Autoblog

Chrysler reports $166M net income for Q1, down $307M vs. 2012

Michael Harley — Mon, 29 Apr 2013 13:30:00 EST

Filed under: Chrysler, Jeep, Earnings/Financials

Preliminary first-quarter results from 2013 have been announced by Chrysler, and the company is reporting a net income of $166 million on revenue of $15.4 billion. Compared to this period last year, net income is down $307 million and revenue has dropped $1 billion.

Chrysler says that its quarter was negatively affected by the costs associated with launching its 2013 Ram Heavy Duty, 2014 Jeep Grand Cherokee and preparation for the return of the all-new 2014 Jeep Cherokee pictured above. The launches should provide a strong second half of 2013, says the automaker. "We remain on track to achieve our business targets, even as the first-quarter results were affected by an aggressive product launch schedule," said Chrysler Group LLC Chairman and CEO Sergio Marchionne.

On a positive note, the automaker says worldwide vehicle sales are up 8 percent from one year ago, a number pushed by a 12 percent bump in U.S. retail sales. In addition, domestic market share has risen slightly, up to 11.4 percent from 11.2 percent last year. Read more in the official statement below.

Continue reading Chrysler reports $166M net income for Q1, down $307M vs. 2012

Chrysler reports $166M net income for Q1, down $307M vs. 2012 originally appeared on Autoblog on Mon, 29 Apr 2013 13:30:00 EST. Please see our terms for use of feeds.

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Dodge Dart misses sales targets as inventory mounts

Zach Bowman — Wed, 05 Dec 2012 09:14:00 EST

Filed under: Car Buying, Budget, Sedan, Dodge, Earnings/Financials

November was a rough month for the Dodge Dart. All told, Chrysler managed to deliver 4,489 units, down from 5,455 in October, but perhaps more telling is the sizable inventory Dodge now has on hand. Chrysler added a third shift to the Belvidere, Illinois plant that produces the new compact in order to satiate projected demand, and as a result, Dodge now has a 112-day supply of Dart models. That equates to 23,446 units waiting for a new home. Automakers typically average a supply of around 73 days. But the news wasn't so grim for the rest of the Chrysler stable.

Ward's Auto reports the Chrysler 200 saw particularly good sales through November, with the four-door seeing a 49.6 percent increase through the first 11 months of 2012 compared to the same time period on 2011. Likewise, the genetic sibling to the 200, the Dodge Avenger, saw sales jump 54.8 percent year over year through the same 11 months.

Dodge Dart misses sales targets as inventory mounts originally appeared on Autoblog on Wed, 05 Dec 2012 09:14:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #280

Dan Roth — Tue, 01 May 2012 17:45:00 EST

Filed under: Podcasts, Audi, Chrysler, Dodge, GMC, Hyundai, Mazda, Nissan, Scion, Subaru, Toyota

Dodge Dart, Chrysler Q1 sales, FR-S and BRZ versus MX-5, 2013 Nissan Altima's Hyundai Sonata influence

Episode #280 of the Autoblog Podcast is here, and this week, Chris, Dan, and Zach chat about the Dodge Dart, Chrysler's first-quarter 2012 sales, a Scion FR-S and Subaru BRZ smackdown at Motegi with a Mazda MX-5, and the influence of the Hyundai Sonata on the 2013 Nissan Altima. Your questions and comments power the end of the 'cast, and for those of you who hung with us live on our UStream channel, thanks for taking the time. We've embedded our Q&A module after the jump for you to scroll through and follow along, too. Thanks for listening!

Autoblog Podcast #280:

Topics:

Lamborghini Urus
Dodge Dart
Scion FR-S vs. Subaru BR-Z vs. Mazda MX-5 Miata
Chrysler sales robust in Q1, especially in California
Nissan Altima redesign influenced by Hyundai Sonata

In the Autoblog Garage:
2012 Hyundai Veloster
2012 Audi S5
2012 GMC Acadia

Hosts: Dan Roth, Chris Shunk, Zach Bowman

Runtime: 01:41:32

Get the podcast
[UStream] Listen live on Mondays at 10PM Eastern at UStream
[iTunes] Subscribe to the Autoblog Podcast in iTunes
[RSS] Add the Autoblog Podcast feed to your RSS aggregator
[MP3] Download the MP3 directly

Feedback
Email: Podcast at Autoblog dot com

Review the show in iTunes

Autoblog Podcast #280 originally appeared on Autoblog on Tue, 01 May 2012 17:45:00 EST. Please see our terms for use of feeds.

