Chrysler to make cuts in fleet sales in '08
Chrysler has looked deep into it soul and decided to join the General and FoMoCo in an attempt to reduce its reliance on fleet sales. Chrysler's Vice Chairman, Jim Press (that still doesn't sound right), alluded to the reduction during a conference call regarding December sales figures and said, "you have to stay out of the 30-percent range and into the 20s." Where in "the 20s" was unspecified, but with vehicle sales expect to continue their decline this year, any reduction of income could hurt the automaker. However, Press went on to say that he expects a "very small increase" in retail sales during '08 and a plan is underway to increase the value-per-dollar quotient of Chrysler's brands by offering more features for less cash.[Source: CNN Money]
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Reader Comments (Page 1 of 1)
sk 9:13AM (1/05/2008)
How will they sell anything if it is not fleet?
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DanMan 9:29AM (1/05/2008)
Fleet sales are like a drug to the domestics, that was how Ford kept Taurus sales out of the toilet for the last few years of production. It's the main source of sales for the Crown Victoria.
Chevy has had the same issue with many of its sedans.
I guess Chrysler isn't considering Cop Cars to be fleet because the local (Albuquerque) news just had a story last night about the APD buying Charger crusiers to replace some of their 1997 Camaro's they were using for high speed pursuit.
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rar 10:07AM (1/05/2008)
It would be a better choice to have a Charger vs a Camaro as a police car. If you’re in the Camaro, what do you do with the person after you arrest them? It would be hard to put them in the back seat. They have to send out another unit with a sedan to haul away the person they arrested.
DanMan 10:15AM (1/05/2008)
Albuquerque cops claim they can't live without their Camaros. They begged the Mayor to let them spend thousands on ground up rebuilds on the high mile units although he had just issued a "green" directive that the city make everything "flex or alternative fuel."
Cornholio 1:16PM (1/05/2008)
"Albuquerque cops claim they can't live without their Camaros.'
I'm picturing cops with mullets.....
(I kid! I kid!! Don't get your GM panties in a bunch)
DanMan 1:52PM (1/05/2008)
Hey I wouldn't dream of getting them in a bunch. Hell an Albuquerque cop in a Camaro is probably like a bad episode of Reno 911!
I've owned 3 GM products and currently drive two Fords. I'm just in the market for a good deal on a decent car.
I had a friend who worked at a gas station in high school who always said, "I never saw a Camaro with a stock sound system or a Harley with a stock exhaust." (We were born and raised in NW Ohio farm country.)
Avinash machado 9:36AM (1/05/2008)
Where in "the 20s" was unspecified.
What about 29.9%?
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Xcountryflyer 2:33PM (1/05/2008)
You beat me too it. That's what I was thinking.
carguy 10:36AM (1/05/2008)
They'd better stop making the Sebring then.
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Brent 11:05AM (1/05/2008)
This should help the resale of Chrysler products. It had to be done.
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Spike 11:19AM (1/05/2008)
What is Chrysler going to do with all of the Sebrings if they are going to have fewer fleet sales?
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Brent 12:28PM (1/05/2008)
Improve them with their emergency "Project D" and sell them to individual consumers!
(If only it was that simple.)
motorman 12:55PM (1/05/2008)
with the new UAW contract it is now cheaper not to build the cars and lay off the workers than it was under the old work rules. under the old rules it cost almost as much NOT to build the cars as to build them so they kept the lines running and hope they sold the cars
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bobfranks 1:18PM (1/05/2008)
They need to do more than that. They have to start building cars that people want. It's that simple.
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olddavid 1:40PM (1/05/2008)
I'm not of that school. I'm Chrysler- I've got idle plants and plummeting market. Why not increase fleet sales? What is your alternative to the massive costs of mothballing or selling about a dozen facilities in North America? What the hell- at least you could say you've finally tried everything.
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RamSport47 2:33PM (1/05/2008)
Do you really not pay attention? Chryslers sales are actually slightly up from last year. I'd say for "the underdog" that that is pretty damn good. Imagine waht they're gonna do once they make non Daimler cars. Remember, all of the upcoming cars you guys bash are all Daimler developed cars, so give Chrysler LLC a chance
C.W. 9:38AM (1/07/2008)
RamSport, you must be kidding. The only reason Chrysler sales are up is because of massive incentives they offered on basically everything. more so than ANY other OEM in 2007. Liberty's for $99 a month, Rams for $175 a month. I work with dealers daily and even loyal Ford or GM employees were going to Chrysler stores because even with employee pricing you couldnt beat those prices. but guess what? those days are over. Chrysler sat their dealers down and announced that the days of incentives like they saw in 07 are gone for good. they told all their dealers to plan for a minimum 20% decline in sales from 07. what this means is that consumers will start buying vehicles for quality and value since they wont be getting those ridiculous price points any more. Chrysler is in serious trouble because their quality is sub-par, their trucks underperform and when a consumer comes in to renew their lease and is told their $99 Liberty payment is now $200 (minimum) they will lose these customers. Just the way Ford and GM lost business to Chrysler in the past several years.
C.W. 9:40AM (1/07/2008)
The only reason Chrysler sales were slightly up in 07 is because of massive incentives they offered on basically everything. more so than ANY other OEM in 2007. Liberty's for $99 a month, Rams for $175 a month. You cannot beat those prices. I work with dealers daily and even loyal Ford or GM employees were going to Chrysler stores because even with employee pricing you couldnt beat those prices. but guess what? those days are over. Chrysler sat their dealers down and announced that the days of incentives like they saw in 07 are gone for good. they told all their dealers to plan for a minimum 20% decline in sales from 07. what this means is that consumers will start buying vehicles for quality and value since they wont be getting those ridiculous price points any more. Chrysler is in serious trouble because their quality is sub-par, their trucks underperform and when a consumer comes in to renew their lease and is told their $99 Liberty payment is now $200 (minimum) they will lose these customers. Just the way Ford and GM lost business to Chrysler in the past several years.
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F.Bean 12:27PM (1/09/2008)
Is there anywhere (online) that tracks numbers on fleet sales, broken down by make and model? With the big three all claiming to cut back on fleet sales, it makes me wonder - just who are the fleets (especially rental companies) buying cars from, and what models are they buying? I'm seeing a lot of late model Hyundai Sonata's on used car lots, so I'm sure they're doing a lot of fleet sales. For someone like me, who typically buys used cars (often former rentals) it's nice to see some decent cars like the Sonata at a good price. Chrysler products have gone so far downhill that I would not buy even a cheap one coming out of a fleet.
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