With the first month of 2014 sales nearly wrapped up, we’ll soon get our first look at how the Jeep Cherokee has fared, following the initial shipment of delayed units. Much has been made of the Cherokee selling 10,000 units in November and 15,000 units in December: it was a great storyline for Chrysler to promote in the run-up to NAIAS, and one for the hometown media (in both Detroit and Toledo) to rally around. Left out of the cheerleading was the fact that these figures accounted for the 25,000 units reportedly sent to dealers in one fell swoop. Can you say “pent up demand”?
But even if the Cherokee continued to sell at that pace – say, 15,000 units per month as an optimistic projection, where would that place it in the larger picture of the small crossover segment?
The launch of the Chrysler 200 means Chrysler has to make some decisions about its future; and the most likely course of action for them is to kill off the Dodge Avenger, right away.
News of Mitsubishi’s rebadging of Renault-Samsung vehicles for the US market is being greeted with far less enthusiasm around these parts than one would expect the internet to greet news of any French vehicles coming to America. One angle that isn’t being explored much comes from commenter callisall, who writes
if anyone else was scratching your head (like I was) about how Mitsu makes money in the USA, Mitsu is the third largest seller of cars to subprime borrowers behind Chrysler and Dodge.
So by outsourcing its R&D and focusing on the subprime market (and perhaps parts for its cars), it looks like Mitsu can make its US operations worthwhile.
If you want to see the future of Holden in Australia, this is it. Yes, it’s the same car that Jack Baruth took to the woodshed in today’s edition of TTAC, but it’s also a harbinger of things to come for the iconic Australian marque, with the announcement that Holden’s Elizabeth, Australia plant will be tooling up to produce the first ever front-wheel drive Commodore. And even that looks doubtful.
Another day, another turnaround strategy from Sergio Marchionne. The plan, which won’t be revealed until April, reportedly includes a rear-wheel drive architecture as a key element, with enough flexibility to be used in everything from Alfa to Dodge vehicles.
Back in the 1950s, when Europe was still rebuilding after World War Two, Ford Motor Company and General Motors decided to show the world what a cost-no-object car was like in the American idiom. First Ford introduced the 1956 Continental Mark II, hand assembled down to the component level, that was said to lose $1,000 on each and every $10,000 Mark II sold. Adjusting for inflation, that loss is the equivalent about $8,600 in 2013 money. A year later, GM started selling the Motorama influenced Eldorado Brougham, at an even steeper $13,074. Motor City lore has it that not only was the Eldo Brougham thousands more expensive than the Mark II, its loses exceeded those of the Mark II by thousands of dollars as well. Now the Sanford C. Bernstein brokerage has looked at how much money various European automakers have lost on particular cars since 1997.
Chrysler has decided to delay production of the Jeep Cherokee again as the company seeks to iron out further quality issues with their crucial new product.
PSA, parent company of Peugeot and Citroen, is said to be exploring a partnership with China’s Dongfeng, as Peugeot looks for ways to strengthen itself amid weak sales and a perpetually sputtering European car market.
GM and Unifor (the union formerly known as the CAW) have reached a tentative agreement for the 2,500 workers at the CAMI plant in Ingersoll, Ontario, which builds the Chevrolet Equinox and GMC Terrain.
Mercedes-Benz E-Class sales shot up 44% in August 2013, a 2008-unit gain. This improvement followed up on July’s 10% year-over-year improvement, which put an end to four consecutive months of decline for the now-recently facelifted E-Class, Mercedes-Benz’s core midsize model.
Europe’s car market is still a good half-decade away from making a recovery, according to Ford’s top man in Europe. Reuters quotes Stephen Odell, Ford’s European CEO, as anticipating a $1.8 billion loss in Europe this year, stating
“There are indications that an end of the decline may come in the second half of this year. However, a recovery of the market, we estimate, will take at least five to six years.”
After closing multiple plants and cutting thousands of jobs in response to major overcapacity issues and declining demand, Odell stated that he anticipated no further restructuring moves on the continent.
For the fourth consecutive month, Canadian auto sales increased in July 2013. An extra 10,600 units translated to a 7% increase, the second-best improvement so far this year. Passenger car volume, which travelled in the wrong direction in the first half of 2013, jumped 11% in July.