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post #1 of 1 (permalink) Old 08-09-2015, 04:39 AM Thread Starter
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How Fiat Chrysler "got smart on pricing"

How Fiat Chrysler "got smart on pricing"


Fiat Chrysler is boosting profit margins by selling more Ram's, Jeep's and Hellcats and cutting dealer discounts, allowing the automaker to close a huge profit margin gap with General Motors and Ford.

During the second quarter, Fiat Chrysler earned a pretax profit of $1.4 billion (1.3 billion euros) in North America. That’s more than double the $650 million (595 million euros) it earned during the same period a year ago.

Marchionne delivered on profit margin, too, during the second quarter. The company's profit margin was 7.7% -- up from 4.9% last year.
In April, the automaker cut dealer discounts on wholesale pricing.

Dealers now pay 1 percent more for the Chrysler, Dodge, Jeep and Ram vehicles they sell, or about $200 more on a vehicle with a $20,000 invoice. That reduced the spread between the price dealers pay and the sticker price.
Fiat Chrysler transaction prices by brand in July compared with last July

Ram: $42,991, up 4.5%

Jeep: $32,718, up 0.4%

Dodge: $30,381, up 8.8%

Chrysler: $29,585, down 5.8%

Fiat: $23,089, up 2.9%

Industry average: $32,562, up 1.1%


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