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Chrysler Group Sales Results

Chrysler Group 2006 Sales

Chrysler Group 2005 Sales

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2006: Worldwide, the Chrysler Group shipped 2.7 million Chrysler, Jeep® and Dodge branded passenger cars, sports tourers, minivans, SUVs and light trucks to its dealerships in 2006 (2005: 2.8 million). Worldwide retail sales decreased by 5 percent in 2006 to 2.7 million units.

As a result of lower volumes and a weaker U.S. dollar on average for the year, the Chrysler Group’s revenues for the year of $62.2 billion were significantly lower than in 2005 ($66.1 billion).

Chrysler's Glorious History: Chrysler Six

The Chrysler Group posted an operating loss of $1,475 million in 2006, compared with an operating profit of $2,024 million in 2005.

The deterioration in operating results was primarily the result of negative net pricing, unfavorable product and sales market mix, and a decline in factory unit sales in the United States. These factors reflect the continuing difficult market environment in the United States during 2006 marked by an overall decline in market volume, a shift in consumer demand towards smaller, more fuel-efficient vehicles due to higher fuel prices, as well as the impact of higher interest rates. These negative factors were partially offset by the market success of the new models, most of which were launched in the second half of the year. Several of these vehicles target this shift in consumer demand, resulting in a positive contribution to earnings in the fourth quarter of the year.


In addition, the financial support provided to supplier Collins & Aikman led to a charge of $87 million in 2006, compared to $131 million in 2005. The Chrysler Group’s prior-year operating profit was positively impacted by a $317 million gain on the sale of the Arizona Proving Grounds vehicle testing facility. Further special items that affected earnings in 2005 are shown in the table at the end of this release.

The Chrysler Group launched a total of 10 attractive new models in 2006, and significantly expanded its sales outside the NAFTA region (+22 percent to 214,400 vehicles). Dodge launched its compact five-door car – the Dodge Caliber, as well as its first mid-size SUV – the Dodge Nitro, and the new Dodge Ram 3500 Chassis Cab.

The new positioning of the Jeep brand portfolio continued with the launch of the compact Jeep Compass. Other new models launched were the Jeep Grand Cherokee SRT8, the new Jeep Wrangler, the four-door Jeep Wrangler Unlimited and the Jeep Patriot. The Chrysler brand launched the Aspen, its first full-size SUV, while the new Chrysler Sebring is intended to strengthen the Chrysler Group’s competitive position in the mid-size sedan category.

The Chrysler Group also made more progress in the field of vehicle quality in 2006. Internal measurements show that the quality of the division’s vehicles is better than ever before, a fact which is confirmed by external quality studies: The Chrysler brand ranked in the top ten in the 2006 J.D. Power Initial Quality Study.

All three Chrysler Group brands also made gains in the 2006 J.D. Power Vehicle Dependability Study, showing that customer perception of quality continues to improve as new vehicles replace older models in the product range.

The new manufacturing flexibility strategies have helped to improve the Chrysler Group’s efficiency, allowing the division to better utilize its assets, such as the Belvidere (Illinois) Assembly Plant, where the Dodge Caliber is built with the use of highly flexible robots and free of vehicle-specific heavy tooling. Over the four years of 2002 through 2005, the Chrysler Group posted a cumulative 24 percent productivity improvement, with a 6 percent improvement in 2005, as confirmed by the 2006 Harbour Report, a recognized industry study that measures the productivity of North American automotive manufacturers.

One year after the start of production by the Global Engine Manufacturing Alliance (GEMA), the second World Engine plant opened in Dundee (Michigan) in October 2006. The two plants in Dundee are part of a five-factory global venture developed by DaimlerChrysler, Hyundai Motor and Mitsubishi Motors.




2005: Worldwide, the Chrysler Group posted factory unit sales (shipments to dealers) of 2.8 million Chrysler, Jeep® and Dodge brand passenger cars, sports tourers, minivans, sport-utility vehicles and light trucks in 2005, an increase of 1% compared to the prior year. Worldwide retail and fleet sales increased by 5% to 2.8 million vehicles.

Due to higher unit sales, the Chrysler Group’s revenues of €50.1 billion were 1% above the prior-year level.

Although market conditions remained difficult in North America, the Chrysler Group posted an operating profit of €1.5 billion in 2005, compared with an operating profit of €1.4 billion in the prior year. The increase in operating profit reflects an increase in worldwide factory unit sales and a €240 million gain realized on the sale of its Arizona Proving Grounds vehicle testing facility. These items were offset by negative net pricing and charges of €99 million related to financial support provided to one supplier.

In addition to improving efficiency and product quality, another strategic goal of the Chrysler Group is to achieve a sustained improvement in its competitive position as a result of new model launches. Therefore, the Chrysler Group continued its product offensive in 2005 with award-winning products such as the Dodge Charger, the Jeep® Commander and the new Dodge Ram Mega Cab pickup truck.

Mid-term, the Chrysler Group plans to further develop its presence in international markets. The Dodge brand will be launched in markets outside North America in 2006, while the product range for international markets was already expanded in 2005.

By the year 2007, the Chrysler Group aims to close the gap with the best competitors in the North American market in terms of vehicle quality and productivity. In 2005, additional measures were taken to achieve further productivity improvements and to optimize manufacturing processes. The results of the measures that have been implemented in recent years can be seen in the Harbour Report North America 2005 – a highly respected report measuring the productivity of automobile manufacturers in North America. Harbour’s latest study shows that the Chrysler Group once again reduced its overall hours per vehicle, by 4.2 (2003: 7.8) %, in 2004, and an improvement of 5-6% is expected in the 2005 report in June.

The Chrysler Group will launch 10 all-new products in 2006 – more than in any other year in its history – including the Chrysler Aspen, Jeep® Wrangler, Jeep® Compass, Dodge Caliber and Dodge Nitro.

2003: Chrysler Group finished 2003 with 2,127,451 units sold in the U.S., a decrease of four percent from 2002 when 2,205,446 units were sold.

2001: The Chrysler Group shipped just under 2.74 (2000: 3.05 ) million vehicles of the Chrysler, Dodge and Jeep brands to dealers worldwide. Accordingly, Revenues at the Chrysler Group are anticipated to decline to about € 62 billion.

2000: In 2000 Chrysler Group vehicles were exposed to intense competition and increasing incentive costs in the U.S. market during 2000. Moreover, segment leading Chrysler and Dodge brand minivans were replaced by all-new 2001 models, resulting in production declines due to model changeover and high incentives to clear inventories of the previous models. The Chrysler, Dodge and Jeep® and brands generated revenues of nearly Euro 68 billion last year. The increase of about 6 percent is largely attributable to the strength of the dollar against the euro. Vehicle sales declined to about 3 million units.

Source: DaimlerChrysler

DaimlerChrysler 2001 Concepts

Chrysler Crossfire

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Jeep Willys

Chrysler Crossfire

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