It's Not Just the Crossfire
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It's Not Just the Crossfire
Here is an interesting piece from The Detroit News via Autoblog:
Chrysler Offers Incentives to Dealers
Struggling Chrysler Corp. is pulling out all of the stops to reduce its massively overbuilt inventory of vehicles. Lease incentives, 0% financing, begging and pleading, whatever it takes. Consumers have typically been the targeted recipients of these incentives, until now.
In a webcast to its dealers on Wednesday, Chrysler announced that it would pay dealers $200 for each 2007 model they took as long as they took their entire allocation for the months of November and December. If they take a 2006 model from the sales bank, they get $400. The dealers are free to use the cash however they want, including passing it on to the customer to move the vehicles from their already bloated inventories. Chrysler also promised dealers that they would begin building vehicles to suit demand to prevent further inventory issues in the future.
Dealer's reaction to the announcement was rather unenthusiastic. As they struggle to clear 2006 models from the lot, they are very hesitant to take more 2007's. Sometimes it's not just the financials, as many dealers are having difficulty with the physical space limitations of bringing more vehicles into inventory. One dealer, speaking on condition of anonymity, said that despite the manufacturers offer, he doesn't plan to take any more vehicles than necessary. "Our allocation isn't that high", the dealer said, "we just don't need anymore vehicles."
No wonder Chrysler can't spend a lot of time worrying about the Crossfire -- it has much bigger problems across the board with "bloated inventory." Somehow, though, this unfortunate and unhappy situation really doesn't make me feel much better...
In a webcast to its dealers on Wednesday, Chrysler announced that it would pay dealers $200 for each 2007 model they took as long as they took their entire allocation for the months of November and December. If they take a 2006 model from the sales bank, they get $400. The dealers are free to use the cash however they want, including passing it on to the customer to move the vehicles from their already bloated inventories. Chrysler also promised dealers that they would begin building vehicles to suit demand to prevent further inventory issues in the future.
Dealer's reaction to the announcement was rather unenthusiastic. As they struggle to clear 2006 models from the lot, they are very hesitant to take more 2007's. Sometimes it's not just the financials, as many dealers are having difficulty with the physical space limitations of bringing more vehicles into inventory. One dealer, speaking on condition of anonymity, said that despite the manufacturers offer, he doesn't plan to take any more vehicles than necessary. "Our allocation isn't that high", the dealer said, "we just don't need anymore vehicles."
Re: It's Not Just the Crossfire
Originally Posted by dynamicS
maybe we should focus more on the positive parts of Chrysler.
Let's rally round the fire fellas !!! WOOO HOOO.
Last edited by HDDP; 11-26-2006 at 03:01 PM.
Re: It's Not Just the Crossfire
Originally Posted by HDDP
YEAH, LIKE THE SUCCESS OF THE K CAR !!! Or, perhaps that it was the ONLY private company to ever be bailed out with U.S. TAX $.
Let's rally round the fire fellas !!! WOOO HOOO.
Let's rally round the fire fellas !!! WOOO HOOO.
Join Date: Nov 2006
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Re: It's Not Just the Crossfire
My son works for Chrylser as a manager at one of there parts depo, and he says they have over 100,000 cars setting waiting to go to dealers. They have many rigs with very good leases at this time. One is a '06 - 1500 ram quadcab 4x4 auto - v8 with standard equipment, that leases for $49.00 a month with $1,800.00 dn. 24-36 month. (employees and friends) all others it is $98.00 per month, only good to the end of Nov. '06. That is how bad they want to move there rigs.
Re: It's Not Just the Crossfire
Until the housing market picks up the rest of the economy is going to be in the toilet. Trickle down effect and its taking its toll on all segments of our economy. I just spoke to a buddy of mine who has been a real estate agent for many years and he told me he has never seen it so slow. No wonder they can't sell cars. Incentives or no incentives, if people don't have money they are going to be cautious, especially on big ticket items.
Pat
Pat
Re: It's Not Just the Crossfire
indeed a slower market than normal...
so far this year... tracking our average days on market is about 110 days for this years sales. last years average 52 days. columbus, ohio.
we currently have 24 listings to give you an idea... but this is our norm.
a true buyers market.
so far this year... tracking our average days on market is about 110 days for this years sales. last years average 52 days. columbus, ohio.
we currently have 24 listings to give you an idea... but this is our norm.
a true buyers market.
Re: It's Not Just the Crossfire
Everybody who was thinking about buying bought a car last summer during the "employee pricing" scam. Now. the domestic car market will not pick up for a few years. GM admitted that program was a mistake. They sold a ton of cars all at once, and now had no market left to sustain sales throughout the year. They sold too many cars and now have nobody who needs to buy them. Besides, Chrysler's line is pretty thin. Especially on fuel efficient cars. They also are VERY truck heavy, like Ford, which is not good right now. And with dealers the way they are and how they treat customers, its amazing they sell cars at all!
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