Chrysler thinks 200 sedan will sell well despite rivals’ big incentives

Article by Christian Andrei, on July 13, 2015

Car manufacturers are forced to engage in an incentive war as midsize car sales continue to drop, according to Chrysler brand head Al Gardner. As a result, profits are declining in this 16-vehicle segment, which includes the Toyota Camry, Honda Accord, Ford Fusion. This affects even the redesigned models. During the first half of 2015, the midsize car segment posted 3.4% lower sales than the year-ago period.

Meanwhile, midsize crossover sales have grown by 3.6% and midsize SUV sales have gone up by 23%. Gardner said that because of competition woes, no car company will be able to meet profit targets. Sales of the Chrysler 200 in the first half of the year have more than doubled. However, it is being compared to last year’s first half when the previous model was in the sell-down period.

Gardner explained that if the segment is down, everybody strives to increase their share and this makes them throw big incentives at potential customers. He said that he doesn’t expect to lose money on the Chrysler 200 but the rest of the segment is pressured to raise incentives when a new car such as the Hyundai Sonata is immediately priced with low APR and cash on the hood.

A week ago, Hyundai offered a $1,750 cash incentive with its base 2015 Hyundai Sonata, with a sticker of $21,975. revealed that a similar base 2015 Chrysler 200, with a sticker price of $22,990, came with incentives of as much as $2,500.

Shipping costs are included in these two price tags. Gardner said that even as the 200’s sales are increasing, its volume can still grow. He said that the 200 has “everything going for it.”

He believes that if more people enter its showrooms or look at its websites to check out the 200, they will find out how great this car is and Chrysler will “win this game.”

If you liked the article, share on:


Login or Create new account to add a comment!


Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016
Say hello to the fastest accelerating production car in the world: the new 2017 Tesla Model S P100D. Powered by a 100 kWh battery, this new model basically outruns almost...
by - October 25, 2016
Ever heard of the “Lynk & Co” automotive brand? Well, it is highly likely people haven’t. This is practically because this is new brand created by the joint venture between...
by - October 25, 2016
Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016