By Angelo Young - The world’s “Big 8” automakers are releasing March U.S. monthly sale figures throughout the day Tuesday. Forecasts expect sales to have increased to 1.48 million from 1.19 million in February, or about a 2 percent increase from March of 2013.
The seasonally adjusted annualized rate (SAAR) is expected to come in at 15.8 million, up from 15.3 million in February. The SAAR is a key 12-month running metric that adjusts for seasonal variations and gives an indication of the health of the marketplace and consumer sentiment. The unusually harsh winter weather has been blamed for lower-than-expected sales at the start of the year. February’s SAAR hit 15.3 million, which missed the consensus estimate of about 15.5 million.
Click here to read more about March’s U.S. new-auto sales forecasting.
Chrysler Group LLC
Chrysler was the first to report sales on Tuesday. The Auburn Hills, Mich.-based automaker said U.S. sales increased 13 percent in March, to 193,915 units, on strong demand for Jeep SUVs and Ram pickups.
Chrysler Group, which is in the process of merging operations with Fiat SpA into a new entity called FCA (Fiat Chrysler Automobiles), said its Jeep brand had its best sales month ever with deliveries rising 47 percent compared to March 2013. The company’s Ram pickup posted the best March in a decade.
“Chrysler owes much of its success so far in 2014 to the Jeep brand,” said Jesse Toprak, senior analyst for the Chicago-based automotive pricing and information provider Cars.com. “Consumers are also responding favorably to the most recent design direction for Chrysler vehicles, thanks to the company's decision to allow mid-cycle changes to keep their line up fresh in an extremely competitive environment.”
Chrysler’s average transaction price increased 3.1 percent from the previous March, to $32,018, according to automotive vehicle valuation company Kelley Blue Book. Chrysler incentive spending increased 0.3 percent in the same period of time, to $3,349, according to vehicle pricing and information provider TrueCar, Inc. Higher transaction prices and lower incentive spending (what manufacturers offer to entice sales, such as providing rebates) improve profit margins.
Sales in the Chrysler brand, which includes the 200 compact car, the 300 full-sized sedan and the Town & Country minivan, declined 23 percent while Dodge brand sales grew 1 percent as sales growth of the Caravan minivan offset a decline in demand for the Avenger mid-sized sedan.
Chrysler’s winners and losers for the month:
Winners
- Demand for the Grand Cherokee jumped 26 percent to 15,940 units. The smaller all-new Cherokee has also done well with 36,906 vehicles sold in the first three months of the year.
- Ram pickup sales grew 26 percent to 42,532.
- Dodge Charger deliveries topped 10,000 units last month, a 15 percent increase over last year.
Losers
- Chrysler 200 sedan sales fell 55 percent to 7,531 ahead of the rollout of the second-generation version due out later this year.
- Sales of the Dodge Dart compact sedan declined 24 percent to 6,135 units.
- Deliveries of the Challenger pony car declined 20 percent from last year, to 4,882 units.