May: Chrysler’s best retail month of 2009; overall down 47%

Posted on June 2nd, 2009 • by Bill Cawthon

Chrysler, Dodge and Jeep brands posted double-digit retail sales gains compared to April; Jeep Wrangler sales continued their upward trend.

Chrysler LLC today reported May U.S. total sales of 79,010 units, representing the best retail sales month of 2009. Compared to May 2008, retail sales decreased 30%, but Chrysler’s retail performance was better than the industry average. During the month of May, Chrysler LLC did not produce any vehicles for fleet sales which resulted in a fleet sales reduction of 90 percent year-over-year for the same period.

“We are pleased that consumers responded to Chrysler’s reorganization by purchasing our products, resulting in our best retail sales month of the year,” said Jim Press, Vice Chairman and President – Chrysler LLC. “Overall our sales were above expectations during this month of transition.”

On June 1, the U.S. Bankruptcy Court approved the sale of the majority of Chrysler LLC’s assets to a new company, Chrysler Group LLC in alliance with Fiat S.p.A.

“The uncertainty that has been surrounding Chrysler for the last few months is coming to an end, and a vibrant, new company is beginning to take shape,” Press added. “One that will better serve our customers and dealers with a broader and more competitive lineup of environmentally friendly, fuel-efficient, high-quality vehicles.”

May Sales Highlights

Dodge brand retail sales increased 23 percent compared to the previous month, Jeep brand retail sales were up 21 percent compared to April 2009, Chrysler brand retail sales improved 32 percent compared to the previous month.

“May was a very encouraging retail month for Chrysler and the industry,” said Steven Landry, Executive Vice President North American Sales and Marketing, Service and Parts – Chrysler LLC. “Retail sales for the industry came in stronger than expected and our retail performance during our restructuring was even stronger than the industry, giving us optimism that the market is showing signs of life.”

“Beginning this month we are pleased to offer special finance options to our customers through our new preferred lender, GMAC Financial Services,” Landry added. “Nearly all our dealers are now activated for retail business through GMAC Financial Services.”

Chrysler LLC today announced enhanced June incentives that appeal will to what consumers want, and reflect in the bottom line price of a new Chrysler, Jeep or Dodge vehicle .

Beginning June 2, Chrysler LLC is pleased to offer zero percent financing for 60 months through GMAC Financial Services on select 2009 model vehicles, or up to $4,000 Consumer Cash on 2009 model vehicles. In addition, current Chrysler LLC vehicle owners are eligible for $1000 Owner Loyalty cash on select 2008 and 2009 Chrysler, Jeep and Dodge vehicles. These offers are in addition to the $1000 Credit Union Bonus Cash on select products for qualified credit union members who finance their new vehicle purchase through a participating Credit Union under the Invest in America program These incentives are valid through July 1, 2009.

Compared to the same time period in 2008, Chrysler LLC’s total sales decreased 47 percent. The Company finished the month with 260,407 units representing an 86 day supply. Inventory is down 37 percent compared with May 2008 when it totaled 412,009 units.