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Wednesday, June 27, 2007
Fleet queens (25% or more; 50% or more in bold):
http://www.fleet-central.com/a...b.pdf
| Quote » |
Chevy Cobalt 39.7% Notes: No Toyota or Honda model met the 25% standard (although the Toyota Highlander was at 23.6%). The highest Honda was the Accord at 4.9%. The Chrysler group, minus most of Jeep, had insanely high fleet sales. Hyundai/Kia resembled a Detroit 3 maker in terms of fleet as well. No full sized pickup met the standard, and of compact pickups, only the ancient Ranger did. |
Cerberus may be buying Chrysler at a good time
- The 2008 Dodge Challenger is seen at the Chrysler Proving Grounds in Chelsea, Mich., where it was being road tested prior to the start of production for the new model year.
- Click to view a larger picture
Several new vehicles coming out in fall
CHELSEA, Mich. — With its purchase of Chrysler looming, Cerberus Capital Management LP could be buying control of the struggling automaker at a good time.And the best reason for the $7 billion acquisition for a controlling stake in the DaimlerChrysler AG unit might wind up being the products — not the bargain price — according to one analyst.
A new version of Chrysler’s stalwart minivan is scheduled to come out this fall, and Jeep sales continue to rise.
But the minivan is the can’t-miss product that should have Cerberus smelling like a rose in a year, said Erich Merkle, vice president of forecasting for auto consulting company IRN Inc. in Grand Rapids.
“If I’m Cerberus, I’m buying Chrysler for dirt . . . right on the cusp of one of the biggest product launches in the decade,” said Merkle, referring to the redesigned 2008 Chrysler Town & Country and Dodge Grand Caravan. He was attending an event Thursday to showcase Chrysler’s 2008 models at the automaker’s Chelsea Proving Grounds. “That’s the next hit.”
Even with their dual-screen DVD players and Swivel ’n Go seating and storage system, the minivans were easy to overlook amid many sexier 2008 models on display, including the Dodge Magnum, Viper SRT10 and even the Jeep Liberty, with its bolder, boxier frame and exclusive full-length open canvas roof.
But Merkle said the minivans, which represent about 20 percent of Chrysler’s sales, are its “ace in the hole.”
“There may be products where [Chrysler] doesn’t hit the mark. But their core competency is the minivan — that’s one thing they don’t screw up.
“GM and Ford moved away from it — not because the segment is poor but because . . . Honda and Toyota beat ’em,” referring to the Japanese automakers’ Odyssey and Sienna, respectively.
On top of that, Merkle said, Chrysler is gearing up for the next-generation 2009 Dodge Ram. The pickup is the automaker’s second-best-selling product.
“You’ve got a one-two punch coming up for Chrysler.”
Some promising products are also timely for Chrysler, which made $1.8 billion in 2005 but lost $618 million in 2006 and $1.98 billion before interest and taxes in the first quarter of this year.
DaimlerChrysler agreed last month to transfer an 80.1 percent stake in Chrysler to Cerberus, a New York-based private equity firm. Daimler bought Chrysler in 1998 for $36 billion.
As part of the $7.4 billion takeover cost, Cerberus would invest $6.05 billion in Chrysler, and its financing arm would pay DaimlerChrysler $1.35 billion. The two companies expect to close the transaction in the third quarter.
Chrysler brand sales are down 9.8 percent for the first five months of the year, and Dodge is off 1.9 percent for the same period, according to Autodata Corp. Jeep sales are up 12.2 percent.
One of last year’s big hopes, the redesigned Chrysler Sebring, failed to woo buyers of the Toyota Camry, Honda Accord and other midsize competitors. Still, Chrysler’s success with the 300 and 300C sedans and Dodge Magnum crossover helped it make money in 2005.
“They run in streaks,” Merkle said.
Frank Klegon, executive vice president for product development, said the company’s future pipeline is strong, with 20 new products and 13 revamped vehicles coming out between 2007 and 2009.
“No one succeeds in our business without innovation, and distinctive products that respond to the customer are a must,” he said.
Aaron Bragman, an analyst with Global Insight in Troy who also attended Thursday’s event, said the jury’s still out on whether Cerberus will find it so rosy.
“New products have to be extremely successful,” he said, adding the new minivans offer refinements but not exactly a revolution.
“The competition is extremely good. . . . It’s such a tough segment that its two domestic competitors have gotten out of it.”
Report: DaimlerChrysler CEO Optimistic
Associated Press 06.25.07, 6:31 AM ET
DaimlerChrysler AG's chief executive said that "the next years will be good" for the newly unbound Daimler AG and indicated that the risk of a takeover has diminished, according to an interview published Monday.
DaimlerChrysler (nyse: DCX - news - people ) agreed last month to sell 80.1 percent of its stake in money-losing U.S. unit Chrysler to the private equity firm Cerberus Capital Management LP, paving the way for a streamlined Daimler to concentrate on its luxury Mercedes brand and truck business.
"The next years will be good," CEO Dieter Zetsche was quoted as saying in the daily Tagesspiegel.
"We are not thinking of a further product offensive with brand-new vehicles," he added. "We are well placed in the breadth of our very young range of models and are now concentrating on becoming even better with the successors to individual models."
