April 18, 2014

Chrysler Reports Sales Surge In June 2011

Chrysler Group LLC Reports June 2011 U.S. Sales Increased 30 Percent; Best June Sales Since 2007. Highlights include:

– Retail sales surge 46 percent in June compared with same month a year ago; best retail sales month of the year

– June marks the 15th-consecutive month of year-over-year sales gains

– Jeep®, Dodge and Ram Truck brands all post year-over-year sales gains

– New 2011 Chrysler 200 sales up 82 percent compared with sales of its predecessor a year ago; retail sales of the Chrysler 200 increase more than five fold

– All Jeep brand models post at least double-digit sales gains in June led by the new 2011 Jeep Compass, whose sales were up 278 percent versus a year ago

– All-new 2011 Jeep Grand Cherokee posts 208 percent year-over-year sales increase

– Ram Truck brand posts a 34 percent increase versus a year ago, the brand’s 14th-consecutive month of year-over-year sales gains

– All-new 2011 Dodge Durango three-row SUV sales increase 34 percent compared with sales in the previous month of May 2011

– 2012 Fiat 500 named Coolest New Car Under $18,000 by Kelley Blue Book’s kbb.com

– Chrysler brand’s 2011 Super Bowl commercial “Born of Fire” takes home five awards at the Cannes Lions 58th International Festival of Creativity

– 2011 Chrysler Town & Country minivan and the 2011 Dodge Challenger muscle car rank highest in minivan and mid-size sporty car segments in the J.D. Power and Associates 2011 U.S. Initial Quality StudySM

– 2011 Chrysler 300, Dodge Charger, Chrysler Town & Country and Dodge Durango make AAA’s Top Vehicle Picks for Road Trips

July 1, 2011 , Auburn Hills, Mich. – Chrysler Group LLC today reported U.S. sales of 120,394, a 30 percent increase compared with sales in June 2010 (92,482 units), and the best June sales since 2007.

All Jeep® and Ram Truck brand models contributed to the 30 percent June sales increase, including the all-new 2011 Jeep Grand Cherokee, which posted a 208 percent sales increase, and the 2011 Ram pickup truck with a 35 percent sales gain.

Chrysler Group’s new fuel-efficient models also played a significant role in the June sales increase, including the new 2011 Chrysler 200 mid-size sedan, the new 2011 Jeep Compass compact SUV, and the new 2012 Fiat 500 city car.

“Thanks to our alliance with Fiat, we now have 12 models that have EPA-rated highway fuel economy of 25 miles per gallon or higher, and four of those models get 30 mpg or more,” said Reid Bigland, President and CEO – Dodge Brand and Head of U.S. Sales. “This business is all about product and consumers are rapidly discovering everything we now have. Each Chrysler Group brand is contributing to our success and driving our 46 percent retail sales growth.”

Eight of the 12 models are equipped with Chrysler Group’s newest engine, the Pentastar 3.6-liter V-6, recognized by the editors of Ward’s AutoWorld magazine as one of the “Ten Best” for 2011. With its exceptional fuel economy, reduced emissions and enhanced power, the new Pentastar V-6 is expected to account for more than one-third of the engines in the Chrysler Group product line-up by 2014 and will substantially contribute to achieving an overall corporate fuel efficiency improvement of 25 percent.

The Jeep, Dodge and Ram Truck brands each posted year-over-year sales gains in June. The Jeep brand’s 74 percent increase was the largest of the Chrysler Group brands. Both Chrysler Group’s car and truck sales posted sales gains in June compared with the same month a year ago.

First half 2011 Chrysler Group sales increased 21 percent versus the first half of 2010.

Chrysler Group finished the month with a 68-day supply of inventory (314,065) units. U.S. industry sales figures for June are projected at an estimated 11.8 SAAR.

June 2011 U.S. Sales Highlights by Brand

Jeep® Brand

The Jeep brand continues to roll, posting a 74 percent sales increase in June, the brand’s best sales volume month since March 2008 and its 14th-consecutive month of year-over-year sales gains. All five Jeep brand models posted a sales increase compared with the same month a year ago. The iconic Jeep Wrangler was the best-selling Jeep model in June with sales of 11,290 units, a 27 percent increase. The all-new Jeep Grand Cherokee posted a 208 percent sales increase in June versus the same month in 2010. The new Jeep Compass compact SUV, with a 278 percent sales increase, posted the largest year-over-year percentage sales gain of any Chrysler Group model.

