DETROIT — Chrysler emerged from bankruptcy in 2009 as a weak automaker with few new cars and trucks in its pipeline, leaving many to doubt whether the company could survive — let alone boost sales and gain market share.
But for nearly five years the automaker, which has been renamed FCA US, has done just that.
Every month, for the past 56 months, FCA US has sold more new cars and trucks than for the comparable month from the prior year. It’s a record the Auburn Hills automaker is proud of.
“Back in the summer of 2009, when we emerged from bankruptcy and going into 2010 … a lot of people had Fiat Chrysler completely written off,” said Reid Bigland, head of U.S. sales. “And yet we continued to keep our head down.”
At the time, many analysts and competitors dismissed the automaker’s gains as somewhat expected given how far the company’s sales fell during the recession.
Others said the sales gains were driven by big incentives. Another often cited factor was FCA US’ dependence on fleet sales.
And while there was some truth to each of those points, those explanations also don’t tell the full story.
“I think the conversation is really now starting to shift to our product,” Bigland said. “Because … when you have gone almost five years, it silences a lot of people who have alleged you have easy comparisons.”
FCA US’ share of U.S. auto sales has increased from 8.9 percent in 2009 to 12.6 percent for the first 11 months of this year.
Bigland said the automaker should get credit for a series of well-timed new or redesigned models that have proven to be popular.
The modern-looking Cherokee, which debuted in the fall of 2013, replaced the company’s boxy, gas-drinking Liberty. Its looks were roundly criticized by Jeep enthusiasts but have proven to be a hit with mainstream consumers.
Through November, consumers bought 160,793 Jeep Cherokees, putting to rest most of the complaints by enthusiasts about its design. Sales of the Jeep brand were up 43 percent over the first 11 months of the year.
Meanwhile, Ram has been sneaking up on its rivals over the past several years. Ram’s share of full-size pickup sales in the U.S. has grown from 11.6 percent in October 2009 to 22.4 percent. The gain was helped by the introduction of a redesigned Ram 1500 in 2012 and a diesel engine option introduced earlier this year.
This year, competitors have complained about Ram’s aggressive incentives. Currently, Chrysler is offering incentives that total $4,700 off of the 2014 Ram 1500 Big Horn, which starts at $30,590.
For the year, Bigland argues that Ram’s incentives aren’t much higher than the F-Series or Chevrolet Silverado incentives.
“From an incentive spend per unit Ford, GM and Ram are generally right on top of each other,” Bigland said.
The all-new Chrysler 200 also has helped the automaker this year. Sales of the Chrysler 200 topped 14,000 in November.
That’s still only about half of monthly volume for top-selling midsize sedans such as the Toyota Camry, Honda Accord and Nissan Altima.
Still, 11,000 of the Chrysler 200s sold last month were purchased by retail customers rather than less-profitable fleet customers. And, Bigland said, the Chrysler 200’s sales momentum continues to build every month.
FCA US has achieved its sales gains while cutting back dramatically on its fleet sales.
For the three months ending Sept. 30, only 18 percent of Chrysler’s sales came from fleet buyers.
That’s much less than Ford and GM. So far this year 28 percent of Ford’s sales have been to fleet buyers while 24.5 percent of GM’s sales have been to fleet buyers.
“Six or seven years ago … we had a lot of fleet,” Bigland said, but so far this year, Chrysler’s retail sales are up 18 percent, Bigland said, “So the strength has really come at retail. … And our share growth has really come from our retail sales growth as well.”
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