Zetsche also said that Daimler is now more firmly in control of its own future.
"The risk of others exerting influence on the company, in an unwanted way, is now significantly smaller," he said.
"The doubling of the market value already has happened and so (it) is no longer a sausage that would be worth snatching at for financial investors," Zetsche said.
DaimlerChrysler shares were down nearly 1.9 percent at 66.45 euros ($89.32) Monday in an overall lower Frankfurt market.
Report: DaimlerChrysler Expects Good Years
Associated Press 06.25.07, 6:31 AM ET
DaimlerChrysler AG's chief executive said that "the next years will be good" for the newly single Daimler AG and indicated that the risk of it becoming a takeover target have diminished, according to an interview published Monday.
DaimlerChrysler (nyse: DCX - news - people ) agreed last month to sell 80.1 percent of its stake in money-losing U.S. unit Chrysler to the private equity firm Cerberus Capital Management LP, paving the way for a streamlined Daimler to concentrate on its luxury Mercedes brand and truck business.
"The next years will be good," CEO Dieter Zetsche was quoted as saying in the daily Tagesspiegel.
"We are not thinking of a further product offensive with brand-new vehicles," he added. "We are well placed in the breadth of our very young range of models and are now concentrating on becoming even better with the successors to individual models."
Zetsche also indicated that Daimler is now more firmly in control of its own future.
"The risk of others exerting influence on the company, in an unwanted way, is now significantly smaller," he was quoted as saying, adding that the company "has addressed and solved many issues in the last year - these initiatives generate confidence."
"The doubling of the market value already has happened and so (it) is no longer a sausage that would be worth snatching at for financial investors," Zetsche said, according to the report.
DaimlerChrysler shares were down nearly 1.9 percent at euro66.45 (US$89.32) Monday in an overall lower Frankfurt market.
Iamge of the week: Bamboo Jeep
Philippine Bamboo Jeep Featured at BoingBoing.net
One of my favorite sources of "bloggables", boingboing.net recently featured a proudly Philippine Made vehicle: The Bamboo Jeep!
Auto/Mate Certified by Chrysler for ARO
Auto/Mate Dealership Systems announced today that its AMPS dealer management system has been certified by Chrysler for ARO. Chrysler dealers using AMPS can now seamlessly connect to Chrysler's ARO parts inventory management system. ARO connects dealer spare parts inventory to a Mopar-controlled automatic daily replenishment order. It's unique to the industry because it's based on individual dealer demand. ARO replenishes parts on an as-needed basis, reducing the capital investment that a dealer makes in stocking excess parts. Clifton Park, NY June 25, 2007 -- Auto/Mate Dealership Systems, ranked the highest for overall customer satisfaction in the last three NADA surveys, announced today that its AMPS dealer management system has been certified by Chrysler for ARO. Chrysler dealers using AMPS can now seamlessly connect to Chrysler's ARO parts inventory management system. ARO connects dealer spare parts inventory to a Mopar-controlled automatic daily replenishment order. It's unique to the industry because it's based on individual dealer demand. ARO replenishes parts on an as-needed basis, reducing the capital investment that a dealer makes in stocking excess parts. "ARO is a unique system in that it maximizes the efficiency of dealer capital invested in parts inventory," said Mike Esposito, President and CEO of Auto/Mate. "The time savings and cost advantages it offers are very exciting to our Chrysler dealers."
The certified interface allows Chrysler to query Auto/Mate's AMPS DMS every night. Chrysler monitors each individual dealer's inventory and sales based on what was sold, then ships parts overnight based on what the system tells them is needed the next day. Dealers can maintain control by reviewing and agreeing upon recommended stocking parameters, and may revise them as necessary. Years of accumulated data from Chrysler dealers was used to develop ARO's accurate forecasting model that takes the guesswork out of stocking parts. The parts replenishment process is completely automated and once installed, the dealers don't have to do a thing. Chrysler ARO also offers an order guarantee, whereby if parts sit on a dealer's shelf for nine months the OEM will buy them back. However, the system is so advanced that it monitors and compares dealers' inventory needs across the country. If Dealer A in one location needs a part that happens to be aging in Dealer B's inventory, Chrysler will send a shipping label to Dealer B so they can forward the part to Dealer A. About Auto/Mate Auto/Mate Dealership Systems was established 25 years ago with a simple goal: to provide an efficient and reasonably priced computer system to increase dealers' profitability. Designed by former auto dealer executives, AMPS (Automotive Management Productivity Suite) by Auto/Mate offers more than 20 fully integrated modules to suit any size dealership and to address every need, including Sales, F&I, Fixed Operations, Accounting, CRM, Fleet Sales and more. Auto/Mate's success has led to a continuous growth rate of more than 30% per year, with its system currently in use by more than 400 dealers. In three combined surveys conducted by NADA, Auto/Mate has ranked the highest in customer satisfaction over any other dealer system. AMPS by Auto/Mate Dealership Systems is powerful, scalable and has a unique, graphical interface that makes it familiar and easy to use. AMPS is an open system and will run on most computer hardware that a dealer has in place. When compared to other systems on the market, AMPS offers the most value per dollar, allowing dealerships to operate more efficiently and profitably. For more information, please visit www.automate.com. |
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