Hello, Allpar Forums member or visitor! If you were a member, you would not see this ad!

Register or log in at the top right of the page...

  1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

FCA sales down on fleet drop

Discussion in 'Mopar News' started by Dave Z, Dec 1, 2017.

  1. DAGAR

    DAGAR Active Member

    Joined:
    Sep 21, 2014
    Messages:
    1,344
    Likes:
    1,896
    Largely right, Erik. Capability to do it, absolutely - capacity, sort of, will definitely not. I don't want to get into too many specifics, but a decision to add the CUV to the other 2 vehicles would first require a shutdown to tool. All 3 CAN be built together, but the plant is not currently tooled for the CUV. So that means current lost capacity which results in lost revenue at the same time cash is being spent for the overhaul. Now to make up for the lost production, they could add back the third shift, but once Caravan goes away, they might well need layoffs until portal is ready so that likely would not happen which in a nutshell would mean adding Atlantic now would permanently reduce the number of cash cow caravans you could sell since it has an expiration date and burn through cash that could have paid down debt. Long story, but that is why the decisions have been made.
     
    Prabhjot, somber and Dave Z like this.
  2. BobbiBigWheels

    BobbiBigWheels I'm likely at work...
    Level 2 Supporter

    Joined:
    Jun 2, 2016
    Messages:
    2,524
    Likes:
    3,240
    Rebates dictate sales - can say 100% that incentives steer a client from Renegade -> Compass -> Cherokee. Close enough in size to each other that a good salesman can steer them to the better deal.
     
  3. valiant67

    valiant67 Rich Corinthian Leather
    Level III Supporter

    Joined:
    Jan 7, 2003
    Messages:
    31,636
    Likes:
    10,867
    It's rather short-sighted that these upgrades weren't made when the plant was re-tooled for Pacifica. The CUV has been off and on for that long.
     
  4. BobbiBigWheels

    BobbiBigWheels I'm likely at work...
    Level 2 Supporter

    Joined:
    Jun 2, 2016
    Messages:
    2,524
    Likes:
    3,240
    Also can someone post CAD numbers? I never know where to look.
     
  5. Erik Latranyi

    Level III Supporter

    Joined:
    Aug 20, 2003
    Messages:
    10,789
    Likes:
    10,070
    I know it will not happen until they need to retool for a Pacifica refresh.

    Secondly, I just want to be clear, because some tried to claim that Grand Caravan needs to exit first before we get a CUV.

    Third, if this CUV is as great as it should be, then they should be making even more money with Grand Caravan, Pacifica and CUV all at once.
     
  6. DAGAR

    DAGAR Active Member

    Joined:
    Sep 21, 2014
    Messages:
    1,344
    Likes:
    1,896
    OK, nobody is getting the price they list. Too many of those rebates are mutually exclusive:
    • $12,250 of the $15,415 is various consumer incentive programs meaning that the dealer is knocking off $3,165 from their potential profit (likely made up through factory to dealer incentives)
    • to get the $12,250 you can't buy the vehicle for the price given because you must lease or you lose $1000
    • but wait you can't lease it you must buy it or you lose $1000
    • no problem you are trading in a Toyota or Honda minivan, so you get a $1000, but then of course you lose $2500 if you aren't a returning FCA lessee
    • by the way you also need to have a non-prime credit rating and accept finance at standard (high) interest rates through Chrysler Capital to get the mutually exclusive conquest lease and purchase financing $1000
    • and I hope you are both a returning veteran and USAA member or kiss $1000 goodbye
    • there are many more exclusions, but I think this illustrates the problem well enough
    • The bottom line is that for most people this vehicle will be priced around $38,000 - $39,000 a select few will be able to get it for a few grand less; Nobody is buying it at $28,575
     
    dodgeatheart, Dave Z, Tomguy and 2 others like this.
  7. UN4GTBL

    Level 2 Supporter

    Joined:
    Jan 7, 2006
    Messages:
    7,916
    Likes:
    2,557
    FYI - 2017 Pacificas don't have CarPlay/Android Auto
     
  8. UN4GTBL

    Level 2 Supporter

    Joined:
    Jan 7, 2006
    Messages:
    7,916
    Likes:
    2,557
  9. UN4GTBL

    Level 2 Supporter

    Joined:
    Jan 7, 2006
    Messages:
    7,916
    Likes:
    2,557
    I got dizzy just reading that lol!
     
