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AN: FCA reports December sales

Discussion in 'Mopar / FCA News' started by Allpar News System, Jan 5, 2015.

  1. valiant67

    valiant67 ...

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    I think the poster must have meant December 2013 vs. December 2014 only? Certainly not true for the whole year.
     
    AlfaCuda likes this.
  2. TripleT

    TripleT Allpar Legacy

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    Really!?!!? You better check your margins... Caravan's are nothing more than Cash flow

    Ram was not split for that reason.. the reason is gone but it is doing pretty good.
     
  3. valiant67

    valiant67 ...

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    Please, then inform me of the margin (or loss) on a Grand Caravan. Enlighten us all.
     
  4. AlfaCuda

    AlfaCuda Well-Known Member

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    Sorry I meant for the month.
     
  5. Stratuscaster

    Stratuscaster Vaguely badass...
    Staff Member Level III Supporter

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    The doom and gloom in this thread is oppressive. Moreso when we KNEW that the drop in overall Dodge brand sales was not only expected, but PLANNED.
     
  6. Bran

    Bran Well-Known Member

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    December:
    Mexico ~ 3,050
    Canada 4,888
     
  7. DAGAR

    DAGAR Active Member

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    Valiant, It's fine to be concerned and there's certainly some risk in the re-positioning of Dodge, but Dodge is much more likely to survive as a moniker if the brand is defined in such a way that new people become impassioned about it. This is more likely to be accomplished by having SRT, Hellcat, Charger, etc. than Caravan. Is a minivan (that still exists anyway) really the vehicle needed to create brand passion? Or the Avenger for that matter? No, they dilute the message. You need to have everyone thinking Dodge = Performance. Only then can you either build a lasting brand with meaning or of course squander that equity in the future by putting out a bunch of vehicles that don't live up to the promise but sell on the perception (see jeep).
     
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  8. CDJSalesPro

    CDJSalesPro Allpar Legacy

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    Exactly.....Chrysler just had its best year in almost a decade.....and some on this site are again finding ways to spin it into somehting negative....
    [​IMG]
     
    caine440, Morty, SouthPawXJ and 8 others like this.
  9. TripleT

    TripleT Allpar Legacy

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    Enlighten yourself... you made the assumption that it make a profit. Go look at the transition cost vs it nearly identical model with different chrome grill on the front.

    Pretty Easy Dodge is not longer the volume brand.... If that is how you measure success... make a Wordfile, type in it the Dodge is Domed (Doomed for those who don't know the Joke)

    Ctrl-C then Ctrl-V Post it every month for the next 5-10 years when monthly sales are posted. The role of Dodge is not to turn volume and cash flow.... you want to follow the GM cash flow model then buy a high china content GM model.

    I for one am a Dodge Fan.... my Grand father worked for Maxwell, my father his Summer at Chrysler, and grew up near Kokomo.... so it in my blood and I tell you what I excited about Dodge becoming a performance brand and not selling Grandma Caravans grocery getters. I cringe at them making low margin cashflow cashers... I want capable, well performing, high dynamic models. If I am a Lemming I shop based on volume I would go buy a Camry or Accord appliance...... welcome vehicles the have passion built into them and that is not any Minivan.

    so go ahead Ctrl-V all you want if it make you happy.
     
  10. Dave Z

    Dave Z It's me, Dave
    Staff Member Level III Supporter

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    Chrysler’s (differentiating from Maxwell, at times) past is not one of the cheapest. That was Ford. Chrysler and Plymouth both cost a little more than competitors but remained better values. Dodge Bros stunk on specifications but was a good value.

    I have no problem with volume but Dodge will not do well with undifferentiated cars. There is too much prejudice against them. They need a real identity since reliability is apparently seen as the province of the Japanese and, oddly, Ford.
     
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  11. Mike V.

    Mike V. Mopar-nac The Moderator

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    Still haven't made up the 5000 missed on the U.S. projection. ;)

    Like I have said, it will be close and I hope they get it... It ain't official until it's official.

    Mike
     
  12. Mike V.

    Mike V. Mopar-nac The Moderator

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    And they ignored the positive post that ther are things that appear to actually be in the works ;)

    Mike
     
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  13. JKU12

    JKU12 Well-Known Member

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    Well, they were at 596k in 2013, expected a drop in 2014, and then a slow ramp up to 600k in 2018. Reading between the lines, going from 574k in 2014 to 600k in 2018 is a REALLY slow ramp up if we expect sales increases every year. I would venture a guess they plan on no growth, or maybe even subsequent small contractions in the next 1-2 years as old products like GC and Avenger drop off but before new products kick in 2016-2018. Once again, they've been very transparent about this.
     
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  14. TripleT

    TripleT Allpar Legacy

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    Yes, its pretty simple FCA NA doesn't have the capacity to play the volume cashflow games... it just doesn't exist... an oh what a volatile game to play it is absolutely dependent on turning volume no matter what the economic conditions at the time.

    They have to maximize $ per vehicle produced
     
  15. Mike V.

    Mike V. Mopar-nac The Moderator

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    Silverado sold 57,837 in December 2014

    Mike
     
  16. valiant67

    valiant67 ...

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    OK, I figured you were just guessing. If they were losing thousands of dollars per Grand Caravan as some want us to believe, they would stop Grand Caravan production right now. They would not wait for the model changeover. Instead they are either making money on Grand Caravan (granted less than per Town & Country), breaking even on Grand Caravan or losing a small enough amount that the increased margins on Town & Country (because of reduced fixed costs due to volume, that ugly word again) make up for the losses.

    This is purely my opinion, but I doubt they seriously studied the cost/profit model of making two unique vans that justified keeping both going. Instead they saw everyone else offering only one minivan and a slew of CUVs so that has to be the way to go. No more market innovations, just play follow the leader. Chrysler created niche markets in the past (convertibles and minivans for example, extend it to the just-before Chrysler era Jeep and include the original small SUV Cherokee) that turned into great profit centers. That attitude is gone.
     
  17. JKU12

    JKU12 Well-Known Member

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    You actually think that a company of that size is making product decision based pure guess work or follow the leader? Whether or not their direction works or doesn't is always an unknown. But to guess that a company would make a decision without that type of analysis seems ludicrous.
     
  18. TripleT

    TripleT Allpar Legacy

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    They did seriously study and it didn't take long... and no one is claiming that the Caravan doesn't make some margin.... it is whether it makes competitive margin against other vehicles vying for the use of the capacity and development dollars....

    Then you lost me... how in the world is making a identical model with a different grill and different branding exactly filling a niche.... and if it is filling a niche and 5-10K less margin then let someone else have it. The object is it turn the maximum margin per unit.... there is no lose of the attitude... making a 707hp 4 door is a niche as you get and in DAMN good way.. Slapping Dodge on Chrysler and call it innovative strikes me a plain silly.....
     
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  19. DAGAR

    DAGAR Active Member

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    First, I'm sure that analysis was absolutely done and compared to the potential profit of instead having one van and a CUV. Doing 2 vans and a CUV might very well have been the most profitable option IF they had existing unused plant capacity - which they don't, so then you go with the product mix you think can generate the most profit within your limited plant capacity.
     
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  20. Mopartial

    Mopartial Fits and Finishes

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    Or sell both Chrysler and Dodge, as their assembly plants are now becoming more brand-exclusive.
     

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