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Tag: Costs
While Chrysler Group sends its Fiat 500 upmarket with Gucci special editions, its sending its Dodge, Chrysler and Ram brands downmarket with a lower prices, 90-days-same-as-cash deals and a variety of tie-ins. First up, the news [via Automotive News [sub]]that Chrysler is cutting the price on 200 and Dodge’s Avenger by $200, and the Dodge Journey by over $1,000 [UPDATE: plus,$3k off Grand Cherokee] is strange indeed. Chrysler’s sales, market share and transaction prices are up, while its incentives and fleet sales are down… and meanwhile, its key competitors are raising prices on increased material costs. Oh, and average transaction prices across the industry have been breaking records all year. With volume slow and prices (as well as costs) rising, Chrysler has no real reason to be lowering prices beyond hunting for volume that may or may not be there. At the expense, it must be added, of profitability. But if you look at Chrysler Group’s most recent maneuvers, it seems that lower prices might not an isolated move on market share. It seems that Chrysler Group is actually strategically positioning itself as the Wal-Mart automaker… literally.
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