Chrysler dealers ask for ad changes after 25% sales drop
Chrysler dealers have asked the company to pull new television ads and restore regional marketing budgets after U.S. sales declined 25 percent in November, Bloomberg.com just reported. The advertisements, which began in September, focus on lifestyles, and vehicles are shown only briefly. What the dealers prefer are Jeep, Chrysler and Dodge ads that show the vehicles more, highlighting their features, and bargain prices, to remain competitive. AIM Group recently reported on advertising and incentive changes at Chrysler.
Frustrated that narrower incentives and plunging sales are hurting their profits, Chrysler dealers are being quite vocal about the marketing strategies of Chrysler CEO Sergio Marchionne. According to Bloomberg.com sources, sales dropped because of a September change in regional ad budgets, previously timed to match local vehicles shipments. The lack of production during Chrysler LLC’s bankruptcy disrupted the retailers’ cash flow and advertising budgets.
“Without the changes, some markets would have had no money to spend on advertising in the fourth quarter,” said Jodi Tinson, a Chrysler spokesperson. “The system is being evaluated, and it is too early to say if it might change again.” She declined to comment on the dealer frustration with the ads.
Chrysler also has been reducing incentive spending. Average incentives for Chrysler fell 6.8 percent, or $262 per vehicle, in November compared with a year earlier, according to Autodata Corp.
Chrysler’s U.S. sales declined 25 percent in November to 63,560 while the overall industry was unchanged from the previous year. The company’s market share declined to 8.5 percent from 11.4 percent a year earlier. The company plans to radically alter three fourths of its vehicle lineup for 2010, and introduce new models, to gain share and restore sale.
Comments are closed.
Search...
Latin America report …
Digital classifieds are growing in Latin America -- a mixed landscape of traditional media companies and intercontinental giants that are finding new opportunities.
The 64-page report, for sale here, is a compilation of analyses our clients have already received as recipients of Classified Intelligence Report.
(Clients can receive a copy for free -- just drop us a line.)
Gentle reminder…
Clients' passwords change with every PDF issue of Classified Intelligence Report -- basically, once every other Thursday. Look in your latest edition for the newest password.
Not a client yet? Drop us a line about becoming one.
Categories
Archives …
- New Study Names Edmunds.com Most Popular Car Dealer Review Site
- HomeZada Integrates to Pinterest for DIY Projects
- Contact At Once! Dealer Chat Software Now Available to DealerRater Certified Dealer Partners
- United States:
- Vizu Moves into Social Media Ad Success Measurement
- McClatchy Names Elaine Lintecum As Vice President, Finance And Chief Financial Officer And Announces Other Leadership Changes
- United States:AutoTrader.com Announces New Leadership at VinSolutions
- Grenlist.com is a “Classifieds Community”, with environmental integrity! Every aspect of the site, has been created by the people, for the people!
- Canoe.ca publisher Quebecor reports Q1 2012 results
- Yellow Media Reports $3 Billion Quarterly Loss
