Chrysler's February Sales Results

[XDCX]

Here's the Press Release from Chrysler detailing their February sales results - click here

The good news is this is the first sales increase reported by Chrysler in over two years. The bad news is it appears fleet sales made up over 50% of Chrysler's sales.

[XDCX]

I don't want to be too suspicious, but it seems like Chrysler sold a ton of vehicles to fleet so they could report some good news.

Is it possible they withheld some of their fleet sales in January and rolled them into February?

I haven't had a chance to study the numbers but it appears that Chrysler must have sold about 50,000 units to fleet in February.

[dodgequality]

Where do you get the fleet sales?

[XDCX]

Originally Posted by dodgequality

Where do you get the fleet sales?

It's tough because Chrysler hasn't disclosed the retail/fleet mix for years.

The best guess at fleet sales is calculated by taking Chrysler's total sales from their Press Release and then backing out the number they report for retail sales on DealerConnect.

[crowe]

Looks like GM & Ford pumped a lot of fleet too.

“While Chevrolet had a 32 percent gain, deliveries through dealers were up only 1 percent, said Detroit-based GM, which gets 70 percent of U.S. volume from Chevrolet. Ford said fleet sales rose 74 percent.”

http://www.bloomberg.com/apps/news?p...6h5q4GqY&pos=1

[XDCX]

Originally Posted by crowe

Looks like GM & Ford pumped a lot of fleet too.

“While Chevrolet had a 32 percent gain, deliveries through dealers were up only 1 percent, said Detroit-based GM, which gets 70 percent of U.S. volume from Chevrolet. Ford said fleet sales rose 74 percent.”

http://www.bloomberg.com/apps/news?p...6h5q4GqY&pos=1

That's a valid point, all of the Detroit 3 OEMs benefited from fleet sales.

My frustration is Marchionne is willing to let Ram Truck sales fall by 29% because Diaz explained Chrysler no longer wants to be "hyper-competitive" with incentives. Marchionne's willing to fleet 58% of his volume but he wants to hold margin on Ram Trucks while his dealers slowly die off.

To be clear, I'm glad Chrysler is selling vehicles to fleet. I just wish someone in Auburn Hills would wake-up and realize they need to fight just as hard for retail market share.

[dodgequality]

http://1.bp.blogspot.com/_pMscxxELHE...toFeb20102.jpg

Graph showing SAAR for past years.
From - Motor Intelligence - Autodata Corp.

[XDCX]

Originally Posted by dodgequality

http://1.bp.blogspot.com/_pMscxxELHE...toFeb20102.jpg

Graph showing SAAR for past years.
From - Motor Intelligence - Autodata Corp.

That's interesting, the chart really shows how the industry has been in a slump for almost the last year and a half. It's also interesting to see the CARS induced sales spike.

On a positive note I've read that the vehicle scrappage rate continues to exceed the production rate and sooner or later there's going to be an increase in vehicle sales.

[XDCX]

I just had a chance to review the West BC's February Sales Report. Here are the highlights:

• Top Dealer = Dave Smith with 173 units (The only dealer to break 100)
• 25 Units would put your store on the front page of the Sales Report
• Half of the dealers in the West BC sold 12 or fewer vehicles
• Eight stores reported ZERO sales for the month

[Ralph]

The scrappage rate in normal circumstances I think would signal that, but we have a huge amount of people dropping off mature leases and going to 2 car families from 3, and 1 car families from 2. We also see a lot of people selling off one car getting down to one or two.

Thirdly, there are a lot of people selling the "project" car in the garage, driveway, etc...and getting money for them instead of watching them rust in the yard. It's an income stream bailing on vehicles you won't use again or very much, ie the old plow truck you use once a year, the mother-in-laws Grand Marquis you were saving for the daughter when she graduates next year, the 69 Dodge dart in the garage you were going to restore.

Just what I see in "Cow-Hampshire."

[79LilRedExpress]

Originally Posted by Ralph

The scrappage rate in normal circumstances I think would signal that, but we have a huge amount of people dropping off mature leases and going to 2 car families from 3, and 1 car families from 2. We also see a lot of people selling off one car getting down to one or two.

Thirdly, there are a lot of people selling the "project" car in the garage, driveway, etc...and getting money for them instead of watching them rust in the yard. It's an income stream bailing on vehicles you won't use again or very much, ie the old plow truck you use once a year, the mother-in-laws Grand Marquis you were saving for the daughter when she graduates next year, the 69 Dodge dart in the garage you were going to restore.

Just what I see in "Cow-Hampshire."

We have also seen many more 2 trades for 1 new car this year than we ever had in the past.

We have also been putting up a large banner " WE BUY CARS" every few months to increase floor traffic. Alot of people say they are just reducing the number of cars that they own to lower expenses.

[CarguyCO]

I sold a car that we bought because of that banner....well not your banner, ours.

We are also seeing a ton of folks wanting to lower their payments.....in fact in the last several months I have a few 2 car deals because people were trading in 2 cars and wanted to lower overall output....they lowered their output 100 bucks per month and hubby and wifey both got newer cars. They didnt' think they could do that.

We also see a ton of 2 for 1s....very prevelant here as we are near a military post and hubby is gone 18 months at a time....one car just sits anyway.

[Ralph]

The bottom line is that there are less cars on the road, not because of a temporary issue of scrappage, but because of a well thought out plan by the public to reduce expenses, gather up any money they can get on ebay, craig's list and the junk yards. Until the economy really turns and that seems a while away, I don't see any "pent up demand" those on the ever-positive side of the equation predict. I know when I can pull out of my place and across traffic to go left....which we couldn't do for the past 4-5 years, there are less cars on the road. People seem to be making it just fine with less vehicles in the yard, there's no rush to service and parts that usually accompanies slow-downs. This is different territory kids. Hell I had 4 vehicles, 2 boats and a motorcycle 2 years ago and I'm doing just fine with 2 vehicles and nothing else. I won't be replacing them ever. I think most people in the real world think the same way.

[ssdd]

Originally Posted by XDCX

I just had a chance to review the West BC's February Sales Report. Here are the highlights:

• Top Dealer = Dave Smith with 173 units (The only dealer to break 100)
• 25 Units would put your store on the front page of the Sales Report
• Half of the dealers in the West BC sold 12 or fewer vehicles
• Eight stores reported ZERO sales for the month

SEBC report was similar Ariggo dodge was the only one to break 100...

[Noah]

GLBC was a bit better:
Golling 206
Braun 152
Parkway 142
Southfield 142
Huvaere 141
Yark 120
Sterling Heights 119
Suburban 114
Palace 110

...everyone else is living off of their credit cards for the month.