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Detroit News updated their Chrysler CS coverage. The Aztek-like (in its basic idea) vehicle, which restyles a minivan to look like an SUV, has reported been approved for sale in April 2003, well over a year beyond its original proposed sale date.
The Sprinter, made by Mercedes but sold in the US as a Freightliner, will be sold by Dodge dealers, according to Motor Trend. The Class 1-2 van, which can carry up to six tons of weight depending on its configuration, can be set up as a passenger or cargo van, replacing the Dodge B-series and competing with the Ford Econoline. Sprinters sold as Freightliners are made in South Carolina at a Freightliner factory. FedEx Express purchased the first 1,900 units made in the US.
The van sells for about $26,000, making it more expensive than the Dodge B-series, but features an efficient five-cylinder diesel with 243 lb-ft of torque (154 hp) and 22 mpg. Diesels also tend to outlast gasoline engines, making them more efficient for constant commercial use.
After losing money in the third quarter, Ford appears to be set to lose enough in the fourth quarter to take a loss for 2001. Ford is following Chrysler in a "cut to grow" strategy.
When fuel economy regulations were first put into place, trucks were excluded because they were almost exclusively used in industry and farming. The "SUV loophole" resulted in three sets of standards - a low 20 mpg standard for trucks (minivans, pickups, SUVs, PT Cruisers), a moderate 27 mpg standard for cars, and a very low "not applicable" standard for heavy duty trucks - such as the Chevy Yukon. While some, including us, have suggested simply eliminating the "SUV loophole" and having the same standard for all vehicles which do not require a special license to operate, the EPA has catered to lobbyists by suggesting a standard which would increase fuel economy demands on a manufacturer by manufacturer basis, with fixed-percentage increases in economy. This would effectively prevent Honda and others from getting into the pickup and SUV business, while rewarding companies which have low average economy or high truck fleets by giving them less stringent standards. On the lighter side, it would greatly help the domestic auto industry in the short term by, in effect, freezing the current car-truck quotas.
120,000 Jeep Libertys are being recalled because, in a crash, a bracket may scrape a sensor wire, leading to a 20 ms delay in inflation. There have been no deaths or injuries related to the problem, according to DCX.
(From a DCX press release, edited): Chrysler retail sales actually rose, with total sales falling due to a lack of fleet sales (this also afflicted GM and Ford, which had net sales increases). The extended warranty was credited for some of the retail uptick. PT Cruiser and Liberty sales remain strong even without financing incentives, though both are limited by production constraints to relatively low volumes. Ram sales, while below last year and far below GM and Ford, have risen by almost one third since last month. In another favorable sign, inventory has been reduced to 455,550 units, a 19 percent reduction from November of 2000. That's a 66-day supply, compared to a 76-day supply at the same time a year ago.
Total minivan sales of 33,981 were up 18 percent, compared to November 2000.
Total Chrysler brand sales of 43,543 were up seven percent, compared to November 2000. (We don't consider this to be a big deal since Plymouth sales went down to nothing.)
Total Jeep brand sales of 40,174 units were up 12 percent, compared to November 2000.
Chrysler Sebring Sedan sales of 4,841 were up 57 percent, compared to November 2000. Chrysler Sebring Convertible sales of 2,506 were up 121 percent, compared to November 2000. [Both were recently redesigned]
Jeep Wrangler sales of 5,274 were up 28 percent, compared to November 2000.
Dodge Caravan minivan sales of 18,618 were up 19 percent, compared to November 2000.
Honda is expanding its Alabama plant to make 30,000 more minivans per year (from 120,000 to 150,000) - most of which will most likely be replacing Chrysler and Dodge minivan sales given a stable market.
To balance our perhaps pessimistic perspective on the prior (following) story, we should note that Ram sales may have dropped due to lack of V6 models. We still do not understand why the Intrepid and 300M are not doing better - both are best in class - for that matter, the Sebring sedan is highly competitive, and the Neon still offers great value and space.
Bill Cawthon was kind enough to provide industry sales figures for November 2001. It is worth nothing that Chrysler has dropped to #5 in car sales, below Toyota and Honda, but above Mitsubishi (not by much). Chrysler's car market share is 5.6%, though when trucks and minivans are thrown in, it goes up to 13%. Note, however, that nearly every other automaker rose in sales during November while Chrysler, offering extended warranties and zero-percent financing, plummeted yet again. Toyota is sure to pass Chrysler by 2004 - indeed, thanks to its minivans, even Honda has a chance to become bigger than the declining Chrysler.
Chrysler's best seller, the Ram, dropped below the Accord, Camry, and Taurus, to be the #7 vehicle overall. The Jeep Grand Cherokee was #9.
GM's new TrailBlazer rocketed up to #13, just below the Caravan. The Liberty managed #19, nestled between the rather nice but maligned Chevy Impala and the Cavalier. The Tahoe actually beat the Liberty despite being much more expensive and not at all thrifty on gas.
As usual, Chrysler cars got trounced. The best seller, the PT Cruiser, is not officially a car, and is pegged at #29 due mainly, we suspect, to production limits. The "official" best selling Chrysler car, the Dodge Neon, eaked out a mere #75, barely ahead of the aged, discontinued Ford Escort and far below such niche vehicles as the Ford Crown Victoria and Subaru Outback - just a bit above the hideously expensive Buick Rendezvous and truly-niche Jeep Wrangler. The Chrysler Sebring sedan couldn't even beat those vehicles, and came in behind the Mercedes C-class. The formerly-hot Chrysler 300M sold fewer units than the Subaru Impreza, BMW 5-series, or even the "do they still make that?" Chevy Astro.
Overall, another depressing month to round out a year of bad news. Perhaps other news sources will make up some happy rumors to balance out these terrible numbers.
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