There was very little little good news for any of the Chrysler Group's divisions during December in the United States as its sales dropped 4 percent year-on-year although the overall market saw a strong surge in registrations. Chrysler Group has reported total U.S. sales for December of 86,523 units meaning it finishes a very difficult sales year with 931,402 units sold, a decline of 36 percent compared with 2008. Sales however did increase 36 percent compared to November.

While Chrysler's sales dipped 4 percent last month, its Detroit rival Ford surged 32.8 percent, and other key rivals also gained ground: Toyota (+32 percent), Honda (+24.5 percent) and Nissan (+18.2 percent). GM, which like Chrysler went through a bankruptcy transition last year, also lost ground, down 6.1 percent. Both Chrysler and GM are heavily reliant on discounting and analysts believe that up to half Chrysler's sales last month may come from the profit-squeezed fleet sector. Chrysler's inventory is down 55 percent compared with December 2008, with 178,538 units in inventory, representing a 58-day supply.

Eleven Chrysler Group Vehicles saw year-over-year sales increases in December while Dodge car brand sales increased 25 percent compared with December 2008. The Dodge Caliber (up 83 percent, 5,389 units), Avenger (up 85 percent, 3,799 units), Charger (up 16 percent, 6,273 units), Journey (up 61 percent, 6,872 units) and Grand Caravan (up 24 percent, 8,563 units) all increased sales compared with December 2008. For the Chrysler brand, the 300 (up 20 percent, 4,452 units), Sebring Sedan (up 19 percent, 3,500 units), Sebring Convertible (up 47 percent, 937 units) and Town & Country minivan (up four percent, 8,465 units) increased versus December 2008, while for Jeep, the Patriot (up six percent, 2,759 units) and Liberty (up two percent, 4,609 units) sales increased year-over-year. In December, overall Mopar U.S. net sales increased 8 percent compared with November 2009. Compared to the same time period last year, service contracts per new unit sold increased nine percent.

The only two models in the Chrysler Group to post year-on-year gains were Dodge's Journey minivan and its niche Challenger sports car. Both these cars came on stream during 2008 so the year-on-year data is slightly misleading, while the Jeep Wrangler has also had a decent year, losing just 3 percent compared to 2008. Probably most worrying was the slump at the newly split away Ram, a new brand name which covers the former Dodge trucks: it gained no bounce despite having new models introduced into the range and was down 33 percent in December to end the year down 32 percent.

The only positive for the Chrysler Group last month was an substantial increase in its sales if taken compared to the previous month, November, with 20 of 24 Chrysler Group vehicles posting rises. Jeep brand sales increased 36 percent compared with the previous month with he entire lineup posting month-over-month increases. Chrysler brand sales increased 79 percent compared with November 2009 and the Sebring Sedan, Sebring Convertible, 300, PT Cruiser and Town & Country all had month-over-month sales increases. Dodge car brand sales increased 43 percent compared with November 2009, with the Caliber, now with a new interior for 2010, Avenger, Charger, Challenger, Viper, Journey, Caravan and Nitro all improving month-on-month increases. Ram Brand sales increased 14 percent and Ram pickup sales increased 23 percent versus November.

“As we kick off the new year, Chrysler Group continues to build momentum with some of the best products in the marketplace, and we are enthusiastic about the new products coming this year,” Fred Diaz, President and Chief Executive Officer–Ram Brand and Lead Executive for the Sales Organization, Chrysler Group, said in a written statement. “Our great Chrysler, Jeep, Dodge and Ram products are being recognised by opinion leaders in the industry, and consumers are responding in a positive way. In 2010 the company will continue to earn the trust of consumers with exciting, high-quality vehicles that are priced right.”

Incentives

Chrysler Group has today announced “Zero Percent Financing” for almost all 2010 model year vehicles and the expansion of its “Invest in America” partnership with more than 90 million Credit Union members in the United States. The Credit Union member-preferred pricing program has been expanded to include all 2010 model year vehicles. The incentives announced today are valid through March 1, 2010. “Your local Chrysler, Jeep, Dodge and Ram dealer has award-winning cars and trucks in stock that just became more affordable,” said Steven G. Beahm, Vice President, Sales Operations – Chrysler Group LLC. “Most consumers will qualify for 0 percent financing available through GMAC Financial Services, and we also are offering attractive lease rates on some of our best-selling vehicles.”

Chrysler Brand
Beginning today, consumers purchasing Chrysler brand vehicles can choose 0 percent financing for up to 60 months or 1.9 percent financing for 72 months through GMAC Financial Services, or consumer cash of up $3,000. In addition, consumers who purchase a Chrysler 300 can receive “no charge” all-wheel drive. Also, consumers who purchase a Chrysler 300 can choose a “no charge” HEMI engine in lieu of consumer cash or 0 percent financing.

Jeep Brand
Starting today, consumers who purchase a Jeep brand vehicle can choose 0 percent financing for up to 60 months or 1.9 percent financing for 72 months through GMAC Financial Services or consumer cash of up $4,000. Current Jeep owners who purchase a Jeep Liberty, Commander or Grand Cherokee also qualify for $500 owner loyalty bonus cash.

Dodge Car Brand
Beginning today, consumers purchasing Dodge brand vehicles can choose 0 percent financing for up to 60 months or 1.9 percent financing for 72 months through GMAC Financial Services or consumer cash of up $3,000. In addition, consumers who purchase a Dodge Charger can receive “no charge” all-wheel drive. Also, consumers who purchase a Charger can choose a “no charge” HEMI engine in lieu of consumer cash or 0 percent financing.

Ram Truck Brand
Starting today, consumers who purchase a Ram truck can choose 0 percent financing for up to 60 months or financing as low as 1.9 percent for 72 months through GMAC Financial Services or consumer cash of up $3,500.

Leasing
Chrysler Group is offering attractive lease rates on several products, including: Jeep Wrangler Sport two-door 4x4 for $229 per month with approximately $2,800 due at signing: Dodge Journey SE for $249 per month with approximately $2,800 due at signing; Chrysler Town & Country LX for $289 per month with approximately $2,900 due at signing; and Ram 1500 Quad Cab ST 4x4 for $299 per month with approximately $2,900 due at signing.