Chrysler Makes Push To Clear Inventory
Dealers Balk as Chrysler Strains to Cut Inventory
By NEAL E. BOUDETTEm October 16, 2006; Page A3, The Wall Street Journal
DETROIT -- DaimlerChrysler AG's Chrysler Group is running into resistance from some big dealers to its latest efforts to shrink its bloated inventory of unsold vehicles, a development that could make it harder for Chrysler to bounce back from an expected loss in the third quarter.
Since warning in September that it will report a loss of $1.5 billion for the quarter -- more than twice what it had previously forecast -- Chrysler has temporarily halted production at several plants and stepped up appeals to dealers to take more of the 50,000 or so vehicles the company has in storage because they were built without dealer orders. The dealers' reluctance to take more of Chrysler's new vehicles raises questions about how soon Chrysler will be able to recover from its third-quarter loss.
Chrysler chief Tom LaSorda and the company's top marketing executive, Joe Eberhardt, meet today in Detroit with more than 100 dealers from the Midwest, the first of eight annual regional meetings where they will renew pleas to increase orders. Last week Chrysler added as much as $1,500 in sales incentives for vehicles that have sat on dealer lots for six months or more....read more:
here10/16/2006 08:47:00 AM
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