Chrysler July 2013 Sales: Up 11%. Best July in Seven Years

[Anthony]

Chrysler Group LLC Reports July 2013 U.S. Sales Increased 11 Percent; Best July Sales in Seven Years

• Best July sales since 2006
• 40th-consecutive month of year-over-year sales gains
• Jeep®, Dodge, Ram Truck and FIAT brands each post sales increases in July compared with same month a year ago
• Six Chrysler Group vehicles set sales records in July
• Ram Truck brand sales up 31 percent; largest percentage sales gain of any Chrysler Group brand in July and best July sales since 2007
• All Jeep brand vehicles in production record double-digit percentage increases
• Dodge Charger and Fiat 500 lead their segments in J.D. Power’s 2013 U.S. Automotive Performance, Execution and Layout (APEAL) Study™; Ram Truck brand ranks as the highest non-premium brand in the industry

August 1, 2013 , Auburn Hills, Mich. - Chrysler Group LLC today reported U.S. sales of 140,102 units, an 11 percent increase compared with sales in July 2012 (126,089 units), and the group’s best July sales since 2006.

 

The Jeep®, Dodge, Ram Truck and FIAT brands each posted year-over-year sales gains in July compared with the same month a year ago. The Ram Truck brand’s 31 percent increase was the largest sales gain of any Chrysler Group brand in July. Chrysler Group extended its streak of year-over-year sales gains to 40-consecutive months in July.

 

“We continue to see strong retail sales, particularly with our pickup trucks and SUVs, and that has helped to propel Chrysler Group to our 40th-consecutive month of year-over-year sales growth,” said Reid Bigland, Head of U.S. Sales. “In addition, the all-new Fiat 500L is off to a great start with 962 units sold in its first full month on sale.”

 

The Ram Truck brand sales gain was driven by the 31 percent increase in Ram pickup truck sales. Dodge brand sales were up 18 percent in July, driven in part by the 88 percent increase in Dodge Durango full-size SUV sales. Jeep brand sales were up 2 percent as all Jeep brand models in production recorded year-over-year sales gains in July. FIAT brand sales were up 2 percent in July compared with the same month a year ago.

 

Six Chrysler Group vehicles set sales records in the month of July. Three Dodge brand vehicles – the Dodge Avenger mid-size sedan, Dodge Challenger, and Dodge Dart compact sedan – each recorded their best sales for the month of July. The Jeep Wrangler and Jeep Compass also registered their best sales for the month of July. Sales of the flagship Jeep Grand Cherokee were up 30 percent, its best July sales since 2005.

 

Chrysler Group finished the month with a 66-days supply of inventory (371,889 units). U.S. industry sales figures for July are projected at an estimated 15.8 million units Seasonally Adjusted Annual Rate (SAAR).

 

July 2013 U.S. Sales Highlights by Brand

 

Ram Truck Brand

 

Ram Truck brand sales were up 31 percent, the brand’s best July sales since 2007. July was the fifth-consecutive month in which the Ram Truck brand registered the largest percentage year-over-year sales gain of any Chrysler Group brand. Sales of the Ram pickup truck were up 31 percent, its 39th-consecutive month of year-over-year sales gains and its best July sales since 2006. Sales of the Light Duty Ram pickup were up 25 percent in July, driven by the Crew Cab pickups, while Heavy Duty Ram sales increased 35 percent.

 

The Ram Truck brand in July celebrated the start of production of its new 2014 Ram ProMaster Van at Chrysler Group’s Saltillo Van Assembly Plant in Coahuilla, Mexico. The new 2014 Ram ProMaster is Ram Commercial’s latest addition to its popular vehicle lineup. The ProMaster takes its place in the expanding, purpose-built, full-size van segment with a number of best-in-class features focused on the commercial customer. Coming from a strong background of commercial vehicles produced by Fiat Professional, the ProMaster is based on the Fiat Ducato, which has been in production for more than 30 years. Also in July, the brand introduced its newest model, the 2013 Ram Black Express, distinguished by its all-black exterior.

 

Dodge Brand

 

Dodge brand sales were up 18 percent in July, the brand’s best July sales since 2005 and its 26th-consecutive month of year-over-year sales gains. The Dodge Avenger mid-size sedan and the Dodge Challenger each recorded their best July sales ever, while sales of the Dodge Durango full-size SUV were up 88 percent. The Dodge Dart compact sedan had its second straight month of year-over-year sales gains.

 

For the third-consecutive year, the Dodge Charger has ranked highest in the Large Car segment in J.D. Power’s annual U.S. Automotive Performance, Execution and Layout (APEAL) Study™. Sales of the Charger are up 10 percent this year through July. The APEAL Study measures how gratifying a new vehicle is to own and drive, based on customer evaluations of 77 vehicle attributes of new 2013 model year vehicles. According to J.D. Power, the most appealing vehicles have greater owner loyalty, command higher transaction prices and spend less time on dealer lots before purchase.

