Chrysler sales rose less than 1% due to its new philosophy on pricing

Article by Christian Andrei, on August 29, 2010

Sales of Chrysler Group's cars are suffering due to its new philosophy on pricing. Chrysler has been known for providing high incentives and with the change, its customers have not been so keen making purchases.

While it is true that Chrysler Group's sales had risen for the first time in 25 months last February, the increase was actually less than 1%.

It falls short of the 43% increase that Ford Motor Co. had and the 33% increase for General Motors Co.'s four remaining brands. Since 58% of Chrysler's February sales went to fleets, the carmaker didn't really earn that much, considering that it's the least profitable way to sell cars and trucks.

CEO Sergio Marchionne said that for the company to strengthen its brands in the long-term, it will have to decrease its incentive spending.

This is difficult to do when it's still a long way before new products are launched. However, Chrysler did add dealer incentives this month to provide stores with more bargaining room.

Another factor that hurt Chrysler's sales is the loss of regional dealer ad groups. The tight consumer credit has affected sales as well. Last February, Chrysler Group sold 84,449 vehicles, only 35,832 at retail. Sales in February 2008 totaled 150,093. Until the new Fiat-based products start arriving in 2012, dealers have a more challenging time at increasing sales.

Topics: chrysler, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries