Wall Street Journal

DETROIT -- Chrysler's hemi-powered turnaround suddenly looks like it's running on fumes.

In a surprise move yesterday, DaimlerChrysler AG's Chrysler Group unit shook up its top sales and marketing management, amid a rocky start to 2006 that has left the German-American auto maker's U.S. unit with hefty inventories of unsold vehicles despite rising sales to rental fleets and big discounts. In May, Chrysler's sales skidded 8.4% and are down 2.5% through the first five months of the year.
[Gary Dilts]

Out are Gary E. Dilts, 56, senior vice president U.S. sales, and Raymond M. Fisher, 53, vice president sales, service and parts operations. The two executives will retire effective July 1, Chrysler said.

The company said Steven J. Landry, 47, currently president and chief executive officer of Chrysler Canada, will become vice president of sales and field operations. Mr. Landry had been in the Canadian job only a few months.

Michael Manley, 42, was named vice president for sales strategy and dealer operations, Chrysler said in a statement. Both will report to Joe Eberhardt, the executive vice president for global sales, marketing and service.

A year ago, Chrysler was Detroit's only hot car company, gaining market share and making money while its larger rivals foundered. Chrysler seemed to have hit a formula for success: Offer boldly designed cars and trucks, such as the Chrysler 300 C, greenlight cheeky, sometimes borderline bawdy advertising and promote heavily what rival Japanese and Europeans didn't offer, namely a big, beefy V-8 engine nicknamed "Hemi," a name redolent of the days when Detroit iron ruled the streets.
[Thomas LaSorda]

But this year, Chrysler has hit an air pocket, presenting a major challenge for Tom LaSorda, the manufacturing expert who was given the top post at Chrysler last September after Dieter Zetsche, leader of Chrysler's dramatic post-2001 turnaround, took over the parent company. Chrysler's woes carry risks for Mr. Zetsche, too. He needs Chrysler to stay profitable while he focuses on fixing problems at DaimlerChrysler's luxury Mercedes-Benz unit. And Mr. Zetsche's reputation as a turnaround leader could get tarnished if Chrysler bogs down so soon after he leaves.

Another sign of trouble for the company: In the first four months of the year, Chrysler's sales have been buoyed by heavy sales to rental fleets. For some models such as the Dodge Stratus sedan and Dodge Caravan minivan, about half of the vehicles sold went to rental fleets.

Rising gas prices have caused sales of its Dodge Ram trucks and sport-utility vehicles to stall. A new Jeep model, the seven-passenger Commander, has fallen short of expectations, and now inventory has piled up.

Perhaps most worrying, sales of Hemi-powered cars have slackened. Last year's hit, the Hemi-equipped Chrysler 300C sedan, is now sitting on dealer lots for an average of almost three months -- about a third longer than the industry average, according to the Power Information Network, a market researcher which collects detailed sales data from dealerships. "Inventory is growing. They're piling up," said the Power Information Network's Tom Libby.


More thoughts on Chrysler - http://www.autoextremist.com/page2.shtml#Rant

 

Doesnt surprise me......combination of gas hogs and gas prices always cause this problem. Not to mention, the demands for these vehicles were crazy last year....and this year everyone has one....so its not as high.

Quite frankly, they need to look at a lighter 4dr sedan.....4000lbs for a sedan is heavy...

 

**** my tank is under 3500lbs

 

1 other thing, the only vehicles averaging more then 25mpg for Dodge were the Neon and Stratus....your lucky if you do any better in anything else they offer....so thats really hurting sales a ton right now...

(I'm talking vehicles that are currently in production or just ended in the last 12 months)

 

I know sales on the ram and daks have fallen off the planet. We are going down for FIVE weeks after the July 4th holiday. One is for changeover. The other four are for "inventory adjustment."

Joe

 

It has been known for awhile that Chrysler makes heavy vechiles.... and gas hogs...


Its pretty hilarious driving by the State Farigrounds and seeing rows and rows of Rams lined up because they cant sell them