Ram Truck Brand

The Ram Truck brand posted a 34 percent sales increase in June, the brand’s 14th-consecutive month of year-over-year sales gains. Ram pickup truck sales were up 35 percent, compared with the same month in 2010. Both the Light Duty and Heavy Duty pickup trucks, along with the Chassis Cab, saw year-over-year sales gains.

In last month’s J.D. Power and Associates 2011 U.S. Initial Quality Studysm (IQS), five Chrysler Group vehicles ranked third or better in their segments for initial quality, including the Dakota pickup truck in the mid-size pickup segment.

The Ram Truck brand launched its new national advertising campaign in June with the tagline – “Guts. Glory. Ram.” – focusing on the proven capability and superiority of the entire product line. The new advertising campaign encompasses broadcast, print, digital and customer relationship initiatives. The new tagline pays homage to the history of the Ram Truck brand and represents the hard work and dedication placed in the design, engineering and production of each and every Ram truck.

Dodge Brand

The Dodge brand, which offers six vehicles that deliver 25 mpg on the highway while retaining Dodge innovation and style, posted a 17 percent sales increase in June, compared with the same month in 2010. The all-new Dodge Durango three-row SUV had its best sales month since appearing in dealership showrooms in late 2010. Durango sales (5,827 units) increased 34 percent versus the previous month of May 2011. The Dodge Grand Caravan, the brand’s volume leader in June with 10,822 units sold, posted a 25 percent sales increase, while sales of the Dodge Challenger muscle car were up 10 percent in June compared with the same month a year ago. Sales of the Dodge Journey crossover were up 17 percent in June.

In June, the Challenger ranked highest in the midsize sporty car segment in the J.D. Power and Associates 2011 U.S. Initial Quality Studysm. Two other Dodge brand vehicles were highlighted by J.D. Power and Associates for ranking among the top three vehicles of their competitive class: Durango in the mid-size crossover/SUV category (tie) and Grand Caravan in the minivan category.

Chrysler Brand

Sales of the new 2011 Chrysler 200 mid-size sedan, star of the Chrysler brand’s 2011 Super Bowl commercial “Born of Fire,” increased 82 percent in June compared with sales a year ago by the model’s previous generation. The Chrysler brand’s Super Bowl commercial was honored in June with five awards at the Cannes Lions 58th International Festival of Creativity held in Cannes, France. Cannes Lions is the world’s leading celebration of creativity in communications where over 24,000 entries from all over the world are showcased and judged.

In June, the Chrysler Town & Country ranked highest in initial quality in the minivan segment in the J.D. Power and Associates 2011 U.S. Initial Quality Studysm. IQS measures new vehicle quality at 90 days of ownership. Sales of the Town & Country were up 3 percent compared with the previous month of May 2011. For 2011, every Chrysler brand vehicle is new or significantly refreshed.

June 2011 U.S. Sales Highlights

– Jeep brand sales (36,114 units) increased 74 percent compared with the same month last year (20,731 units)

– Sales of the new 2011 Jeep Compass (4,763 units) were up 278 percent versus June 2010 (1,259 units)

– Jeep Grand Cherokee sales (8,969 units) improved 208 percent compared with June last year (2,912 units)

– Jeep Wrangler sales (11,290 units) increased 27 percent versus June 2010 (8,923 units)

– Jeep Liberty sales (5,252 units) increased 36 percent compared with June last year (3,865 units)

– Jeep Patriot (5,840 units) posted an 77 percent year-over-year sales increase

– Ram Truck brand sales (22,547 units) increased 34 percent compared with the same month last year (16,862 units)

– Ram pickup truck sales (21,362 units) improved 35 percent versus June 2010 (15,864 units)

– Dodge brand sales (43,401 units) were up 17 percent in June compared with June a year ago (36,996 units)

– Dodge Durango sales (5,827 units) increased 34 percent versus the previous month of May 2011

– Dodge Challenger sales (3,384 units) were up 10 percent in June compared with the same month a year ago (3,086 units)

– Dodge Grand Caravan sales (10,822 units) increased 25 percent versus June 2010 (8,658 units)

– Dodge Nitro sales (1,994 units) increased 25 percent compared with June 2010 (1,591 units)

