Chrysler to spark Crossfire with lower-priced coupe

It hopes to raise sales without more discounts
March 15, 2004








BY LESLIE J. ALLEN
FREE PRESS BUSINESS WRITER




DaimlerChrysler AG will try to boost sales of its Chrysler Crossfire sports car by adding a lower-priced coupe when 2005 models reach dealerships in late April.

The new, less-expensive Crossfire won't have as many features as current models. It will come with only a six-speed manual transmission and in only one color: black.

But its $29,920 base price will be more than $4,500 less than any 2004 Crossfire model, and more than $4,700 less than more powerful and luxuriously appointed coupes and roadsters in the 2005 lineup.

The automaker will announce the new version of the Crossfire today, when it releases 2005 prices -- which include an $875 destination charge.

Offering a more-affordable Crossfire that could sell without discounts is smart marketing that could help create a more upscale image for the Chrysler brand, said Jesse Toprak, director of pricing and market analysis for the automotive research Web site Edmunds.com.

The automaker had been selling only about 600 or 700 of the sporty coupes each month. Sales surged past 1,000 in February, but that was largely thanks to a $2,500 cash-back incentive, Toprak said.

When the Crossfire debuted in July 2003, it took an average of 13 days to sell one. By February, that had jumped to 72 days, Toprak said.

"They were piling up . . . The problem was people thought it was too expensive and didn't consider it."

Loaded with options, a Crossfire could cost about $40,000, and for that price, people would look at a BMW or Mercedes instead, he said.

He said the Crossfire -- which along with the Pacifica crossover vehicle was intended to give Chrysler a tonier image -- had instead been bogged down. "Incentives do affect brand image," he said.

The lower-price model is "basically relaying to the consumer that this is like a Benz but it's under $30,000."

The Crossfire, assembled in Osnabrueck, Germany, shares the same mechanical underpinnings as the current Mercedes-Benz SLK roadster, also made by DaimlerChrysler. A new version of the SLK goes on sale this year.

The new, less-expensive Crossfire will have the standard 3.2-liter, 215-horsepower V6, power windows, cruise control, dual-zone temperature control, antilock brakes, stability control and traction control.

It lacks however, some of the convenience and comfort features of the current coupe, such as heated, power leather seats, a tire pressure monitor, an upgraded stereo, a customized set of luggage, heated mirrors, fog lamps and a garage door opener.

That version of the coupe will be renamed the Crossfire Limited for 2005 and sell for $34,620 with a manual transmission and $35,695 with an automatic.

Chrysler had previously announced that a roadster version of the Crossfire will debut this spring. Prices for that two-seat convertible will begin at $34,960, and $38,920 for a Limited version.

Those models will be joined by new top-of-the-line versions of the Crossfire called the SRT-6. It features a a 320-horsepower, 3.2-liter supercharged V6, and a suggested retail price of $45,695 for the coupe and $49,995 for the roadster.

Chrysler says the entry-level Crossfire will compete with the Nissan 350Z, Infiniti G35 and Mazda RX8. Competitors for the Crossfire Limited include the Audi TT and Porsche Boxster.




Contact LESLIE J. ALLEN at 313-222-8657 or allen@freepress.com.