: Chrysler's Increasing Production of Trucks and SUVs
HoosierMud 08-21-2009, 09:25 PM Chrysler has scheduled overtime at its Dodge Ram truck plant in Warren, Michigan, and a plant in Toledo, Ohio, that makes the Jeep Wrangler sport-utility vehicle, said the person familiar with the plans.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aAfkmrefkKSY
JoeBecker 08-21-2009, 09:54 PM Big mistake in my opinion. Vehicles were selling because of C4C. If I were Chrysler, I wouldn't be getting too giddy about sales in the next few months. When C4C is over on Monday so will be the "run" on vehicles.
You finally get your glut of inventory down and now what are you going to do? Put yourself in the same situation. STUPID!
HoosierMud 08-21-2009, 10:20 PM You finally get your glut of inventory down and now what are you going to do? Put yourself in the same situation. STUPID!
From the article, they apparently are producing more to meet consumer demands. I went by a Chrysler/Jeep dealership today, and there were NO Jeeps on the lot. Now, that is stupid!!!!
" ....will make more light trucks than it had planned in the second half to meet growing demand, ...."
Jeepster55 08-21-2009, 10:30 PM Big mistake in my opinion.
You finally get your glut of inventory down and now what are you going to do? Put yourself in the same situation. STUPID!
I agree.......hey Fiat, what are you THINKING? ARE you thinking? :mad:
Jeepster55 08-21-2009, 10:43 PM From the article, they apparently are producing more to meet consumer demands. I went by a Chrysler/Jeep dealership today, and there were NO Jeeps on the lot. Now, that is stupid!!!!
" ....will make more light trucks than it had planned in the second half to meet growing demand, ...."
yea, 'growing demand' NOW. what happens 'if' gas goes back up to $4/gal again? dealers will be stuck with the big gas-guzzling trucks and suv's and we'll still be many months away from having any of this 'new technology' from Fiat in the form of the '500'.
we have NOTHING on our lot. a transport came by yesterday and had 2 Jeeps on it: a white Liberty and a black Wrangler Sahara. we got the Libby. that's the first transport I've seen in about 10 days.
just checked our website....we have ONLY 34 NEW VEHICLES ON THE LOT! 33 of them are 2009's and one 2010 T&C. THIRTY FOUR! we usually have 150+ on the lot at any time! the breakdown is like this: Jeeps, we have 7 Libbys, 5 Grand Cherokees, 1 Wrangler, 1 Wrangler Unlimited and 1 Commander
Dodge, we have 6 Rams, 3 Chargers, 2 Dakotas, 1 Challenger, 1 Caravan and 1 Journey
Chrysler, we have 2 300's and 2 T&C's....THAT'S IT!
we can't get any product, so how are we suppose to stay in business? I really pity the dealerships that don't have a strong 'fixed operations' (parts and service) because with ours, we would have had to close. 30 cars for us is only about a 2 week supply.
something had better happen and happen FAST! :mad:
HoosierMud 08-21-2009, 11:13 PM we can't get any product, so how are we suppose to stay in business? I really pity the dealerships that don't have a strong 'fixed operations' (parts and service) because with ours, we would have had to close. 30 cars for us is only about a 2 week supply.
something had better happen and happen FAST! :mad:
If you READ the article, the person who is not identified, wouldn't give any specifics to what type of percentage increase they are talking about.
Now, you seem to be criticizing Chrysler, but at the same time, bit*hing because you don't have inventory. You can't have your cake and eat it, too.
In my business, if I don't have the inventory when my customer wants it, they will go buy from another supplier. It is a fine line of having too much inventory, and not having enough to satisfy customer wants/needs.
JoeBecker 08-22-2009, 07:54 AM They are scheduling overtime so that says to me they plan on building quite a few "extra".
It is a fine line of having too much inventory, and not having enough to satisfy customer wants/needs.
That is why this is a perfect opportunity to change the business model. Build orders that dealers got from an actual customer. Every vehicle is "custom". A perfect balance of supply and demand.
4 weeks is not a long time to wait for a vehicle, and I would say that wait time would be drastically reduced if the only vehicles in the queue are those that have a final owner.
Need a car immediately? The dealership could give you a loner to drive until yours arrives.
jepstr67 08-22-2009, 09:31 AM They are scheduling overtime so that says to me they plan on building quite a few "extra".
That is why this is a perfect opportunity to change the business model. Build orders that dealers got from an actual customer. Every vehicle is "custom". A perfect balance of supply and demand.
4 weeks is not a long time to wait for a vehicle, and I would say that wait time would be drastically reduced if the only vehicles in the queue are those that have a final owner.
Need a car immediately? The dealership could give you a loner to drive until yours arrives.
It's like talking to the wall. That is exactly what many of us on the Chrysler Advisory board have been telling them for a year. Build the cars people want exactly the way they want them, no packaged options, and reduce the number of unsold cars. Slashing prices at model year end can't be good for the bottom line.
When I went shopping for my 25D Patriot, there were a few out there, but they were all too far away to do a dealer trade. Build to order would eliminate the needless moving of inventory after it comes to a dealer.
HoosierMud 08-22-2009, 11:29 AM They are scheduling overtime so that says to me they plan on building quite a few "extra".
4 weeks is not a long time to wait for a vehicle,
I have been through these cycles of ups and downs in the auto industry several times. Living in a steel producing area, I am keen to these cycles and how it affects industry.
When the industry starts a boom period, they would not be able to produce cars fast enough under the JIT formula you are favoring.
If my XJ takes a dump on me tomorrow, I can't/don't want to wait four weeks for a new car. I don't need a car 'made to order".
I would certainly look at quality used cars if that becomes a common business model.
Let's see how long a dealer will be willing to 'loan' cars to purchasers of new vehicles In a boom year, that would be, what, 10, 12, 14, million loaners on the road. I just don't see it happening.
A reduction in option packages is in order.
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