Chrysler puts '06 vehicles in used lots

http://www.detnews.com/apps/pbcs.dll/artic.../706200372/1148

Related to my earlier post http://priuschat.com/index.php?showtopic=2...mp;#entry358335.

They are going for #1 in sales :lol:

<div class='quotetop'>QUOTE(Tideland Prius @ Jun 20 2007, 09:34 PM) [snapback]465553[/snapback]</div>

I don't see the sales numbers as inflated. Once the dealer moved the unit into "used Inventory" the car was sold and retitled to the dealer. Now instead of a 1 year old new car with 1 mile sitting on the lot there is a 1 year old used car with 1 mile sitting on the lot. Just because the vehicle is moved into the loaner fleet doesn't mean it was driven. The end result is that sales units are up but gross profit is down as the dealer didn't make any money on the sale to his used car lot. IMO here is a manufacturer where a buyer should hold out and offer to pay no more than invoice.

<div class='quotetop'>QUOTE(Tideland Prius @ Jun 22 2007, 12:32 AM) [snapback]466217[/snapback]</div>

Company A sold 100 units to retail customers.

Company B sold 80 retail units and 50 wholesale units (to itself? to a subsidiary? to a seperate but related entity? I don't know if the Used Car Lot is a seperate entity.) The 50 cars driven to the other lot increase the used car inventory while decreasing the new car inventory.

Selling product or components to yourself is probably the oldest accounting scheme. It's not illegal but can be very dishonest. Dealerships probably aren't public companies so need not be audited.

You are correct that on a "corporate" level the sale of the 50 units would be eliminated. At least the financial statements should note the transfer of the 50 units.

In NJ the manufacturer's credit arm holds title to the new car. The dealer holds title to the used car. I don't believe Chrysler cares who buys the car as long as it is off their books and new car sales is the only thing they care about. Sales numbers are easily manipulated to acheive any desired result. Don't put too much faith in them.

Until Chysler re-learns how to build decent cars, sales will be a trouble spot for them.

Since the merger between Daimler-Benz and Chrysler, I'd say buid quality took a nose dive. On my 1999 Dodge Neon, the steering wheel and shift know both showed signs of wear and the paint never seemed like it held up very well to anything. On my 1999 Dodge Ram, the interior plastics were beginning to fall apart. On my wife's 2003 Dodge Intrepid, the dash was already beginning to crack and the paint seemed to continually degrade at a rapid pace in spite of my best efforts to maintain it with quality car wash products from Eagle1, Meguiar's, and Turtle Wax.

The cars they've produced recently only last for about a year or so before they begin to age rapidly. I've seen some 2002 and 2003 model cars with some nasty damage to the clearcoat on the paint. Fact of the matter remains that once Daimler-Benz took over, they treated Chrysler and Dodge like side ventures and only sought to make profit, rather than build a quality vehicle.

I hope the new CEO takes the company in a good direction. Chrysler was a good company once. Hopefully they'll get back to that.