24.2 percent of Chrysler 300s have been sold to fleet customers.
05-17-2005, 12:32 PM
#1
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24.2 percent of Chrysler 300s have been sold to fleet customers.
---just had to pull this outta one of the threads here.................
(Thank you, Darth!!!)
YOU KNOW WHO I'M DIRECTING THIS TO.............
Originally Posted by The Detroit News
By Eric Mayne / The Detroit News
To boost sales of its flagship sedan, Ford Motor Co. has quietly begun paying dealers $1,000 for every Five Hundred that leaves their lots.
It's the first national rebate program initiated by Ford since the vehicle was introduced six months ago.
But while Ford is struggling to improve sales and profits in North America, it has no plans to introduce customer cash incentives -- despite a setback in April sales for the car.
Ford sold 9,215 Five Hundreds last month, compared with sales of 9,375 in March. It was only the second month-to-month drop in sales for the car since its October introduction.
Ford officials are pleased with the car's early sales pace and say it has helped boost overall demand for the company's car line 3 percent this year.
"The trends are all upwards," said Dan Corby, general manager of North Brothers Ford in Westland.
Called bland and sluggish by some critics, the Five Hundred has been overshadowed by the flashy Chrysler 300.
The 300 has outsold the Five Hundred -- 49,089 to 31,515 -- this year through April.
"But we're closing the gap," said Ben Poore, Ford's car marketing manager.
Ford has limited sales of the Five Hundred to fleet users -- a major source of sales for many car models -- to build brand equity and enhance resale values of the car. Company officials say just over 14 percent of Five Hundred sales have been made to fleet customers who get profit-draining discounts for large volume purchases. In comparison, 24.2 percent of Chrysler 300s have been sold to fleet customers.
Ford spokesman Dave Reuter said the car is on track to meet the automaker's annual sales projection of 100,000 units. Along with the Freestyle crossover and the Fusion sedan -- coming this fall -- the Five Hundred is one of three new models Ford is counting on to replace the Taurus, once the nation's top-selling car.
Taurus production will end next year. Ford is replacing it with three vehicles because consumer tastes have become so diverse.
Bob Kurilko, vice president of online shopping guide Edmunds.com., says Ford's strategy is not unusual for a new model in such a competitive market segment as mid-size vehicles, which the Toyota Camry and Honda Accord dominate.
"Automakers try to introduce vehicles without incentives, then they progress to dealer cash because it's 'behind-the-scenes money,' " Kurilko said. "Customer cash is like 'a bruise on the brand.' It gives the impression, and rightfully so, that manufacturers are paying customers to buy the car."
Dealer incentives are intended to provide the seller with some room to negotiate on price.
"It clearly will help to close deals," Poore said.
(Thank you, Darth!!!)
YOU KNOW WHO I'M DIRECTING THIS TO.............
Originally Posted by The Detroit News
By Eric Mayne / The Detroit News
To boost sales of its flagship sedan, Ford Motor Co. has quietly begun paying dealers $1,000 for every Five Hundred that leaves their lots.
It's the first national rebate program initiated by Ford since the vehicle was introduced six months ago.
But while Ford is struggling to improve sales and profits in North America, it has no plans to introduce customer cash incentives -- despite a setback in April sales for the car.
Ford sold 9,215 Five Hundreds last month, compared with sales of 9,375 in March. It was only the second month-to-month drop in sales for the car since its October introduction.
Ford officials are pleased with the car's early sales pace and say it has helped boost overall demand for the company's car line 3 percent this year.
"The trends are all upwards," said Dan Corby, general manager of North Brothers Ford in Westland.
Called bland and sluggish by some critics, the Five Hundred has been overshadowed by the flashy Chrysler 300.
The 300 has outsold the Five Hundred -- 49,089 to 31,515 -- this year through April.
"But we're closing the gap," said Ben Poore, Ford's car marketing manager.
Ford has limited sales of the Five Hundred to fleet users -- a major source of sales for many car models -- to build brand equity and enhance resale values of the car. Company officials say just over 14 percent of Five Hundred sales have been made to fleet customers who get profit-draining discounts for large volume purchases. In comparison, 24.2 percent of Chrysler 300s have been sold to fleet customers.
Ford spokesman Dave Reuter said the car is on track to meet the automaker's annual sales projection of 100,000 units. Along with the Freestyle crossover and the Fusion sedan -- coming this fall -- the Five Hundred is one of three new models Ford is counting on to replace the Taurus, once the nation's top-selling car.
Taurus production will end next year. Ford is replacing it with three vehicles because consumer tastes have become so diverse.
