Chrysler Pinning Hopes on Minivan Sales Surge
February 27th, 2009 | by admin |
Matthew C. Keegan asked:
Twenty-five years ago Chrysler introduced a family of iconic vehicles, minivans, that quickly boosted the struggling automaker (pictured below with the current generation model). Just a few years removed from a federal government bail out, Chrysler needed something that would help the automaker stand out — its segment inventing minivans proved to be the answer.
For the first several years, Chrysler had no competition in the segment as Ford and GM had nothing to counter the Dodge Caravan, Plymouth Voyager, and the Chrysler Town & Country. It would be several more years before Toyota, Honda, and Nissan got into the game as well, a head start that has kept the Chrysler minivans at the top of the sales heap ever since.
Grand Caravan Sales Down Sharply
Sales since the fifth-generation minivans were launched six months ago are down 12%, not surprising given the overall drop in the economy. The Dodge Grand Caravan version has experienced the largest decline, nearly 20%, while the Town & Country has slipped just 1.7%. The newest generation minivans are the first where the shortened wheelbase model isn’t available, a strong seller for the Dodge brand.
But, it is the Spring months when Chrysler and Dodge dealers usually sell the most minivans, a full 40% of their annual sales, as families prepare to take their summer vacations. Unknown for this year are two things: how high gas prices and a struggling economy will impact sales. Many consumers are delaying their purchases until gas prices stabilize and the economy improves.
Good Reviews May Help
Although the Chrysler minivans have trailed Honda and Toyota in quality, but not in sales, the reviews for the current iteration have been good. The vehicles are well equipped and they come with features not available by Honda and Toyota including stow ‘n go seating. It also helps that Ford and General Motors have since exited the segment which has been declining. Crossovers are gaining in strength, a new segment which may eventually put more pressure on Chrysler and its competitors.
Shane
Twenty-five years ago Chrysler introduced a family of iconic vehicles, minivans, that quickly boosted the struggling automaker (pictured below with the current generation model). Just a few years removed from a federal government bail out, Chrysler needed something that would help the automaker stand out — its segment inventing minivans proved to be the answer.
For the first several years, Chrysler had no competition in the segment as Ford and GM had nothing to counter the Dodge Caravan, Plymouth Voyager, and the Chrysler Town & Country. It would be several more years before Toyota, Honda, and Nissan got into the game as well, a head start that has kept the Chrysler minivans at the top of the sales heap ever since.
Grand Caravan Sales Down Sharply
Sales since the fifth-generation minivans were launched six months ago are down 12%, not surprising given the overall drop in the economy. The Dodge Grand Caravan version has experienced the largest decline, nearly 20%, while the Town & Country has slipped just 1.7%. The newest generation minivans are the first where the shortened wheelbase model isn’t available, a strong seller for the Dodge brand.
But, it is the Spring months when Chrysler and Dodge dealers usually sell the most minivans, a full 40% of their annual sales, as families prepare to take their summer vacations. Unknown for this year are two things: how high gas prices and a struggling economy will impact sales. Many consumers are delaying their purchases until gas prices stabilize and the economy improves.
Good Reviews May Help
Although the Chrysler minivans have trailed Honda and Toyota in quality, but not in sales, the reviews for the current iteration have been good. The vehicles are well equipped and they come with features not available by Honda and Toyota including stow ‘n go seating. It also helps that Ford and General Motors have since exited the segment which has been declining. Crossovers are gaining in strength, a new segment which may eventually put more pressure on Chrysler and its competitors.
Shane
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