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Chrysler Groupâs U.S. Division Outsells Fordâs Domestic Brands in January

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It’s true. Chrysler Group’s three divisions outsold Ford’s domestic brandslast month, an unusual scenario that had much more to do with plummeting volumes at the blue-oval than anything Chryco’s doing.

Still, Chrysler, Dodge and Jeep have a number of hot products right now, starting with the latter brand’s new Wrangler that more than doubled sales in January thanks to the addition of the new four-door Unlimited model, adding much needed functionality and tremendous value to an ever-growing compact SUV segment. Jeep’s new Compass is mapping new territory for the brand too, while Caliber remains hot for Dodge. No doubt fleet sales have helped Chrysler Group too, with the new Sebring pulling in orders from rental companies
The Jeep Wrangler Unlimited targets the compact SUV market square on, and is selling well for this reason. (Photo: DaimlerChrysler)
and large businesses alike.

Despite lackluster sales over at Ford, both Dearborn and rival GM overin Detroit were putting on happy faces while announcing their January sales reports, according to Automotive News. More than just smiling in the face of danger over reduced market share and increasing losses, they were happy to report that the sales decline was the result of fewer fleet deliveries.

Happy smiles might have shed a little sunshine on a gloomy day,
Fusion is paying off for Ford, but a more diverse product portfolio will help it keep up in the numbers/market share game. (Photo: Ford)
but no amount of positive spin could change the fact that only 50.5 percent of the U.S. market was taken by domestic brands in January. This means that the imports won an unprecedented 49.5 percent of new vehicle buyers, a narrow margin of only one percent that points toward a very real potentiality of imports taking over the lead entirely in the near future.

Despite Fusions, Edges, Auras, G6s, Wranglers and Calibers,all very good cars within their hotly competitive segments, domestic brand market share has dropped 5.2 percent since January 2006, when GM, Ford and Chrysler Group held a total of 55.7 percent. Ouch!

So, what are imported brands
The Sky is selling well for a niche product, but big volume will come from the new Aura and Malibu in the midsize sedan segment, and GM's new crop of midsize crossovers. (Photo: GM)
doing that the domestics aren’t? It wouldn’t be fair to reduce it to something so simplistic. Generally, the new crop of domestic cars, trucks and SUVs have never been better, with most coming close to, if not sometimes exceeding their imported competition when it comes to styling, quality and fit and finish. They almost always offer more features for the same or better pricing too, so what’s the problem?

No doubt, a general perception about domestic vehicles not being as well made or as reliable will be hard to overcome. Just like premium automakers such as Mercedes-Benz and BMW somehow maintain an image for high quality and dependability, independent owner surveys reveal the ugly truth, most German brands scrape the bottom half of the reliability barrel, while Jaguar beats them all. Most domestics, on the
It remains the usual suspects crowding out the domestics, namely cars like the Camry and Accord. (Photo: Toyota)
other hand, edge into the top half or occupy the middle road, so buyer perceptions might not be that fair in this regard. Nevertheless, what’s fair hardly counts when it comes to making sales and returning to profitability, and only time changes perceptions – a reality that those aforementioned premium brands continue to enjoy.

Until buyers start taking GM and Ford more seriously, however, sales will most likely continue to falter. Ford was down a staggering 19.6 percent from January 2006, and GM, otherwise in nearly as dismal shape, looked almost rosy in comparison with a loss of 16.7 percent. DaimlerChrysler, contrarily, looked more like the import automaker that its German parents try to downplay, up 0.5 percent over January last year.

While it’s difficult to know what the future holds, the domestics had better prepare for fewer sales and more losses over the short haul, and hope that their individual long-term vision carries them into profitability in the not-too-distant future.



 
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