Bob Kurilko, vice president of online shopping guide Edmunds.com., says Ford's strategy is not unusual for a new model in such a competitive market segment as mid-size vehicles, which the Toyota Camry and Honda Accord dominate.
"Automakers try to introduce vehicles without incentives, then they progress to dealer cash because it's 'behind-the-scenes money,' " Kurilko said. "Customer cash is like 'a bruise on the brand.' It gives the impression, and rightfully so, that manufacturers are paying customers to buy the car."
Dealer incentives are intended to provide the seller with some room to negotiate on price.
"It clearly will help to close deals," Poore said.
05-17-2005, 01:50 PM
#5
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Re: 24.2 percent of Chrysler 300s have been sold to fleet customers.
Originally Posted by Bob Cosby
I guess I'm kind of lost here.....but so what?
Umm...I'm with Bob.
Sales are sales, profit is profit. Who cares if you have 100,000 sales to consumers or to a fleet? Obviously your margin is going to be less on fleet sales but the goal is to make money and stay in business.
05-17-2005, 01:57 PM
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Re: 24.2 percent of Chrysler 300s have been sold to fleet customers.
Originally Posted by guionM
Someone.... not mentioning names..... ridiculed some Hummers going to rental fleets. 
05-17-2005, 02:03 PM
#9
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Location: Panhandle of West Virginia
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Re: 24.2 percent of Chrysler 300s have been sold to fleet customers.
Seems to me that the article is saying that Ford 500 sales is lagging because they are not selling as many to rental fleets and because they still have competition from the Taurus. Add to that the lack of the 3.5 and sales are less than steller. At least that is what I am getting from it
05-17-2005, 02:24 PM
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Re: 24.2 percent of Chrysler 300s have been sold to fleet customers.
Originally Posted by Chris 96 WS6
Sales are sales, profit is profit. Who cares if you have 100,000 sales to consumers or to a fleet? Obviously your margin is going to be less on fleet sales but the goal is to make money and stay in business.
05-17-2005, 02:28 PM
#11
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Re: 24.2 percent of Chrysler 300s have been sold to fleet customers.
Thats about right Scott. Yep, those sales of the 500 sure are lagging........... they were down about 150 units from March 
The articles failed to mention that sales of the Montego were up, and the Freestyle was way up. They also fail to mention that, if current sales volume continues, they will not only meet projected sales goals, but surpass them (projected sales for the 500 was 100K units annually).
That they have done so with few fleet sales, and no direct to consumer incentives could actually be perceived as a success............. that is............... if the media would actually ever really report that.
Manufacturer to dealer incentives go on everywhere. Where are the figures for the 300??? We already know that there is a $1000 rebate on them, but what about behind the scenes money??? Of course noone will report that, as it does not prove their theory that the 300 is a runaway success, and the 500 is a dismal failure.
(BTW, this same type of reporting is happening on the G6. It doesn't matter how good sales will get, the media will find some aspect that isn't glowing........... and that will be the only thing they report on)
The articles failed to mention that sales of the Montego were up, and the Freestyle was way up. They also fail to mention that, if current sales volume continues, they will not only meet projected sales goals, but surpass them (projected sales for the 500 was 100K units annually). That they have done so with few fleet sales, and no direct to consumer incentives could actually be perceived as a success............. that is............... if the media would actually ever really report that.
Manufacturer to dealer incentives go on everywhere. Where are the figures for the 300??? We already know that there is a $1000 rebate on them, but what about behind the scenes money??? Of course noone will report that, as it does not prove their theory that the 300 is a runaway success, and the 500 is a dismal failure.
(BTW, this same type of reporting is happening on the G6. It doesn't matter how good sales will get, the media will find some aspect that isn't glowing........... and that will be the only thing they report on)
05-17-2005, 02:35 PM
#12
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Re: 24.2 percent of Chrysler 300s have been sold to fleet customers.
Originally Posted by Z28x
Some people Bash GM for having fleet sale... and paise the 300 for being the sale God that GM can't build.
05-17-2005, 02:41 PM
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Re: 24.2 percent of Chrysler 300s have been sold to fleet customers.
Originally Posted by 94LightningGal
Manufacturer to dealer incentives go on everywhere. Where are the figures for the 300??? We already know that there is a $1000 rebate on them, but what about behind the scenes money??? Of course noone will report that, as it does not prove their theory that the 300 is a runaway success, and the 500 is a dismal failure.
Yet, praised the 300... well, when he's not hyping up Nissans, anyway.
