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

Article by Christian A., 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.

If you liked the article, share on:

Topics: chrysler, sales

Comments

Recommended

Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
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