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Chrysler US sales, 2019 as a whole: some surprises

Discussion in 'Mopar News' started by Dave Z, Jan 3, 2020.

  1. aldo90731

    Level III Supporter

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    Yes. The 2005 300 was a game changer, both for Chrysler and the entire industry.

    But at FCA, it ain’t good if it wasn’t “invented there.”
     
    #21 aldo90731, Jan 4, 2020
    Last edited: Jan 4, 2020
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  2. aldo90731

    Level III Supporter

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    On average, Alfa Romeo dealers sold 60.9 new Alfas for the entire year. I feel for them.

    By contrast, Lexus dealers averaged 1,490 new vehicles.
     
    #22 aldo90731, Jan 4, 2020
    Last edited: Jan 4, 2020
  3. page2171

    page2171 Well-Known Member

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    How do Alfa dealers even keep the lights on?
     
  4. Dave Z

    Dave Z It's me, Dave
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    My guess on 300 is not that it was sabotaged, but that they took away over-incentives to focus sales on Charger, since only Charger will survive into 2023.

    I don't have an answer for Chrysler.
     
  5. aldo90731

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    Whether FCA does it on purpose or not, what it is doing to Chrysler feels like a slap on the face to many life-long owners on here.
     
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  6. aldo90731

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    Good question.

    Must be using candlesticks. Just like them Fiat dealers...
     
  7. valiant67

    valiant67 ...

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    Alfa is budled with either Fiat or Maserati in the US. So there are a few more sales.
    Bu my bet is used cars are paying the bill.

    The dealer I bought my Fiat from in Atlanta brought used cars from all their other lots to the Fiat site. Used cars probably outnumbered new Fiats 5:1 (and this was back in 2014 when Fiats were selling in higher volumes). The only reason the dealer kept the Fiat franchise was FCA relaxed the rules and let them start selling CDJR from the lot.
     
  8. aldo90731

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    Indeed. Just like Mitsubishi dealers did for years.

    The stand-alone Fiat dealer near my dad in BC doesn’t even sell Fiats any more. It has two leftover Spiders in the showroom and that’s it; everything else is a collection of used vehicles.

    Interestingly, they found a niche bringing unwanted ex-lease EVs from the US, which offer a unique appeal to the environmentally-conscious locals in Vancouver. They had a bunch of relatively low-mile VW e-Golfs and Audi eTrons which, even after swapping the speedometers and what not, and tagging on their dealer profit, still offered incredible value for the money.
     
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  9. FreeLantz

    FreeLantz Well-Known Jeeper

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    As an example, the Alfa store a couple miles from my house also sells Maserati, Fiat, and is a satellite used car lot for the owner's Ford store which is on the other side of the freeway from it.
     
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  10. JavelinAMX

    JavelinAMX Well-Known Member

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    .

    I've seen a good half-dozen Gladiators roundabout my employer's facility in North Phoenix.

    On the flip-side, I've seen a Boat load of Kia Tellurides and Hyundai Palisades ... one of the employees or executive staff members at work drives one.

    Those two seem to have hit a home run. I say that because I "don't get out much" going straight to and from work; and think that if there are quite that many on my 16 mile drive everyday - how many, Total, are out and about on all other roadways?

    And I thought sure there would be something closer to a land-office business for the Gladiator ( among the Jeepers ). The Jeep Pickup was always there with Kaiser and AMC. Then, when Iaccoca obtained AMC, I thought, "You mean, because they had the Dakota you Automatically nix the J-Truck?" A smart person could figure how to sell both from the same parts . And if not right then, you can incorporate that planning during the prep for the next gen Dakota.

    But no.

    { Anyway, Glad they're showing up in the numbers you report, though }

    .
     
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  11. hmk123

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    I know I have asked this before but articles like these always makes me scratch my head. Says the average gross profit margin on a new vehicle is $140:
    5 used-vehicle trends in 2020 (at https://www.autonews.com/used-cars/5-used-vehicle-trends-2020 )

    How does the business model work again for a dealership when it comes to new cars? How can the profit margins be so low on an item costing easily over $25000? Or is that story leaving out things? Is all the profit made with Shelby and Demon markups? :)
     
  12. JavelinAMX

    JavelinAMX Well-Known Member

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    One thing to consider : Dealerships sell other profitable products which are useful in automobile ownership which contribute to their income.

    They also trade among other businesses; some of which is not Iron .

    .
     
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  13. JavelinAMX

    JavelinAMX Well-Known Member

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    Either way : they Did pull the rug out from under it in one way or another. I don't think someone at Corporate can recognize this point in its history without acknowledging volition being at least some part of the process.

    Because of that, I can understand steam coming out of some of the fans' ears when discussing the topic.

    = = = =

    I'm guessing : But I can imagine at some point the Corolla ( for instance ) was not performing quite how they wanted. They kept with it, irrespective; and even in a market biased now toward CUV's - it lives on ... in other words : it got some love from Upstairs when it was needed.
    Some Corollas weren't shining stars .

    .
     
    #33 JavelinAMX, Jan 4, 2020
    Last edited: Jan 4, 2020
  14. 1999 White C5 Coupe

    1999 White C5 Coupe Well-Known Member

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    It’s made charging more than $100 an hour for labor (plus a 5% shop supplies charge), and paying the technician $20 - $25.
     
  15. 1999 White C5 Coupe

    1999 White C5 Coupe Well-Known Member

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    The article states (which I don’t believe) that the gross profit for a mass-market new car is $140 - the gross profit for new trucks (which are vehicles) are much higher. The article doesn't state which category a crossover vehicle falls into.
     
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  16. BASONE88

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    Used cars and finance products.
     
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  17. aldo90731

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    That’s true, primarily on cars. This is the reason automakers and dealers have been pushing hard on trucks for years, and driving up transaction prices.

    Dealers are supposed to supplement their income with service, accessories, parts and financial services. They also get bonuses from the automaker based on units sold, positive customer reviews, and get reimbursed for holding inventory, etc. However, with more vehicles coming out with pre-paid service, and automakers paying lower rates for warranty work, dealers have to keep looking for creative ways to generate income.

    Supposedly, Ram trucks, Wranglers, Gladiators and Grand Cherokees still offer attractive margins to both FCA and dealers.
     
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  18. hmk123

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    Was the new car business always like this? Or is that something that happened over the last twenty years? I guess gross profit means that sales personal and overhead have been paid for.
     
  19. Adventurer55

    Adventurer55 Well-Known Member

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    Dave, while you may be right, but Chrysler Corporation has done this in the past. Ram trucks is an example. After the Dakota launched in 87, there was little interest and little done to full-size Ram trucks. Had Cummins not come along i think the big trucks would've died.
     
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  20. XRT2SRT

    XRT2SRT Well-Known Member

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    Overall, Dodge fell by 8%. Still, the fact that the Journey and Caravan are selling at all is fairly amazing, given their age; and the Charger’s success, with 96,935 sales in a market where sedans are passé, is nothing short of incredible. (As is the fact that a “muscle car brand” has a minivan as its sales leader).
    PERIODT.:)
     

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