As Chrysler Sales Falter, It Launches New 300

Through the first 10 months of the year, Chrysler Group sales have risen 15% to 1,726,539. Chrysler brand sales have dropped 4% to 250,612, while the overall U.S. industry has grown by 5% to 7%, depending on the measure. Chrysler 300 sales are off by 9% to 44,519 for the January to October period. The 300 is the closest thing the Chrysler brand has to a flagship.

Chrysler’s global parent, Fiat Chrysler Automobiles N.V. (NYSE: FCAU), unveiled the new 300 at the L.A. Auto Show. The car will come in several versions that, as most car companies do with their most important models, will range widely in price and features. The base 300 will have a retail price of $31,395. At the top of the model line, the 300 C Platinum edition will cost $42,395.

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Most new car launches involve a certain amount of hyperbole on the part of the manufacturer. The 300 is no exception:

With roots that include the breakthrough 1955 and 2005 models, the new 2015 Chrysler 300 takes the nameplate’s style and sophistication to new levels and highlights six decades of ambitious American ingenuity through iconic design proportions and inspired materials, world-class quality and craftsmanship, best-in-class 31 miles per gallon (mpg) highway fuel economy, plus class-exclusive innovations — including a state-of-the-art TorqueFlite eight-speed transmission now standard on every model, the segment’s most advanced all-wheel drive (AWD) system, award-winning Uconnect Access services, all-new and segment-exclusive 7-inch full color driver information display (DID) and the newest generation Uconnect systems — putting boulevards and interstates on notice once again.

The challenge the 300 faces is the swarm of successful models in the American market that compete with it. As experts at research firm Edmunds.com point out:

The large sedan segment is in the midst of a renaissance, highlighted by recently redesigned or updated versions of the Buick LaCrosse, Chevrolet Impala, Hyundai Azera and Toyota Avalon, as well as the Azera’s corporate cousin, the all-new Kia Cadenza. These sedans offer more usable legroom for three rear passengers, because of their front-wheel-drive architecture and subsequent lack of a transmission tunnel hump in the middle of the floor. Fuel economy on these cars also tends to be a bit better, especially with the hybrid versions of the Impala, LaCrosse and Avalon.

Some of the competition comes from two of the three largest car companies in the world, General Motors Co. (NYSE: GM) and Toyota Motor Corp. (NYSE: TM).

If the 300 were being released into a market vacuum, Chrysler management would have reason for a high level of optimism, but that is not the case.

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