Edmunds.com, the premier online resource for automotive information, reports that Chrysler is within reach of its sales targets for the year.
“Fiat/Chrysler deserves a lot of credit for the progress made so far,” says Edmunds.com Senior Analyst Michelle Krebs, who provides more details in her report on AutoObserver.com. “It was questionable whether they'd survive 2010, but now the company seems to be on track for better days.”
Some points are extremely promising for the company:
• The average Chrysler vehicle currently takes 66 days to be sold once it reaches the dealership. Last year, Chrysler averaged 109 days-to-turn.
• The average Chrysler is currently sold for about $1,500 below sticker price, not including incentives. Last year, Chrysler averaged a $3,000 discount.
• Chrysler’s incentive program currently averages a cost of $3,309 per vehicle. Last year, the average True Cost of Incentives for Chrysler was $4,122 per vehicle.
• The company has some highly anticipated new vehicle introductions ahead. The 2011 Jeep Grand Cherokee, the Chrysler 300, the Chrysler Sebring and the Dodge Avenger have great potential.
However, there are still some hurdles:
• Chrysler set a goal of 1.1 million global sales, and they are on track – but only because they are selling many vehicles to daily rental fleets.
• Last month only 17 percent of Chrysler trade-ins were exchanged for new Chryslers. This is the lowest current loyalty rate among the major brands.
“It is important to consider Chrysler’s cash position,” Krebs says. “The company needs cash reserves to finance much-needed future products if it is to continue on an upward trajectory.”
Edmunds.com Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site. Its mobile site, accessible from any smartphone at www.edmunds.com, makes car pricing and other research tools available for car shoppers at dealerships and otherwise on the go. InsideLine.com is the most-read automotive enthusiast Web site. Its mobile site, accessible from any smartphone at www.insideline.com, features the wireless Web’s highest quality car photos and videos. CarSpace is the most established automotive social networking Web site. AutoObserver.com provides insightful automotive industry commentary and analysis. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.
