in
sales, with its inventory having been whittled down all
year, partly as a result of the shutdown that occurred while
it went through the Chapter 11 bankruptcy process earlier
this summer. Chrysler finished September with 138,456 units
in its inventory, representing a 56-day supply. Inventory is
down 64 percent versus September 2008 when it totalled
381,365 units. Overall industry sales figures for September
are projected to come in at an estimated 9.4 million SAAR.
Chrysler's total sales for the year-to-date is 715,516 units
which is down 40 percent year-on-year.
The hardest-hit
models year-on-year in September included Chrysler's Aspen
(-89 percent), PT Cruiser (-89 percent) and Sebring (-73
percent), Dodge's Caliber (-89 percent), and Jeep's Compass
(-90 percent) and Patriot (-57 percent) while the best
performers, apart from the Grand Cherokee, included Jeep's
Wrangler (-2 percent) and Commander (-6 percent) and Dodge's
Charger (- 8 percent).
There was better
news when September's sales figures are compared to the
previous month, August, which hadartificially benefitted
from the "Cash for Clunkers" scheme. The Jeep Wrangler's
6,002 units last month represents a 7 percent increase
compared with August while the rangler continues to be top
in market share in the compact sport-utility vehicle (SUV)
segment. In addition to the Wrangler’s strong showing in
September, Dodge Challenger sales (1,778 units) last month
increased 57 percent compared with the previous month, and
the Charger saw increased sales (7,507 units) of 16 percent
compared with August.
Mopar U.S. net sales were even compared with August 2009,
balancing tough market conditions with the launch of several
campaigns that were successfully implemented through the
full commitment of the dealer network. Digital owners’
manuals were announced for all 2010 model-year vehicles, a
move that will save 930 tons of paper or 20,000 trees
annually. Buyers of 2010 Chrysler, Jeep and Dodge vehicles
will receive a digitised owner’s manual on a DVD and a
full-colour guide, eliminating the bulky paper version.
Separately, at the Frankfurt Motor Show last month, Mopar
showcased a “Moparized” Jeep Wrangler Unlimited and a Jeep
Liberty.
“While we had some bright spots in September, it was still a
challenging sales environment for the industry,” said Peter
Fong, President and Chief Executive Officer–Chrysler Brand
and Lead Executive for the Sales Organization, Chrysler
Group LLC. “Low inventories of popular models at the start
of the month hampered Chrysler, Jeep and Dodge sales,
however, the company responded with increased production.
The company finished the month with increased market share
compared with August 2009. We believe the remainder of 2009
will continue to be a challenge for the U.S. automotive
market. Credit markets have thawed slightly, but still
remain tight, and consumer confidence, as we saw in
September, is tenuous,” Fong added.
In October, Chrysler, Jeep and Dodge dealers continue to
offer competitive lease rates on all 2010 model year
vehicles. “Consumers are responding to Chrysler Group’s
return to leasing, appreciating the flexibility this
financing option gives them,” said Steven Beahm, Vice
President–Sales Organization, Chrysler Group LLC." Featured
vehicles with special lease rates through Nov. 2, 2009 are
Chrysler's Town & Country, Dodge's Grand Caravan, Nitro and
Journey, and Jeep's Liberty.