Along with its rivals GM and Ford, Chrysler today announced its best retail sales month of 2009. The Auburn Hills automaker reported total sales of 79,010 units during the month of May, a 30 percent decline when compared to the same period a year ago.
Overall, sales for the Chrysler brand improved 32 percent over April while Dodge and Jeep increased 23 percent and 21 percent respectively.
Chrysler also announced new incentives for the month of June.
“Beginning June 2, Chrysler LLC is pleased to offer zero percent financing for 60 months through GMAC Financial Services on select 2009 model vehicles, or up to $4,000 Consumer Cash on 2009 model vehicles. In addition, current Chrysler LLC vehicle owners are eligible for $1000 Owner Loyalty cash on most 2008 and 2009 Chrysler, Jeep and Dodge vehicles. These offers are in addition to the $1000 Credit Union Bonus Cash on select products for qualified credit union members who finance their new vehicle purchase through a participating Credit Union under the Invest in America program. These incentives are valid through July 1, 2009.”
Yesterday, the U.S. Bankruptcy Court approved the sale of the majority of Chrysler LLC”s assets to a new company, Chrysler Group LLC, which will be owned by Fiat SpA.
Separately, Chrysler hopes to reopen most of its facilities by the end of June. The decision on which plants will open will be made by Friday when Fiat takes control of Chrysler Group LLC.
Chrysler LLC Posts Best Retail Month of the Year; Reports May 2009 Sales
* Chrysler LLC posts best retail sales month of 2009
* Chrysler, Dodge and Jeep brands post double-digit retail sales gains compared to previous month
* Jeep Wrangler sales continue upward trend increasing 4 percent year-over-year compared to May 2008
Auburn Hills, Mich., Jun 2, 2009 – Chrysler LLC today reported May U.S. total sales of 79,010 units, representing the best retail sales month of 2009 and a retail performance that was better than the industry average. Compared to May 2008, retail sales decreased 30 percent. During the month of May, Chrysler LLC did not produce any vehicles for fleet sales which resulted in a fleet sales reduction of 90 percent year-over-year for the same period.
“We are pleased that consumers responded to Chrysler’s reorganization by purchasing our products, resulting in our best retail sales month of the year,” said Jim Press, Vice Chairman and President – Chrysler LLC. “Overall our sales were above expectations during this month of transition.”
On June 1, the U.S. Bankruptcy Court approved the sale of the majority of Chrysler LLC’s assets to a new company, Chrysler Group LLC in alliance with Fiat S.p.A.
“The uncertainty that has been surrounding Chrysler for the last few months is coming to an end, and a vibrant, new company is beginning to take shape,” Press added. “One that will better serve our customers and dealers with a broader and more competitive lineup of environmentally friendly, fuel-efficient, high-quality vehicles.”
May Sales Highlights
* May was the best retail sales month of 2009, with 74,741 retail units sold.
* Chrysler’s retail market share is higher than May of last year and also stronger than last month
* Jeep Wrangler continued its strong upward sales trend for the fifth month in a row, with May retail sales up 4 percent year-over-year compared to May 2008 and up 8 percent compared to the previous month. Wrangler also increased its share of the segment for the fifth month in a row
* Chrysler brand retail sales improved 32 percent compared to the previous month
* Dodge brand retail sales increased 23 percent compared to the previous month
* Jeep brand retail sales were up 21 percent compared to April 2009
“May was a very encouraging retail month for Chrysler and the industry,” said Steven Landry, Executive Vice President North American Sales and Marketing, Service and Parts – Chrysler LLC. “Retail sales for the industry came in stronger than expected and our retail performance during our restructuring was even stronger than the industry, giving us improved share and optimism that the market is showing signs of life.”
Compared to the same time period in 2008, Chrysler LLC’s total sales decreased 47 percent. The Company finished the month with 260,407 units representing an 86 day supply. Inventory is down 37 percent compared with May 2008 when it totaled 412,009 units.
Chrysler is taking actions to assist in the redistribution of remaining eligible inventory of dealers who had their sales and service agreements rejected. The inventory from the rejected dealers will be matched with dealers who are moving forward with the new company and need to replenish their inventory or acquire inventory for additional brand lines they may add.
– By: Omar Rana