Chrysler Sales Drop Tracked US Average Through Mid-May -JD Power
20 Mai 2009 - 9:57PM
Dow Jones News
Sales of Chrysler LLC vehicles in the U.S. are tracking broader
industry declines through early May, according to an early look at
new data.
The mid-month survey by J.D. Power and Associates suggests the
auto maker is not being punished by buyers following its April 30
bankruptcy filing and subsequent restructuring efforts.
General Motors Corp. (GM) sales declined slightly more than the
industry average, according to the data, due to be released
Thursday. Ford Motor Co. (F) had the strongest showing among the
major manufacturers.
J.D. Power does not disclose numbers in its updates, just
trends, but predicts May U.S. industry sales will come in at a
seasonally-adjusted selling rate of 9.3 million, the same as in
April.
Jeff Schuster, its executive director of global forecasting,
said that while the market shows no signs of a rebound, the
dramatic declines that began in 2007 appear to be leveling off.
Chrysler's performance mirrors anecdotal evidence from
executives and dealers, and follows a period when it has
underperformed the industry. It suffered a 48.1% fall in U.S. light
vehicle sales in April, compared with the 34.4% industry
decline.
GM had outperformed the sector in April with a 33.1% fall
year-on-year.
Bargain-hunting is likely driving traffic to Chrysler showrooms
as consumers seek discounts from dealerships going out of business
as part of the auto maker's plan to eliminate about one-quarter of
its sales outlets.
"You can take away from this that people have not stayed away
from showrooms," said Schuster, executive director of global
forecasting. "What keeps people away more than anything is just the
uncertainty."
Schuster said that while consumers may be shopping for deals,
Chrysler's average discounts aren't off the charts. "They may not
be getting the deals they expected," he said.
Showroom traffic appeared to increase in Chrysler dealerships
since the bankruptcy filing, J.P. Morgan analyst Himanshu Patel
wrote in a research note. However, he said, many dealers reported
getting lowball offers from deal seekers.
"We sense discontinued dealers are strongly incentivized to deal
while they still receive full manufacturer support," Patel wrote.
"Also, consumers are likely finding good deals on aged inventory
which cannot be resold to continuing Chrysler dealers who are
looking to clear out their own late-model vehicles."
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com.