 

Jeep® Brand

 

Jeep brand sales were up 2 percent in July, the brand’s best July sales since 2005. All Jeep brand models in production recorded sales gains in July compared with the same month a year ago, led by the Jeep Grand Cherokee. Sales of the Grand Cherokee were up 30 percent, its best sales month since 2005 and largest percentage increase of any Jeep brand model. The Jeep Wrangler and Jeep Compass each had their best sales for the month of July. Sales of the Jeep Compass were up 27 percent compared with the same month a year ago.

 

The new 2014 Grand Cherokee was the winner in July of the 2013 Cars.com/USA Today Midsize SUV Challenge. The Grand Cherokee topped five other popular SUVs. Evaluators included experts from Cars.com, USA Today, Motorweek, and a family representing the average midsize SUV buyer.

 

FIAT Brand

 

FIAT brand sales were up 2 percent in July compared with the same month a year ago. It was the brand’s best July sales since the Fiat 500 was launched in 2011 and its 17th-consecutive month of year-over-year sales gains. The Fiat 500 was ranked highest in the City Car segment in J.D. Power’s APEAL Study in July. Sales of the Fiat 500L, the newest addition to the FIAT brand product lineup, increased 78 percent compared with sales in the previous month of June. FIAT studios across the U.S. began selling the all-new 2014 Fiat 500L in June. The 500L expands the appeal of the iconic 500, with two more doors, accommodations for five passengers, best-in-class interior volume, and advanced European technology.

 

The all-new fully electric Fiat 500e, which went on sale in California in July, was voted “Top Electric Vehicle” by the Northwest Automotive Press Association during its first annual “Drive Revolution” green-car competition in Portland, Ore. NWAPA members tested 17 of the market’s most technologically advanced and fuel efficient models around Portland – including electric cars, plug-in hybrids, and clean-diesel models from both import and domestic manufacturers.

 

Chrysler Brand

 

Sales of the brand’s flagship Chrysler 300 full-size sedan were up 12 percent, the vehicle’s best July sales since 2008. Chrysler brand sales were down 4 percent in July compared with the same month a year ago. Sales of both the Chrysler Town & Country minivan and Chrysler 200 mid-size sedan are up this year through July compared with the same period in 2012. The Town & Country was the highest-ranking minivan in J.D. Power’s recent 2013 U.S. Initial Quality Study.

[RichardJensen]

Dodge brand sales were up 18 percent in July, the brand’s best July sales since 2005 and its 26th-consecutive month of year-over-year sales gains.

 

If you want to understand the abiding skepticism that many on this board hold toward Chrysler, all you have to do is couple this phrase with their reported plans to terminate the brand.

 

When a company manages to make a simple decision appear incredibly complicated, it's not a well run company.

[aneekr]

If you want to understand the abiding skepticism that many on this board hold toward Chrysler, all you have to do is couple this phrase with their reported plans to terminate the brand.

 

"Reported plans to terminate the [Dodge] brand" were rumors. I think the skepticism should be directed toward media outlets that adumbrated those rumors had any factual basis.

[RichardJensen]

Everything regarding Dodge's future is based on rumor at this point.

 

But reports that the Avenger & Grand Caravan are being canceled seem well supported. And dropping 135k of YTD volume with no plans for replacement is not exactly consistent with a plan for the future of the brand.

 

--

 

Frankly, I think Chrysler is, in its own way, as guilty of neglect toward Dodge as GM is toward Chevrolet. Both are 'boring' brands (Challenger, Viper, Camaro and Corvette notwithstanding) that are overlooked in favor of executive vanity projects (Cadillac and the reintroduction of Fiat/Alfa) that, with a more sober and detached perspective, do not justify investment on the scale undertaken.

[jpd80]

Is Dodge slowly making way for an increased Fiat / Alfa presence?

[PREMiERdrum]

Is Dodge slowly making way for an increased Fiat / Alfa presence?

 

That's the way I read it..

 

Fiat: Volume subcompact and compact

Chrysler: Volume midsize and fullsize

Alphfa: Upscale

Jeep: Full range of SUVs

Ram: Truck and commercial vehicles

 

Perhaps they feel that, even at lower volume than Dodge currently sells at, they can charge more for a European branded product, while simultaneously enjoying the economies of scale from selling their ROW lineup in the US and eliminating the Chrysler / Dodge overlap?

 

I think they might be overestimating the mass market appeal of Fiat and Alphfa Romeo. But what do I know?

Edited August 2, 2013 by PREMiERdrum

[silvrsvt]

Perhaps they feel that, even at lower volume than Dodge currently sells at, they can charge more for a European branded product, while simultaneously enjoying the economies of scale from selling their ROW lineup in the US and eliminating the Chrysler / Dodge overlap?