– Sales of the new 2011 Chrysler 200 (7,219 units) were up 82 percent versus sales of the model’s previous generation (3,978 units) in June a year ago

– Fiat 500 sales (1,803 units) were up 3 percent compared with sales during the previous month of May 2011

– Chrysler Group truck sales (88,735 units) improved 42 percent versus June 2010 (62,417 units)

– Chrysler Group car sales (31,659 units) improved 5 percent versus June 2010 (30,065 units)

Chrysler Announces Pricing for Bonds – Intends to Refinance Government Debt

Chrysler Group announced on Friday the long awaited pricing on the Bonds the company plans to issue so that they can refinance government debt. The Bond offering, broken in to two separate issues, totals $3.3 billion. The company plans to sell $1.5 billion in bonds at an 8% interest rate due 2019 and another $1.7 billion carrying 8.25% percent due 2021. Along with these Bonds Chrysler will also be able to access lines of credit worth a combined $4.3 billion.

Chrysler will also receive $1.27 billion from Fiat. The Fiat money will take them from a 30% stake in Chrysler to a 51% stake, making Fiat the majority owner of Chrysler. By repaying the government loans and refinancing them long term, the auto maker can slash interest payments in a dramatic fashion. The company estimates that by paying less interest they will be able to announce quarterly profits instead of lasses.

Getting to profits is an essential part of Chrysler’s plans to go public. The company had indicated that the possibility of going public may happen this fall, but more recent statements make 2012 a more likely situation.

Chrysler To Shift Plant Shut Downs From July To June

While the disaster in Japan has impacted nearly every auto maker to some degree, certain makers have been more immune to the aftermath than others. Despite a perception that U.S. makers are insulated from the impacts, the fact is that nearly every car made has at least some components sourced from Japan. In an effort to minimize the impacts to themselves, Chrysler has shifted the summer shutdown of three U.S. plants from July to June.

The length of the shut downs will remain the same, but the move allows parts suppliers a few additional weeks to get their production back up to meet demand. The truck plant in Warren, Michigan and assembly plants in Toledo, Ohio and Toledo Supplier Park will all be impacted by the new schedule. The Warren and Toledo plants will be idled for the weeks of June 20th and 27th instead of July 11th and 18th while Toledo Supplier Park plant will be closed for the week of June 20th instead of July 11th.

The models involved include the Ram 1500 and Dakota pickup trucks, the Jeep Liberty and Wrangler, as well as the Dodge Nitro.

Chrysler Announces First Profit In Over 5 Years

The good news in the auto sector started out strong with Ford recording great numbers last week and Chrysler announcing their first profitable quarter in over 5 years this morning.  Chrysler, the benefactor of a government bail-out to save the company had struggled in recent years, but began a strong comeback by shedding the Plymouth name, and concentrating on vehicles that appeal to consumers.  The fruits of all of that hard work resulted in a Q1 profit of $116 million vs a loss of nearly $200 million only a year ago.  That is a swing of over $300 million, and a substantial step for the company as they seek to go public later this year.

What delivered these substantial changes for Chrysler?  First, the revenue rose an incredible 35% to $13.1 billion.  Secondly the company is selling more cars.  Global sales were up 18%.  Other positive news for Chrysler is that they are anticipating the repayment of government bail-out money, and Fiat is taking a bigger stake.

Chrysler brands include Dodge, Ram, and Jeep.

 

 

Chrysler To Repay Government Loans

Chrysler, a car company that was on the ropes only two years ago is now well into recovery.  So much so that the company will soon repay $7.5 billion in bailout money that the U.S. and Canadian governments loaned the company two years ago.  Chrysler plans to pay back government debt later in the second quarter of 2011 using money from new bank loans as well as an upcoming bond sale.

By refinancing Chrysler can repay a the bulk of the bailout from the U.S. and Canada, which carry high interest at 12%, and by extension save millions as they continue their quest to make an IPO later this year.  Interest on the government loans cost the company an estimated $1.2 billion in 2010.  Those interest payments were a big factor in Chrysler reporting a loss of over $650 million.

The company plans to sell bonds to institutional investors in a private offering to obtain the money to repay the government loans.  Fiat, which runs Chrysler, will pay $1.3 billion to the company once the government loans are repaid.  In exchange Fiat, which currently owns 30% of the company will get an additional 16% .  Fiat can get another 5% (to total 51% ownership) when the company produces a 40 mpg car for the U.S. market.