The Chrysler Group will cut deliveries by 90,000 vehicles — roughly a quarter — in the third quarter, the automaker said today. Overall, shipments for the second half of the year will be down 135,000 units from the original plan. Third quarter deliveries had previously been lowered to 380,000 vehicles. That figure will bow be 290,000. Last week, Chrysler said it expects to post report a loss of $1.5 billion for the third quarter of fiscal 2006 — a significant increase over the previously anticipated $600 million loss. “The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles,” the company said during that announcement. The Chrysler Group consists of Chrysler, Jeep, and Dodge.
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09/19, 11:22 AM
posted by:
davidg1977
For a company that relies heavily on SUVs (Jeep line, Durango, Alpine), theyve been under the radar b/c of their Daimler connection. If this was a company that solely relied on Chrysler, Dodge, Jeep and didn’t have a global presence, I’d venture that they’d be in a worse position than Ford or GM.
They have the lowest bargaining position with the unions b/c of their size, they have a huge reliance on SUV’s and very little to speak of in a function driven (construction, hauling, etc) consumption of large trucks. Aside from a relatively safe credit position, again b/c of their German ownership, they’d be up a creek as much as anyone.
Gettelfinger cant possible let the third horse in the race also run all over him especially with his new seat on the DCX working board.
How long does Zietsche let this thing flounder? The 300C is no longer the new kid on the block and the Sebring/Avenger duo doesnt look like it’s going to change the game in the midsize market…
09/19, 1:35 PM
posted by:
Bonquisha Sheneequah Sharkeesha Shi-thead Jackson
I hate Dodge Chrysler Jeep product so I dont care
09/19, 2:10 PM
posted by:
JC Whitless
Dr. Z, I have some advice for you….
Airflow
Don’t build the Hornet microcar, build an Airflow inspired microcar.
Oh and bring Desoto back
09/19, 2:50 PM
posted by:
jimothy
“I hate Dodge Chrysler Jeep product so I dont care.”
And yet, you cared enough to offer this wonderful insight.
09/19, 3:14 PM
posted by:
Bonquisha Sheneequah Sharkeesha Shi-thead Jackson
I’m a caring sharing person
09/19, 3:16 PM
posted by:
MikeFX
Hey, give Chrysler some credit for some of their recent hits: PT Cruiser, then 300C, then Caliber, and eventually Challenger. Leave your comments about stlying at the door, since all of these were something fresh on the scene, got people talking about American cars again, and did very well for their first year at least.
What has Ford put out that has gotten any buzz? I want Ford to do well, but the 500/Freestyle are good cars with no appeal. Then there’s the Edge, already looking old since it was announced over a year ago. Fusion does OK, but it did not create a new segment and never really had any buzz.
So ease up Chrysler for taking a chance with some interesting cars in the past. Although I could not agree more with DavidG about the Sebring/Avenger cars and the ridiculous Aspen SUV. Nasty…
09/19, 5:00 PM
posted by:
davidg1977
What I believe you’ll find in the Ford suite of products is a more lasting (can be translated to bland) design whereas the Fusion will have more lasting design stamina than a 300C or a Charger/Challenger. Mgt should leave the striking (love it/hate it) type stuff to nichey vehicles. I know that the extrapolation got FoMoCo into trouble b/c they relied upon it for too long but a Charger (retro-based replacement for the Intrepid) is going to be old hat in a much shorter time than it’s predecessor did. From a fleet perspective, the Intrepid was a great Taurus killer (although it drove like crud when I had one as a sales car).
I think you’ll see some of DCX’s products requiring more frequent refreshes/redesigns than other GM/Ford products. The tight rope to walk is to keep things fresh without making them fadish (see VW New Beetle) but not making them bland (FiveHundred).
I think a big problem from a Ford perspective is that they have been so starved to create buzz through new product that by the time it hits the showrooms, it’s stale (see MikeFX’s comment about the Edge). As exemplified in the Edge (I still think it will be successful), TBird (really fun looking when debuted but didnt sell for 18months).
GM deserves kudos for their preview of the GMC Acadia/Buick Enclave/Saturn Outlook as they were previewed and will be delivered in less than 12 months.
09/19, 8:59 PM
posted by:
1c3d0g
The Aspen is awesome, I’m sure it’ll sell well. I’ve always liked Chrysler’s styling, it’s really “bold”, it may piss some people off, but that’s what I like about it the most.
09/19, 9:57 PM
posted by:
MikeFX
My only beef with the Aspen is that it was a lazy decision on behalf of DCX. The car is a duplicate of the Durango, except with bling in lieu of plastic. The car will never achieve Escalade status, and DCX should not be focusing energy on this dying breed of vehicle anyway. Who knows, I could be way off base with this one, but I predict it that it is a stopgap until something unique can be designed or it will not catch on and just be dumped altogether.
Doesn’t help that may first car was a Dodge Aspen wagon (brown with wood paneled sides, vinyl seats, AM radio, slant 6 engine) – a real chick magnet.
09/20, 9:24 AM
posted by:
TimG
Say what you wan’t about Aspens; that 6-cyl was a great motor-I had one too.
You realize, childrem, that all of these cuts in production mean no more employee discounts and other huge cuts to reduce inventory. The cars they DO produce will pay higher profits to them, because you and I will be paying more for them.