Chrysler Global Sales Increase of 11 Percent in May Is Below Marchionne's Target
Chrysler Group LLC, the U.S. automaker operated by Fiat SpA, said global automobile sales in May rose 11 percent from a year earlier, trailing the goal Chief Executive Officer Sergio Marchionne set for 2011.
Global deliveries climbed to 160,144 last month, Auburn Hills, Michigan-based Chrysler said in an e-mail. Worldwide sales this year through May rose 17 percent to 714,403, trailing the 32 percent growth rate Marchionne targeted for this year, reported Bloomberg.
A global economy reeling from Japan's record earthquake in March and political turmoil in the Middle East may have slowed Chrysler's growth from its plan at the start of the year, Rebecca Lindland, an analyst with IHS Automotive, said today in an interview.
“Forecasts that were put out at the beginning of the year were really based on an economy that was expected to improve more than it has not only in the U.S. but on a global basis,” said Lindland, who’s based in Lexington, Massachusetts.
Marchionne yesterday named Reid Bigland head of U.S. sales and the Dodge brand. He takes on the new duties in addition to his previous role as head of Chrysler’s Canada operations.
Marchionne is pushing Chrysler to sell 2 million vehicles this year and turn its first annual net profit since emerging from bankruptcy reorganization in 2009.
“I think we’re going to sell 2 million cars this year,” Marchionne told reporters last week while visiting a Chrysler plant in Toledo, Ohio. “That’s what I want to sell.”
While Marchionne said he isn’t sure if the market will strengthen in June, he said industry sales may improve in the following months.
“You can never rule out Marchionne meeting his goals because he manages to pull off magic every day it seems,” Lindland said. “But that’s definitely going to be a challenge. He’s not getting any help from outside influences.”
Sales outside of North America rose 17 percent to 14,566 in May, Ralph Kisiel, a Chrysler spokesman, said in an e-mail yesterday. That’s faster than the 8.7 percent gain in non-North America sales the company posted in April.
Sales in Canada rose 17 percent last month to 24,406 while deliveries in Mexico fell 7.3 percent to 5,809, he said. The company previously reported U.S. sales rose 10 percent to 115,363 in May.
More Industry

First-Half Dealership Deals Up
Buy-sell activity shows that acquirers are looking for value and scale as many retailers seek to leave an increasingly competitive and complex market, Kerrigan Advisors reports.
Read More →
Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →