[Allpar News System]

Sergio Marchionne, in a statement released with February sales, warned that Chrysler’s sales will likely fall in March 2013, compared with March 2012. Last year, March was the peak sales month for the company, with over 163,000 U.S. sales, compared with an average of under 140,000 sales per month (during 2012). This year, Chrysler sales rose just 4% in February, ending a stunningly long streak of double-digit year-over-year sales gains. Mr. Marchionne blamed next month’s projected drop (versus 2012) on the end of Liberty availability, and lack of product due to launches of the 2014 Jeep Grand Cherokee and Compass, along with the Ram Heavy Duty pickups. Liberty went out of production in 2012, but dealers were told to stock up on them, given the unusual length of time the plant would be refitted. The new Jeep Cherokee, which replaces Liberty, is not due to start production until May,..

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[Bran]

I mentioned and you saw it from the Chrysler slide on the product launch, that we will probably be under producing compared to Q1 2012 in Chrysler, and so the performance of Chrysler in first quarter of 2013 is expected to be lower than it was in 2012, and it’s purely because of product launches.

We have one plant that’s been completely down compared to Q1 of 2012, that’s a Liberty producer. We’ve produced 31,000 cars, which are not there this year. We’ve got the Jeep van share, which is coming up, and we need to see whether we can match production of 2012, I’m not so sure. As a result of the ramp up, and we’ve got the launch of the heavy duty truck which is also going on as we speak.

So overall volumes will be down compared to 2012, that’s our best piece of it today, which means that will have a – it will have an impact on margins as on gross margins and overall performance, but it’s a Q1 event, and I want to make sure that we don’t surprise anybody, when we release numbers for the end of the quarter.

 

[jazz77]

Yes but every automaker launches new products but they don't experience the same gaps in availability.

Something specific about these launches? Or some kind of miscalculation? Perhaps the Cherokee was supposed to be launched before?

Just wondering...

 

[Dave Z]

Major factory renovations. Major component changes. Fewer resources now than there used to be.

 

[superduckie5000]

Toledo North has Been Going For 10+ Years It Needed a Major Re-Do.

For New Product, New Processes and More Volume.

Nothing Unusual About That.

And Remember Next Year "Other" Plants Have Big C/O's.

TMD

 

[BASONE88]

Major factory renovations. Major component changes. Fewer resources now than there used to be.

This is what makes Sergio's awa everyone else's efforts so remarkable! They have done so much with so little. Congrats to all involved!

 

[Stratuscaster]

Yes but every automaker launches new products but they don't experience the same gaps in availability.

Or do they?

 

[bumonbox]

This is a very smart move on Sergio's part, to come out and announce this now.

As it is, you can bet there going to be some articles as soon as the drop is posted "Is Chrysler in trouble again". "Chrysler no longer gaining momentum". So on and so forth. The idiots are going to latch on to it. Fortunately though, prefacing it, and giving the explanation now makes it apparent it isn't by accident. If you give those reasons after the fact, it just sounds like excuses - giving it now removes the surprise. Like I said though, there are still going to be couple "critics" lacking the mental fortitude to grasp his warning.

 

[Paul J. Reed]

Having a hard time feeling bad for him. I am a huge fan of Sergio, but I am beginning to lose my patience. Still waiting for Dart R/T or GT, or whatever they decide to call it next just to have an excuse for delaying it again. Its curious to me that the Fiat launches in the US seem to be right on schedule with no problems.... Maybe its just me.

 

[UN4GTBL]

Having a hard time feeling bad for him. I am a huge fan of Sergio, but I am beginning to lose my patience. Still waiting for Dart R/T or GT, or whatever they decide to call it next just to have an excuse for delaying it again. Its curious to me that the Fiat launches in the US seem to be right on schedule with no problems.... Maybe its just me.

The 500 launch was by no means a success...

 

[JJMPR440+6]

If I remember correctly, some FIAT dealers weren't even finished with construction when they were supposed to launch....Not quite on time by that measure....

 

[Stratuscaster]

I don't feel "bad" for Marchionne at all - he's already stepped up and taken responsibility for the issues with the 500 launch and the Dart launch.

Folks waiting on the Dart GT that are getting upset - why? Impatience? Wouldn't you rather have it done RIGHT? I don't recall anyone making any kind of promise or "pinkie swear" that it would be available on "this date."

 

[AutoTechnician]

 

I don't feel "bad" for Marchionne at all - he's already stepped up and taken responsibility for the issues with the 500 launch and the Dart launch.

Folks waiting on the Dart GT that are getting upset - why? Impatience? Wouldn't you rather have it done RIGHT? I don't recall anyone making any kind of promise or "pinkie swear" that it would be available on "this date."

The Dart first-drives occurred nearly a year ago, and production started about 10 months ago. That's nearly a year without a major promised powertrain option.

With oh2o's comments about the '14 300/Charger not launching with the 8-Speed, these delays have gone from inconvenient to ridiculous. They've basically squandered the massive lead they could have had. Lexus, Hyundai both have V8 8-Speed sedans, GM is expected to debut their 8-speed soon. We all want Chrysler to do it right, but it needs to be done right in a timely manner.

 

[marlon_jbt]

  The Dart first-drives occurred nearly a year ago, and production started about 10 months ago. That's nearly a year without a major promised powertrain option.

With oh2o's comments about the '14 300/Charger not launching with the 8-Speed, these delays have gone from inconvenient to ridiculous. They've basically squandered the massive lead they could have had. Lexus, Hyundai both have V8 8-Speed sedans, GM is expected to debut their 8-speed soon. We all want Chrysler to do it right, but it needs to be done right in a timely manner.

Capacity is a HUGE problem right now. I bet that has a lot to do with it.

 

[Erik Latranyi]

We have read that Sergio pushes very hard to shorten lead-times. That does not mean he is the source of the optimistic timlines.

What is amusing is that Chrysler has a "rule" that no new product gets shown to the public outside 90 days of start of production so it does not build expectations too early.

 

[Paul J. Reed]

We have read that Sergio pushes very hard to shorten lead-times. That does not mean he is the source of the optimistic timlines.

What is amusing is that Chrysler has a "rule" that no new product gets shown to the public outside 90 days of start of production so it does not build expectations too early.

Ahhh so they get around this "rule" by changing names of cars then....

I don't feel "bad" for Marchionne at all - he's already stepped up and taken responsibility for the issues with the 500 launch and the Dart launch.

Folks waiting on the Dart GT that are getting upset - why? Impatience? Wouldn't you rather have it done RIGHT? I don't recall anyone making any kind of promise or "pinkie swear" that it would be available on "this date."

Sorry to have impatience and enthusiasm for a product. I agree that I want them to get it right. But wasn't the R/T supposed be available in Q4 2012? I guess they missed that.

 

[MoparNorm]

I don't feel "bad" for Marchionne at all - he's already stepped up and taken responsibility for the issues with the 500 launch and the Dart launch.

Did he?
I read where he recalled and blamed situations and circumstances and he fired Soave, but I've never read where he said "I". He only says "We".
There is a difference. Do we have any quotes?

 

[Dave Z]

I think the issue with Dart GT is they were probably going to have the 2.4 TigerShark as the only 2.4, period, but it added so much to the cost of the Patriot and Compass and 200 and Avenger that they changed their minds and kept the old one going. That meant they had to wait for a new assembly line to be built to make the Dart GT, or give it the less satisfactory version of the engine.

 

[Paul J. Reed]

I think the issue with Dart GT is they were probably going to have the 2.4 TigerShark as the only 2.4, period, but it added so much to the cost of the Patriot and Compass and 200 and Avenger that they changed their minds and kept the old one going. That meant they had to wait for a new assembly line to be built to make the Dart GT, or give it the less satisfactory version of the engine.

New Engine Assembly line or vehicle assembly line?

Did he?
I read where he recalled and blamed situations and circumstances and he fired Soave, but I've never read where he said "I". He only says "We".
There is a difference. Do we have any quotes?

"I take full ownership for the fact that it wasn't the launch that I wanted." - See more at: http://money.cnn.com/2013/01/14/autos/dodge-dart-marchionne/index.html#sthash.UKKVpG4K.dpuf

 

[superduckie5000]

The Question - Well Kind'a. Rings On to High!

I Can't Say or Quack It But If Some Were Someone Were To Connect the Dots About a Number Recent

"Events" With Powertrain "Engine" Plants the Math Would Work About the T/S !

Go Back Thru All the Announcements for a Number of Months.

There Has to Be Someone Who Can Add It All Up.

Yes: marion_Jbt You Are Correct to About 8 Decimal Places with the " Capacity" Call.

Or as I Call It "A Victim of Your Own Success Syndrome".

Chrysler Powertrain Has Suffered From It Many Times.

TMD