  10. BobbiBigWheels

    BobbiBigWheels I'm likely at work...
    Level 2 Supporter

    Joined:
    Jun 2, 2016
    Messages:
    2,524
    Likes:
    3,240
    November and December had FCA screwing with us a the dealership level with intentionally misleading incentives:

    "25% Off MSRP on Ram 1500 and up to $15,000 in savings"
    I had literally 3 trucks in inventory that qualified for 25%, and of those they were base models that had a $10,000 or so discount.

    This month "0% Financing and up-to $9500 Off Ram 1500"

    Well actually it's 0% with $2500 Off or 4.19% with $9500 Off.

    ...then we have to defend that we at the dealership level aren't the greasy ones, FCA chose to put those ads in the market.
     
  11. DAGAR

    DAGAR Active Member

    Joined:
    Sep 21, 2014
    Messages:
    1,344
    Likes:
    1,896
    ...yep and so long as you don't advertise a price based on incentives that you know you can't combine, you're one of the good ones! :D
     
    Prabhjot, somber and Erik Latranyi like this.
  12. BobbiBigWheels

    BobbiBigWheels I'm likely at work...
    Level 2 Supporter

    Joined:
    Jun 2, 2016
    Messages:
    2,524
    Likes:
    3,240
    We would never - just creates heat.
     
    somber and Erik Latranyi like this.
  13. Tomguy

    Level 2 Supporter

    Joined:
    Oct 4, 2011
    Messages:
    1,024
    Likes:
    614
    Guess that's a false advertisement then, shady dealer! FCA execs watching this thread should take a gander at that. I never read the details, just saw really low prices on Autotrader. Saw the same for their Charger prices too.
     
  14. Tomguy

    Level 2 Supporter

    Joined:
    Oct 4, 2011
    Messages:
    1,024
    Likes:
    614
    That bites. That's one thing I don't like about my 14 Grand now. I will also never pay for Nav in *ANY* car again. Not worth the $600-800 mfg's charge for a system that doesn't let you input when moving (even when the passenger is buckled in), doesn't recognize voice commands, and isn't as good as what I can "Ok Google, navigate to BLAH" with for free.
     
    UN4GTBL likes this.
  15. TrueNorthTint

    TrueNorthTint Active Member

    Joined:
    Oct 4, 2016
    Messages:
    74
    Likes:
    74
    I'm going to push the 0% then use the, "great news! You also qualify for $5000 (stacked) in rebates to go along with the 0% financing!" 0% is going to be great this month I think. If you see the provincial numbers, we got our buts kicked here.
     
  16. DAGAR

    DAGAR Active Member

    Joined:
    Sep 21, 2014
    Messages:
    1,344
    Likes:
    1,896
    So just for fun which sold more Caravan and Pacifica for the Month or Sedona year to date? Nah, it''s the Sedona, but by only about 750. This month Pacifica alone outsold Sedona by greater than 10:1. Remember when many were concerned that the Sedona was so good looking and priced so well that the Pacifica wouldn't be able to compete? Yeah... not so much. :rolleyes:
     
  17. BobbiBigWheels

    BobbiBigWheels I'm likely at work...
    Level 2 Supporter

    Joined:
    Jun 2, 2016
    Messages:
    2,524
    Likes:
    3,240
    Yeah I hear yah, it doesn't make sense though.

    $9500 Off @ 4.19% is a significantly lower payment. Our buyers are payment buyers not price for the most part.
     
  18. UN4GTBL

    Level 2 Supporter

    Joined:
    Jan 7, 2006
    Messages:
    7,916
    Likes:
    2,557
    I'm still amazed that the Sedona doesn't sell better. The number of Hyundai & Kia models I see around here would have suggested such, but apparently not.
     
  19. suzq044

    suzq044 Resident Photoshop Nerd

    Joined:
    Apr 23, 2005
    Messages:
    7,008
    Likes:
    4,746
    My bf drives for work; they have two new Kia's. He hates them worse than the beat to [bleep] Caravans (they don't fix anything til the vans don't work anymore, basically, at this place). No repeat buyers maybe? He does like the pacifica though. A lot. lol (though we haven't actually driven one yet).
     
    UN4GTBL likes this.
  20. TripleT

    Level III Supporter

    Joined:
    Aug 20, 2003
    Messages:
    5,915
    Likes:
    6,395
    I had one for a week... it is mind boggling better then a Kia and a Caravan. Its hard to quantify, it just better in every way.
     
    UN4GTBL, danbek, somber and 1 other person like this.

Share This Page

Loading...