Filed under: Chrysler, LLC., Daimler, Dodge, Earnings/Financials
DaimlerChrysler U.S. sales plummet
Code Blue! Dr. Z to the E.R., stat! DaimlerChrysler released its U.S. sales results for July today, and investors are on life-support.First the good news: Mercedes-Benz U.S. sales set a July record of 21,591 units, up 4 percent from last year.
Unfortunately, the bad news is really bad. Chrysler Group sales were down an astonishing 37 percent in July, to 150,349 vehicles, despite Chrysler's return to last summer's Employee Pricing, rebates and 0 percent financing.
Overall, DaimlerChrysler sales were down 34 percent.
[Source: Reuters]
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Reader Comments (Page 1 of 2)
Drewboy 3:06PM (8/01/2006)
Unfortunately, this doesn't really surprise me. Its been interesting seeing the Dr. Z ads, but I don't think they appeal to Chrysler group's target market. As much as I love horsepower, economy comes first and I'm hard pressed to find an appealing econo-car from DC.
As fugly as the new Sebring is, here's to hoping the Dodge version won't look so bad...
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Eddy Burke 3:06PM (8/01/2006)
I'm not surprised. I don't think that Americans want a German with a foreign accent to come and tell them what to buy (and remind them that Chrysler is not fully American anymore). Heck, it turns me off, and I'm not even American...
Ed
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JW 3:12PM (8/01/2006)
I guess there are no more parking lots to fill in the metro-Detroit area.
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Bill 3:15PM (8/01/2006)
Reuters is awful.
Sales down compared to what? Are they comparing July 2006 sales to July 2005 sales? I'm assuming they are. If that's the case, of course they're down. All the US automakers are down compared to last summer because of all the firesales and employee discounts last summer.
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ku 3:23PM (8/01/2006)
to quote my pal nelson from springfield,
"Ha-Ha."
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mike 3:23PM (8/01/2006)
Hey that thing got a Hemi in it ?
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Art Vandelay 3:36PM (8/01/2006)
To #3
Yes, it's not surprising that Ford and GM are down significantly from last year. However, it is surprising that Chrysler is down so much because they are offering employee pricing just like they did last summer. It makes you wonder how much worse it could have been for them if they didn't have heavy incentives.
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Richard Warren 3:41PM (8/01/2006)
Duh! Comparing last year with all the incentives to this year is just foolish, of course it's lower than last year.
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TL 3:45PM (8/01/2006)
American car companies despite their best efforts wont see an improvement until America wakes up and stops feeding Toyota and Honda all its money for boring bland cars that give an empty promise of superior quality and economy!!! Americans are the reason the American auto industry has so many problems. WAKE UP!!!
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Chuck 4:02PM (8/01/2006)
TL
I agree that most buyers could do just as well for themselves driving a Malibu, G6, Fusion, 500, Impala, instead of a Camry, or Accord and not have any issues (other than resale value), but just as good or almost as good isn't enough to erase the bad will built up from the 80's and early 90's when Ford and especially GM really screwed buyers with poor product and reliability. American cars aren't as bad as it seems, and Japanese cars aren't as good as their made out to be.
But Americans alone aren't the main reason the auto industry has so many problems. The cost of energy, out-sourcing, legacy costs (health care), unrealistic union contracts, the economy, uninspired design, engineering, execution, foreign manipulation of currency, and yes, lack of American loyalty are all causes.
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Ryan 4:15PM (8/01/2006)
"and yes, lack of American loyalty are all causes."
-Do you include Chrysler in that statement?!
-Why should the consumer be loyal when simply put this time 10 years ago DODGE was an American car company, now they are German. If the car makers can do it so can we!
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Brian 4:33PM (8/01/2006)
Honda (Honda, Acura) passed Chrysler (Dodge, Chrysler, Jeep) also by a thousand sales. And I'm sorry, but as a 2006 Honda Civic owner, why on earth would I've chosen a Caliber, Focus, Cobalt or, God forbid, an ION, over my car?
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Dodge Hater 4:45PM (8/01/2006)
I for one am glad to see this. I made the mistake of purchasing a 2006 Dodge Charger and I have had nothing but trouble with it. I have went through hell and back trying to get this pos fixed and bought back, but Chrysler does not give a shit about their consumers.
