Chrysler's Dealer Supply of 40 days reached - Dodge Nitro Forum
Chrysler/Dodge/Jeep News Find out the latest scoop here!

 
LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 08-04-2009, 12:28 PM Thread Starter
Super Moderator
 
rickaren's Avatar
 
Join Date: Nov 2006
Location: Indiana
Posts: 22,765
Garage
Lightbulb Chrysler's Dealer Supply of 40 days reached

Chrysler Reduces Vehicles at Dealers to Goal of 40-Day Supply




Aug. 4 Chrysler Group LLC, the U.S. automaker run by Fiat SpA, reached its goal of a 40-day supply of vehicles on dealer lots under a plan to reduce the need for sales incentives.

Dealerships had 136,734 cars and light trucks at the end of July, a 68 percent decline from a year earlier, the Auburn Hills, Michigan-based company said yesterday. All of its assembly plants are operating at full production, Kathy Graham, a Chrysler spokeswoman, said today.

Chrysler, the third-largest U.S. automaker, is adopting a system similar to that of Honda Motor Co. where it seeks to produce only enough vehicles to meet current demand. Having fewer unsold cars and trucks on dealer lot lets the company spend less on offers to lure consumers.

“It should allow them to reduce incentives down the road,” said Stephanie Brinley, an analyst at AutoPacific Inc. in Troy, Michigan. “They need to be more profitable and they can’t do that with too much inventory.”

Previously, Chrysler encouraged dealers to buy more vehicles and then used offers such as rebates and discount financing to help sell them.

“We’ve been working towards a ‘pull’ system by reducing our inventory, and levels are now at their lowest point in years,” Steven Beahm, vice president in charge of the sales organization, said in a statement.

Chrysler was helped by stronger demand for autos last month, as the federal government offered as much as $4,500 to buyers who traded in older, less fuel-efficient vehicles. Chrysler matched that incentive, and its sales last month fell just 9.4 percent from a year earlier. Through June this year, the company’s smallest monthly decline was 39 percent.

The automaker will try to keep inventory on lots at a 45-to-60-day supply, Graham said. The industry benchmark is 60 days, and Chrysler had a 109-day supply in July 2008.

Chrysler shut all its factories in early May after entering bankruptcy and didn’t reopen most of them until June 27. The plants were idled again for two weeks starting July 13 to prepare for 2010 models. Those moves also reduced inventory.

LINK:Chrysler Reduces Vehicles at Dealers to Goal of 40-Day Supply - Bloomberg.com

Rick

Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is offline  
Sponsored Links
Advertisement
 
Reply

  Dodge Nitro Forum > Dodge Nitro News & Polls > Chrysler/Dodge/Jeep News

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Dodge Nitro Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
Chrysler's Next Test rickaren Chrysler/Dodge/Jeep News 0 06-28-2009 10:31 AM
National Dealer Council Letter To Customers rickaren Chrysler/Dodge/Jeep News 0 05-28-2009 10:12 AM
What If My Car Dealer Closes? rickaren Chrysler/Dodge/Jeep News 0 05-15-2009 09:03 AM
Chrysler's Planned Marketing Budget Cut rickaren Chrysler/Dodge/Jeep News 0 05-10-2009 04:54 PM
Chrysler's Unsold Inventory 400,000 rickaren Chrysler/Dodge/Jeep News 0 12-16-2008 02:09 PM

Posting Rules  
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome