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Chrysler reported U.S. sales of 200,421 units in April 2002, compared to 187,119 in April 2001, an increase of three percent. Cars rose by 4 percent. Dodge sold 33,900 Ram trucks last month, led by the new 1500 series with 26,043 units. Chrysler finished the month with 472,561 units in inventory, a 59-day supply, compared to 450,641 units in inventory, a 58-day supply, in April 2001.
GM posted a substantial sales hike, gaining 13 percent over last April (GM's retail sales were up 15 percent over year ago levels and GM retail sales through April were up 7 percent.). While Ford fell 7 percent, Chrysler sales gained 3 percent from last April, partly on the strength of increased Ram truck sales (presumably due to the recent redesign), and partly on 4 percent higher car sales.
The Ram, which is Chrysler's best seller (, increased by 21 percent over last year. The Sebring/Stratus sedans, Concorde, Prowler, Grand Cherokee, and Viper all posted impressive gains. The PT Cruiser also gained 8 percent, presumably due to increased production rather than demand, while the Caravan rose a slender 2 percent in sales (while the Voyager and Town & Country both declined for a 2 percent overall loss of minivan sales).
Not surprisingly, the Durango - now facing stiff competition from the TrailBlazer - fell, along with the Dakota and soon-to-be-discontinued Ram wagon/van. The Wrangler also lost ground, along with the Mitsubishi Stratus/Sebring coupes. On the lighter side, the Liberty beat last year's Cherokee sales by a good margin.
Though a gain was posted for the Neon, it's worth noting that if Plymouth Neon sales are included for last year, sales declined by about a thousand units since April 2001.
Chrysler PR is very upbeat on the situation, though we note that Chrysler is losing ground in the important minivan market - with Honda adding a five-speed automatic and 240 horsepower engine, and Chrysler still not adding the 3.5 V6 or any new features. However, the increase in Chrysler Concorde sales is very good news.
According to recent reports, DCX has indicated that the Belvidere plant, currently home of the Neon, will remain open after the Neon switches to its new (according to Chrysler, Mitsubishi-based) platform around 2005-2007.
DCX has set up an new rule that any new "mainsteam" Dodge must sell 100,000 units per year to be produced, effectively killing off the M80 (based on a shortened Dakota platform) and the Razor. Both were big hits among car show attendees.
The new rule is intended to reinforce Dodge's role as, well, Plymouth - the mass sales division. Aside from the Viper and PVO team modified versions of mass-market cars, Dodge must project sales of 100,000 vehicles per year to produce a new vehicle. (By this standard, the PT Cruiser would never have been produced - nor would the original Charger or Challenger.)
This rule is said by Automotive News, which broke the story, to be the result of cost cuts, including the slashing of Chrysler's vehicle development budget from $42 billion to $30 billion (even as costs increase to reengineer existing vehicles so they can use Mercedes parts and architectures, and as Chrysler takes on development of telematics systems for Mercedes and internal use).
In the case of the M80, the platform would have been too expensive, according to Dodge. The top price for the M80, fully loaded, would be $20,000 to achieve strong volume. The M80, as designed, was projected to sell about 40,000 units per year, though it was never even tested in customer clinics. To achieve the desired price point of $15,000 base would require using a "clean sheet" design rather than a heavy, modified Dakota.
The article is here. It also answers our question of the Razor's platform - it was apparently unique, not a Dodge, Mitsubishi, or Mercedes. It is also no longer being considered for production.
Chrysler's third publicly-shown hybrid-electric vehicle debuted today, featuring "Through-the-Road" (TTR) technology (see our section on the Dodge Contractor for details). This powertrain beats the performance of comparable gasoline engines, while improving gas mileage by 20-30 percent and reducing emissions. The Sebring has a 2.4 liter gas engine coupled with an electric motor and battery pack, and accelerates to sixty in 9.1 seconds (vs 11.7 seconds with the 2.4 engine alone) despite considerably better gas mileage. The vehicle has four-wheel drive capability, since different wheels are driven by gas and electric power, as well as regenerative braking.
The system is called TTR (Through-the-Road) because there is no physical connection between the front and rear axles or the engine and motor. The two are controlled and coordinated by computer, responding to changes in the vehicle's traction coupled through the road.
General Motors has purchased much of a company it helped to start, Daewoo Motors. For $251 million, GM gained control of two of Daewoo's three assembly plants in South Korea, one in Vietnam, and nine Daewoo sales units (not the US unit). The plants and sales units will be set up as part of a joint venture, of which GM will own 42 percent, Daewoo creditors will own one third, and other automakers will own one quarter. Ford had originally bid $7 billion for the company. The new joint venture will assume $573 million in operating liabilities and $1.2 billion in debt, but not require GM to take on Daewoo's full $18 billion of debt.
The Atlanta Dragway has been a place of firsts for Mopar Parts Dodge R/T Nitro Funny Car driver Dean Skuza. The Brecksville, Ohio resident grabbed his first No. 1 qualifier during the 2000 season and made his first final-round appearance in his rookie season of 1994, losing to John Force. Skuza will be an in-studio guest of RPM2Night on Wednesday, May 1.
Gene Wilson qualified for his first national event at last weekend’s Mac Tools Thunder Valley Nationals at the Bristol (Tenn.) Dragway, falling to eventual race winner and defending NHRA Pro Stock World Champion Warren Johnson in round one.
Darrell Alderman is one of only six Pro Stock drivers to qualify for every NHRA national event this season. Alderman collected the No. 1 qualifier for the 1991 race in Atlanta.
TV times:
QUALIFYING: Sat., May 4; 9-11 p.m.; ESPN2 FINAL ROUND: Sun., May 5; 5:30 p.m. – 7:30 p.m.; ESPN2 REPEAT: Tues., May 5; 11:30 p.m.-1:30 a.m.; ESPN2
Courtesy David Harris
According to a variety of sources, morale continues to be an issue at Chrysler, with the company reporting that employee survey results have remained essentially unchanged since massive layoffs and plant closures were first announced. A number of employees have privately disclosed their feelings that morale is low, and that company practices are worsening rather than improving as time goes on. Chryslertakeover.com has been covering the "non-spun" side of DCX-related news, while the more mainstream news media have simply passed along press releases from DCX PR and CEO Juergen Schrempp. The Wall Street Journal has also had more unbiased coverage, noting the down-side of DCX financials.
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