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Submit your questions for Autoblog Podcast #280 LIVE

Dan Roth — Mon, 30 Apr 2012 17:14:00 EST

Filed under: Etc., Chrysler, Dodge, Hyundai, Nissan, Scion, Subaru

We record Episode #280 of the Autoblog Podcast tonight, and you can drop us your questions via our Q&A module below, and chime in to direct our conversation. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.

Discussion Topics for Autoblog Podcast Episode #280

Dodge Dart
Scion FR-S vs. Subaru BR-Z vs. Mazda MX-5 Miata
Chrysler sales robust in Q1, especially in California
Nissan Altima redesign influenced by Hyundai Sonata

[iTunes] Subscribe to the Autoblog Podcast in iTunes
[RSS] Add the Autoblog Podcast feed to your RSS aggregator

Can't see the EventBox? Click Here.Voices Heard Media

Submit your questions for Autoblog Podcast #280 LIVE originally appeared on Autoblog on Mon, 30 Apr 2012 17:14:00 EST. Please see our terms for use of feeds.

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Fiat, Chrysler and who? Marchionne mulling third partner

Jonathon Ramsey — Fri, 13 Jan 2012 08:58:00 EST

Filed under: Chrysler, Earnings/Financials, Fiat

Fiat/Chrysler sold about 4.2 million cars in 2010, and company CEO Sergio Marchionne expects to improve that by more than 33% come 2014, predicting sales of 5.7 units that year (analysts, on the other hand, predict average Fiat/Chrysler sales of 4.9 million in 2014). Operating profit for 2011 has been pegged at around $600 million, a rewarding bump from the $200 to $500 million predicted earlier in the year and dwarfed by the predicted $3 billion operating profit for 2012.

For Marchionne, though, those numbers need help from the outside: he says that an automaker needs to sell ten million units per year globally in order to reach "a new level of efficiency" and get development costs where he wants them. To wit, he is considering a partnership with a third car company to make that happen. He has repeatedly stated that he hasn't spoken with anyone yet, but Italian paper Corriere della Serra has said that Peugeot is ready to talk, while other analysts have mentioned makers in emerging markets as potential partners.

This is hardly the first time Marchionne has mentioned his quest for Volkswagen-like scale - in fact, he's been quite consistent on his desire to rationalize costs throughout the carmaking process. Based on that, it's inevitable that he'll tie up, the only questions now are who and when. He could wait until Fiat digests the remaining 41.5 percent of Chrysler it doesn't own and "merges" with The Pentastar, or if the right partner raises a hand, it might be sooner. Whoever it is, if it results in more novelties like the Dodge Dart, we tentatively say we're all for it.

Fiat, Chrysler and who? Marchionne mulling third partner originally appeared on Autoblog on Fri, 13 Jan 2012 08:58:00 EST. Please see our terms for use of feeds.

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Marchionne: Chrysler will break even in 2010

Chris Shunk — Tue, 30 Mar 2010 16:59:00 EST

Filed under: Chrysler, Earnings/Financials, Fiat

Think Chrysler is having a banner 2010? A quick glance at the sales charts shows a company in dire need of new product, better quality and a Hail Mary on the showroom floor. But as bad as the situation is right now in Auburn Hills, MI, it appears the company could just about be done bleeding cash.

The Detroit News reports that Chrysler/Fiat CEO Sergio Marchionne told a group of reporters that he was committed to breaking even, adding that the company won't lose money on an operations basis this year. Is Sergio being optimistic or is he basing his numbers on cold, hard facts? Who knows, but when asked if there was a chance Team Pentastar could pull of an actual 2010 profit, he reportedly answered "who knows?"

