Durango sales likely to slip in '05
#1
Durango sales likely to slip in '05
More temporary layoffs are expected at the Newark plant
By LULADEY B. TADESSE / The News Journal
01/01/2005DaimlerChrysler's redesigned Dodge Durangos experienced stronger sales in 2004 compared with a year earlier, but analysts are not as optimistic for this year.
Sales of the Durango, assembled in Newark, are expected to decline in 2005 along with other full-size sport utility vehicles because of stiff competition within the segment and from midsize sport utility vehicles.
"The Durango had a solid year in '04," said Mike Jackson, senior manager for North American vehicle forecast at CSM Worldwide in Farmington Hills, Mich. "The vehicle started out to a pretty strong start, but it's a pretty competitive segment and a number of consumers are shifting away from a full-frame offering to a unibody vehicle."
In the first full-year following the Durango redesign, Chrysler ramped up production 42 percent to 161,000 vehicles, according to estimates from J.D. Power-LMC Automotive Forecasting Services in Troy, Mich. The revamped Durango, with its larger frame and Hemi engine, boosted its sales to 134,000 in 2004, up 24 percent from a year earlier.
Sport utility vehicles will continue to dominate the U.S. car and light truck market this year, but the full-size segment is expected to shrink by as much as 11 percent, analysts said. Part of the reason is that most of the trucks are experiencing a slowdown in sales since they are older models due to be refreshed within the next year. In addition, more consumers also are going after crossover vehicles, which look like trucks but are built on a passenger car chassis.
J.D. Power analysts project that Chrysler will only sell about 120,000 Durangos in 2005, or 10 percent fewer vehicles than last year. That would reduce production 8 percent from 161,000 to about 149,000 vehicles this year.
"It is losing more than the overall segment, which points to a high level of competition," said Catherine Madden, auto production analyst at Global Insight in Lexington, Mass., who estimates Durango sales will drop 10 percent while the full-size segment will slip 3 percent.
Madden said the expected poor performance means the Newark plant, which employs about 1,500 assembly workers, may have more temporary shutdowns to adjust for inventory if the production levels are not closely monitored and adjusted.
There was an 87-day inventory of Durangos in dealer lots in November, according to the latest data available. The plant will be temporarily shut down next week to reduce the number of unsold vehicles. The plant had closed for a week in September to adjust for inventory. Workers will receive about 95 percent of their pay during the layoff.
Contact Luladey B. Tadesse at 324-2789 or ltadesse@delawareonline.com.
-Matt-
By LULADEY B. TADESSE / The News Journal
01/01/2005DaimlerChrysler's redesigned Dodge Durangos experienced stronger sales in 2004 compared with a year earlier, but analysts are not as optimistic for this year.
Sales of the Durango, assembled in Newark, are expected to decline in 2005 along with other full-size sport utility vehicles because of stiff competition within the segment and from midsize sport utility vehicles.
"The Durango had a solid year in '04," said Mike Jackson, senior manager for North American vehicle forecast at CSM Worldwide in Farmington Hills, Mich. "The vehicle started out to a pretty strong start, but it's a pretty competitive segment and a number of consumers are shifting away from a full-frame offering to a unibody vehicle."
In the first full-year following the Durango redesign, Chrysler ramped up production 42 percent to 161,000 vehicles, according to estimates from J.D. Power-LMC Automotive Forecasting Services in Troy, Mich. The revamped Durango, with its larger frame and Hemi engine, boosted its sales to 134,000 in 2004, up 24 percent from a year earlier.
Sport utility vehicles will continue to dominate the U.S. car and light truck market this year, but the full-size segment is expected to shrink by as much as 11 percent, analysts said. Part of the reason is that most of the trucks are experiencing a slowdown in sales since they are older models due to be refreshed within the next year. In addition, more consumers also are going after crossover vehicles, which look like trucks but are built on a passenger car chassis.
J.D. Power analysts project that Chrysler will only sell about 120,000 Durangos in 2005, or 10 percent fewer vehicles than last year. That would reduce production 8 percent from 161,000 to about 149,000 vehicles this year.
"It is losing more than the overall segment, which points to a high level of competition," said Catherine Madden, auto production analyst at Global Insight in Lexington, Mass., who estimates Durango sales will drop 10 percent while the full-size segment will slip 3 percent.
Madden said the expected poor performance means the Newark plant, which employs about 1,500 assembly workers, may have more temporary shutdowns to adjust for inventory if the production levels are not closely monitored and adjusted.
There was an 87-day inventory of Durangos in dealer lots in November, according to the latest data available. The plant will be temporarily shut down next week to reduce the number of unsold vehicles. The plant had closed for a week in September to adjust for inventory. Workers will receive about 95 percent of their pay during the layoff.
Contact Luladey B. Tadesse at 324-2789 or ltadesse@delawareonline.com.
-Matt-
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#8
RE: Durango sales likely to slip in '05
If the durango had a normal bumber and non angry head lights I think it would be a pretty nice looking machine. Tail lights are also something I don;t like about it. They stole them from a chev pick up. Nice ram tail lights would work to fix that problem.
#9
RE: Durango sales likely to slip in '05
There's a new front end for the Durango coming in 2006.5 and an upscale Chrysler Version coming out in 2007 (possibly called the Chryselr Newport) with its own sheetmetal. I still think that whomever decided to make this vehicle a completely seperate platform instead of building it off of the DR (RAM) Platform should be fired. This inbetween bs has not worked at all as a selling point. I've talked with several friends that ended up with Suburabans/Yukons, etc., who said the Durango was just too small. Building it off of the Ram would have allowed us to use the fenders, hood, and front doors of the Ram just like GM does with their GMT800 platform. When the Jeep Commander comes out, that will eat more sales from the Durango as well. Great Job product planning people!