💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Chrysler US Sales - What A March!

Published 04/01/2014, 08:46 AM
Updated 04/01/2014, 09:00 AM
Chrysler US Sales - What A March!

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.

© Bill Pugliano/Getty Images. The new 2015 Chrysler 200 is shown in the Paint shop at the Sterling Heights Assembly Plant March 14, 2014 in Sterling Heights, Michigan. The plant, originally slated for closure in 2010, was transformed by an investment of more than alt=

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.

© Reuters. Chrysler.

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. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.