Joe Eberhardt is Chryslers executive in charge of global sales. While he has been pretty aggressive at expanding Chrysler's sales overseas (and done a good job judging by the impact Chrysler has made in Australia where essentially no American cars are sold), he's also the point man regarding the issue dealers have with Chrysler's bullying policy on taking cars they don't need or want in exchange for getting hot selling and high demand cars & trucks.

Other noteworthy items in the article:

*Wolfgang Bernhard is being eyed, possibly as a potential replacement for Tom LaSorda as CEO if Chrysler doesn't turn around soon.

*Chrysler still has 500,000 2006 model vehicles in it's inventory.

*60% of all Chrysler sales are trucks and SUVs.

No wonder they are suddenly in serious trouble!

http://www.thecarconnection.com/Auto...75.A11522.html

 

I am wondering if this is still some acid reflux from the rebate fiasco? Are consumers more likely to take a hit when buying a truck/suv?

 

So I take it this is a great time to get a new 2006 DCX product....

A close friend of mine works at the Dodge Ram/Dakota factory in Detroit. Lets just say they have only actually produced trucks for a few weeks out of the last two months and they are done with the 06's already. The week after Thanksgiving they started the line for 6 days to fill all the ordered trucks and then that was it done for 2006. Its not hard to catch up with demand these days when they can build 66 per hour.

 

Guy, don't even get me started on this topic

I'm still paying interest on cars Chrysler shoved at me back in June. I still have 45 2006 models in stock...that doesn't sound all that bad until you consider I've sold my entire new inventory down to about 100 units to try and cure my floorplan bill...so that's 45 leftovers and we're 20 days from the end of the year. Yeah, I'm a little screwed...but hey, there's still guys in my area with new '05 Durangos in stock At least I got rid of my last 2005 model (a PT GT Convertible) back in August. Oh yeah, that car was a "gift" from Chrysler too.

Chrysler will give me Nitros and 4 door Wranglers IF I take cars out of their "bank." So while they're producing "hot new" vehicles that are rotting in banks, waiting to be used as bait for us poor suckers, customer orders go unfilled and those hot products aren't creating any additional market share...for a company that NEEDS market share. They send me cars I don't order so they have a home. I send them right back. They asked me to take 14 cars out of bank, and give me $8,000. I said no way (just as every other dealer is doing). Then they wanted to give me $7,200 to take 10 cars...I still said no. Now they sent me a letter asking me to take NINETEEN out of their bank, with no money. WTF is it with these people? The Northeast Business Center has 55,000 cars in stock, with no home for them. Its going to take a long, long time for the NEBC to find homes for those things...

Dodge Dakotas aren't being built because they need every bit of the $6,000 dealer cash '06s have right now in order to move them...they are so stupidly overpriced compared to a Tacoma or Colorado, it isn't even funny. Nice truck, iffy styling, awful pricing...

Daimler Chrysler is fu(king stupid, period. Like I said, don't get me started...if GM was screwing up this bad, I'd be screaming my head off on here. With DCX screwing up this bad, what the hell...my paycheck is smaller

 

Chrysler needs to do what Mr. Chrysler did with the left over Maxwells when he took over, sell them for $1 over invoice, or in this case $1 over build cost directly to the public. That will clear inventory and makes some cash quickly. Once that is done then slow down the factories making the unwanted models until there is actually reason to build them.

Jason, what models are the ones you can't get rid of (certainly not any LXs)?

 

Can you name the models that aren't selling?
i.e. Charger R/T, crossfire srt-6?
edit: the crossfire is selling for $46k base ($50k for the convertable)! What is the invoice for those cars? I mean wow! That is insane! They are no where near the performance of a C6. It is only a mid 13 second car!

 

I can only hope.

 

pretty grim sounding, Jason E.

I am sure the cars in the "bank" are cars everyone is "clamoring" for.

 

The bank cars consist of Grand Cherokees and Libertys (great for me, as I sell mostly Jeeps), Commanders (suck...), Pacificas (I still have 5, and just gave one away for invoice minus holdback because I was sick of paying $300/mo in interest on it...and it TOO was a bank car!!!), Dakotas (I sell these, but wouldn't volunteer for more if you paid me), Durangos (bwahahahahaha...wanna see a car with a rep for poor MPG??) Rams (still getting over the Mega Cab debacle...bring out a model, then stop advertising it 3 weeks later!!!), and probably some Magnums. I have an '06 Magnum R/T in stock...beautiful car...SIX HUNDRED DAYS OLD, as of yesterday. The Northeast does not buy Magnums...at all. I will order zero '07s. Nor will I order Pacificas...or PT Convertibles...maybe only 2 Commanders will be kept in stock at all times...and we need to cut further on Rams.

And therein lies the problem...all the stuff we can't sell is typically higher volume product. That's the stuff the UAW needs to pump out, but can't because it will sit in bank. Then, the stuff we do want gets dangled in our face, instead of delivered to our door.

91 Z28,
If Chrysler did what you propose, an angry dealer network would sue the crap out of DCX. We are having trouble selling cars ourselves...we don't need the factory becoming an instant wholesaler! Believe me...a lot of dealers are dumping '06s for invoice minus holdback...I know I am. If anyone comes in on a Pacifica, Charger or Commander, its net net...period.

The bottom line is that DCX didn't cut production, then tried to strongarm a dealer network that already had too much product for current interest rates to take more. We were told it was for the good of the mother ship. We got offered great dealer cash incentives to do it. And in the end, a lot of us are like "what the fu(k did we do that for?" Because a good 50% of what I took from bank in June is still rotting in my new inventory...and has eaten up in interest more than I made on the dealer cash, more than likely. I haven't tried to calculate it, because I may end up throwing the calculator through my office window

 

Jason...sorry to hear about your problems. Now's the time to use your creativity and move those leftovers any way possible (assuming DCX isn't handcuffing you on how you move the leftovers). You always seem to have good ideas and excellent knowledge of the industry, so I'm sure you will come up with something.

 

You are having a hard time moving Chargers? Wow -- I'm planning on buying one when my 01 Accord dies sometime in 2009ish timeframe. I need that big back seat for my three sons in boosters, some ***** under the hood, but not a grandpa car. Why aren't they selling?

 

Manufacturers are prohibited by state laws from selling directly to the public.

They've slowed the factories down (meaning they have 'em idled) in many cases.

I could see this coming.......for the past year and a half, there have been thousands of DCX cars and trucks lining the runways at Detroit Metro airport (...can't imagine the condition of the paint.......) ....further downriver inside the compound of an old steel works -- hundreds more..........

The bottom line is that no one is immune to market forces .....and being that we have an open market -- with about 270 nameplates out there to choose from......................well................this business ain't for sissies!!!

 

Jason E,
What do you think of the Nitro? The wife and I are seriously considering buying one. Thanks

Posaune

 

Scott,

Well, maybe that helps explain the ****-poor paint condition of some of these cars when they come in! I've had to repaint 2 Charger hoods before delivery due to bird crap etching that was on them when they came in, and I've had to repaint the roofs on a couple more as well...interesting...

posaune,
Honestly? It drives like a smoother, quieter Liberty...which is not a bad thing at all. We still sell boatloads of Libertys, despite being dated style-wise, IMO. I like the way the Nitro drives very much, but the interior, while a nice design, SCREAMS cheap materials IMO. Also, I personally can't get over the style of the nose...I don't like it, but many do.

I will say one thing...comparably equipped, it does seem to be cheaper than the Nox/Torrent, and does have a better engine...