Marchionne also told reporters that Chrysler had $5 billion in cash at the end of 2009, the 2011 Jeep Grand Cherokee was on schedule to hit production on May 3, and that 50 percent of all Chrysler Group vehicles will be riding on Fiat platforms by 2014. The Fiat/Chrysler CEO also reiterated his stance that Chrysler would sell 1.1 million vehicles this year and that U.S. auto sales would crest 11 million units in 2010.

It's only fair that Marchionne gave us a state of The Pentastar update given the fact that today marks the one-year anniversary of when the Obama Administration gave Chrysler 30 days of working capital to work out an official tie-up with Fiat.

[Source: The Detroit News]

Marchionne: Chrysler will break even in 2010 originally appeared on Autoblog on Tue, 30 Mar 2010 16:59:00 EST. Please see our terms for use of feeds.

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Report: Chrysler ends 25-month sales skid by sending 58% of new vehicles to fleets

Chris Shunk — Fri, 05 Mar 2010 18:31:00 EST

Filed under: Chrysler, Dodge, GM, Jeep

Just about every automaker posted February sales gains compared to the same month in 2009, and industry-wide sales were up 13 percent for the month. Even Chrysler posted its first year over year gain for the first time in 25 months, albeit by a mere 399 units. So is everybody at the company's Auburn Hills, MI headquarters celebrating? We're guessing the answer is no... due to the fact that a knee-wobbling 58 percent of those sales came to fleet customers.

Automotive News is reporting that only 35,832 of those 84,449 sales were made to retail customers. That's not good, folks. In better times, Toyota would be disappointed if it only sold 35,000 Carmry sedans to retail customers. When AN asked Chrysler about its low sales for the month, a spokeswoman reportedly said, "Fleet sales were very strong this month, and our company sales reflect that." Big fleet sales will reportedly be temporary, though, as the company still eventually plans to allocate only 25 percent of its sales to fleets.

But while that's bad news for Chrysler, Dodge and Jeep dealers, the company is likely at least happy that fleet customers are buying again. When the economy hit the skids in the fall of 2008, the fleet market went from a sales oasis for domestic automakers to a discount desert. Chrysler isn't the only automaker to rely on fleet sales in February, either. General Motors allocated 45,000 of its 144,000 vehicles to fleets, about 31 percent of its total sales.

[Source: Automotive News - Sub. Req'd]

Report: Chrysler ends 25-month sales skid by sending 58% of new vehicles to fleets originally appeared on Autoblog on Fri, 05 Mar 2010 18:31:00 EST. Please see our terms for use of feeds.

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REPORT: Honda to supplant Chrysler as America's 4th largest auto retailer

Chris Shunk — Mon, 07 Dec 2009 08:58:00 EST

Filed under: Car Buying, Chrysler, Honda

Throughout most of the history of the US auto industry, the Detroit Three sat atop of the sales charts with General Motors claiming first, Ford in second and Chrysler placing third. In the past few years Toyota has clawed its way past Chrysler and then Ford, and now it appears that Honda too has now passed the Pentastar. Barring some miraculous (and we mean truly outstanding) development, Honda will officially overcome Chrysler to become the fourth largest automaker in the States. Honda holds a rather insurmountable 200,000 unit cushion against its competition from Auburn Hills, MI -- more vehicles than any automaker sold during the month of November. Speaking of November, Chrysler was the only major automaker to see a sales decline, down 18.5 percent with a mere 65,000 units sold. Honda fared better with over 74,000 products sold.

While Honda's victory on the sales charts is indisputable, neither automaker is making a big deal about it. A Honda exec reportedly told Automotive News that it only worries about it internal sales numbers and doesn't focus on ranks. Chrysler spokeswoman Kathy Graham told AN that the company is on the right track to improve its standing, adding, "We are taking the steps that are necessary to have a good foundation and to build consumer confidence." Graham also said that the company is expecting better results in the future on account of its increased advertising spending. If Chrysler doesn't reverse its sales slide, the next automaker to pass team Pentastar could be Nissan -- the Japanese automaker finished only 7,000 units behind Chrysler in November.

[Source: Automotive News - sub. req'd]

REPORT: Honda to supplant Chrysler as America's 4th largest auto retailer originally appeared on Autoblog on Mon, 07 Dec 2009 08:58:00 EST. Please see our terms for use of feeds.