I am working on putting my story on a blog at
www.dodgechargersucks.com
Nothing there yet, but if my problems continue, it will be full
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JJ 4:56PM (8/01/2006)
Well what are your problems Dodge hater? Ever think you may have got a lemon or the dealership you got to...sucks?
I mean...seems having a problem with one car and hating the company and product line as a whole is a bit...juvenile.
I've had bad experiences with Toyota in the past, my friends toyota is horrible... doesn't make all camry cars and toyota suck now does it?
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Aki 5:05PM (8/01/2006)
"American car companies despite their best efforts wont see an improvement until America wakes up and stops feeding Toyota and Honda all its money for boring bland cars that give an empty promise of superior quality and economy!!! Americans are the reason the American auto industry has so many problems. WAKE UP!!!"
My Civic Si is more enjoyable than any pathetic offering that Ford/Chrysler/GM have to offer. Focus--how old is that relic now? Saturn Ion? Chevy Cobalt SS (haha good one)?
I get it, media is biased against American cars. That includes Consumer Reports, Motor Trend, Car and Driver and Road and Track. Also consumers are against all American cars as well. It's all a giant conspiracy perpetrated by the Japanese companies who amazingly brainwash all American consumers while astonishingly spend less on marketing and advertising than the big 2.5.
Or... maybe you're just too caught up in your fantastic fanboyism to see the truth?
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David 5:09PM (8/01/2006)
Chuck,
What does a lack of American loyalty mean in the context of the modern automobile industry? I drive a car assembled in an American factory by union labor; a Mazda6. Had I bought a Fusion instead, I'd be driving a car assembled in Mexico. If I want a car assembled in my home state, Ohio, built with a higher degree of American made content than my Mazda, I can buy (and likely will buy next) an Accord or Acura TL. Does American loyalty mean loyalty to American workers, something I personally believe in, or loyalty to American corporations, regardless of where they actually do business?
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Dodge Hater 5:26PM (8/01/2006)
JJ -
My vehicle has been to multiple dealers in attmept to repair, none of which were able to fix. The most recent dealership tried several times to get help from Chrysler without much success. I sent a complaint card to Chrysler in January that they ignored. They ignored several of my phone calls after that. Once I got a customer service rep. on the phone, she told me to turn my case in to the attorney general. I have been making payments on a car that I can not drive for a year now.
Yes, I think I have grounds to hate that company. They sure seem to hate me.
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Chuck 6:37PM (8/01/2006)
David, I completely agree that this American loyalty thing is completely muddied, especially to the public-at-large who really don't see beyond the traditional name plate Ford GM Chrysler thing.
There are as I see it two different loyalties you can have -
the loyalty to the workers and factories who build the cars - which would include Honda, Toyota, Mercedes-Benz, and other "imported" makes.
and the "follow the corporate money" loyalty
the Ford vehicles built in Mexico, GM and Chrysler products built in Canada, etc
(Mazda6 looks good on both fronts, doesn't it)
(forgetting for now about the domestic vs imported parts content - which can be fudged of course )
Which is more important? I'm not sure, but my gut tells me its the loyalty to the line workers and local white collar folks.
But to a large degree I think a lot of people don't even care about either loyalty, and I think they should at least give it a second thought because their own welfare will be affected somewhat, not to mention I think its the right thing to do.
I own two Ford products and two Jeep products and am fairly happy with them - However I am getting a Honda Fit next with some guilt ( I have no idea where it's built ), but at least I have some guilt and thought about it - I justify it right or wrong that I have given American companies plenty of money already
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Ryan 10:25PM (8/01/2006)
The sales are not as bad as they seem to those of you that are not in the car business. I sell cars a dodge store, and we were off 20 cars over last year (100 verses 120) but preowned cars (which dont get reported) were up 55 verses 32 last year. I know this is one store but after talked to other stores it seems preowned is the trend. We only sell preowned chrysler dodge and jeep. So before you go on bashing american cars, look at other facts.
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JJ 12:46AM (8/02/2006)
But DH what is the exact problem your car is having that cant seem to be fixed? You haven't stated that. Or i should say, what do you THINK the problem is? whats been giving you trouble? Its kind of hard to agree with your opinion when all you list is complaints and not hte problem.
and if you've had problems for more than a month or two i would of returned the car and filed a suit against the dealership that sold it to me AND Daimlerchrysler. If it indeed is a problem that cant be fixed and that your stuck with and if the car is indeed not driveable.
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