 

I think they might be overestimating the mass market appeal of Fiat and Alpha Romeo. But what do I know?

 

 

I think the big issue is if Alpha is considered an upbrand or Luxury car like Caddy or Lincoln or whoever...there is still going to be alot of overlap with them and Chrysler since they'll be sharing the same products? A non-performance 300C can max out around 50K or so. I've always envisioned Alpha as more of a sporty brand with coupes and maybe a mid-sized car...

[fordmantpw]

I think they might be overestimating the mass market appeal of Fiat and Alpha Romeo. But what do I know?

 

I would agree with you. How many Americans know what a Fiat or Alpha Romeo are? It's like starting two entirely new brands in the US. Plus, there are plenty "buy American" folks who won't buy a Fiat or Alpha, but would buy the exact same car with a Dodge badge slapped on the front of it.

[RichardJensen]

The fact that all of you just typed Alpha instead of Alfa is pretty telling all by itself.

[PREMiERdrum]

The fact that all of you just typed Alpha instead of Alfa is pretty telling all by itself.

 

/shame.

[fordmantpw]

/shame.

 

^^^ What he said.

[EBFlex]

Great to see Chrysler doing so well. Their products are top notch. Hard work does pay off. Their transformation has been astounding through their C.11.

 

And a bunch of car guys can't even get 'Alfa' right. That's as bad as the snobs that say "Porsch" rather than the proper name of "Porsche"...there are two syllables there, not one.

[Anthony]

Infiniti

[RichardJensen]

Their transformation has been astounding through their C.11.

 

Yeah, it's pretty amazing what you can do when the government gives you like 35% of a company for free.

[RichardJensen]

Although, all cynicism aside, Chrysler has, IMO, done better than GM with their post-bankruptcy strategy-------------in the short term.

 

I think the mid-long term outlook for Chrysler is as bad as GM based on poor management strategies. Neither GM's strategy for Cadillac and Chevrolet nor Fiat's strategy for Alfa, Fiat, and Dodge reflect a read on the marketplace that would be reasonable to an independent party.

 

In short, I think they both need a dose of realpolitik.

Edited August 4, 2013 by RichardJensen

[EBFlex]

Yeah, it's pretty amazing what you can do when the government gives you like 35% of a company for free.

 

You are a bitter person. God forbid we compliment them for not only getting things right but also making very nice and exciting products...probably the most exciting of the big 3.

 

And again, you rag on GM and Chrysler to no end, but get very defensive when some people say they don't think Lincoln is profitable at this time.

 

Do you work in the industry? Do you have knowledge that the regular lay person doesn't? Are you a consultant for companies of this size?

 

What is it that you do?

Edited August 4, 2013 by EBFlex

[Anthony]

... Fiat's strategy for Alfa, Fiat, and Dodge...

 

 

..and that is?

[RichardJensen]

..and that is?

 

Expanding Fiat to a fuller lineup and reintroducing Alfa Romeo when, short--and long--term profits are more easily and reliably obtained from a brand that is not as interesting to the executives: Dodge.

 

One need only look at the difference in outcomes and efforts among GM, Chrysler and Ford. Of the three companies, Ford has certainly taken a different path with the Ford brand than GM has taken with Chevrolet--or Chrysler with Dodge. I do not think that the difference in profits and margins are unrelated to Ford's "Ford-first" approach to their brand portfolio.

Edited August 5, 2013 by RichardJensen

[jpd80]

The fact that all of you just typed Alpha instead of Alfa is pretty telling all by itself.

Not I sir, posted correctly without editing...

[grbeck]

I would agree with you. How many Americans know what a Fiat or Alpha Romeo are? It's like starting two entirely new brands in the US. Plus, there are plenty "buy American" folks who won't buy a Fiat or Alpha, but would buy the exact same car with a Dodge badge slapped on the front of it.

 

Outside of Italy, Alfa isn't really that big of a deal anymore in Europe. Even Fiat is pretty much an also-ran in most of Europe.

[silvrsvt]

Its pretty simple...reason Ford is in better shape then other American automakers is that they have a plan they are excuiting that is working so far...

 

Cliff Notes:

• Make the best product in its segment with leading MPG and/or performance with good styling
• Kill off Mercury for higher end Fords that cost less to develop and have higher profit margins because of that. Also make lower end Ford products that have better features that don't make them "Cheaped" out.
• Kill off products that overlap with other products or just a waste of energy/money.
• NOT being dependent on a single product to make money...every Product pays for its self or makes $$$
• Not having to worry about having a Luxury make money with right away...I see Lincoln as Chocolate frosting on the Ford profit cake. Just that the formula of making that frosting is in flux now.

[akirby]

You nailed it.