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Email blast: Nardelli tells employees sales will worsen

Jeremy Korzeniewski — Wed, 18 Jun 2008 15:33:00 EST

Filed under: Chrysler, Dodge, Earnings/Financials

Chrysler, already hurt by slow sales of its bread-and-butter pickups and SUVs, doesn't think things will improve any time soon. According to an email sent by CEO Bob Nardelli to Chrysler employees, he believes that sales will continue to spiral down the drain. So far, though, the third of the Detroit 3 isn't ready to announce any additional layoffs or plant closures. Chrysler must have had some really foresighted, or extremely pessimistic, people on the team who set early '08 predictions, as Nardelli claims that the company he's leading is still on track to achieve its goals.

Dodge has already shut the doors of its Saltillo plant in northern Mexico in an effort to "adjust" inventory levels of the current Ram pickup. The next vehicle set to debut for Dodge is the completely new Ram, which will appear just as gas prices have seriously trimmed truck sales. For Chrysler, the Hornet can't come soon enough.

[Source: The Detroit News, Photo by Bill Pugliano/Getty]

Email blast: Nardelli tells employees sales will worsen originally appeared on Autoblog on Wed, 18 Jun 2008 15:33:00 EST. Please see our terms for use of feeds.

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Researchers expect Chrysler sales to rise simply due to buyout

Chris Tutor — Wed, 23 May 2007 16:02:00 EST

Filed under: Marketing/Advertising, Chrysler

Carbuyers are such a fickle group. Chrysler learned that you can inundate them with all the cute ads, fashionable promotions, and corporate celebrities you've got, only to see sales stagnate and even decline. But CNW Market Research says the way to greater sales is to just throw yourself a little multi-billion-dollar buyout.

CNW's research indicates that consumers see the Cerberus buy as a good thing for the company, and, again according to the numbers, people would rather be on the winning team, buying their new cars from a well-off carmaker with a rosy future. CNW says just because of the perceived benefits of the Chrysler purchase, the company might see as much as a 4.4% uptick in sales.

We wonder if those same car shoppers will have such a positive image of Chrysler after Cerberus begins its expected restructuring to cut company overhead. The potential bad-pr backlash from seeing thousands of autoworkers lose their jobs just might erase any gains from becoming a more stable company.

[Source: Advertising Age]

Researchers expect Chrysler sales to rise simply due to buyout originally appeared on Autoblog on Wed, 23 May 2007 16:02:00 EST. Please see our terms for use of feeds.

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LaSorda will take on Chrysler's sales

Alex Nunez — Tue, 19 Dec 2006 09:07:00 EST

Filed under: Etc., Chrysler, Daimler

Chrysler CEO Tom LaSorda has found someone to fill departed sales and marketing chief Joe Eberhardt's role, and he found him by looking in the mirror. LaSorda, in addition to his responsibilities as the automaker's chief executive, has taken on the head sales and marketing role as well.

This comes in the wake of a $1.5B 3rd-quarter loss for Chrysler and a dealer revolt spurred by the glut of 2006 product sitting on dealer lots all over the place. These were the factors that forced Eberhardt to the exit, and LaSorda's mission is to fix the problem by dramatically and quickly reducing the excess inventory, cutting per-vehicle costs by $1,000, and reconciling with a dealer network that had lost faith in the corporate leadership.

Last week, we reported on word that Chrysler could extend its annual holiday shutdown by two to four weeks to help keep 2007 model inventory under control. Heavy incentives are being leveraged to get rid of lingering '06 models as quickly as possible. Once they're gone and the focus is put squarely back on the new 2007s, we can expect to see Chrysler dial back the incentives. Going forward, the automaker will shift to a system where they only build vehicles that dealers specifically order rather than overbuilding, which is what landed them in this mess to begin with.

The pressure's squarely on LaSorda and his deputies to get the ship righted, and with rumors swirling about Dr. Z's thoughts of bringing Wolfgang Bernhard back into the fold at Chrysler, there's very little room for error.

[Source: Detroit News]

LaSorda will take on Chrysler's sales originally appeared on Autoblog on Tue, 19 Dec 2006 09:07:00 EST. Please see our terms for use of feeds.

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