The combination of an Italian manufacturer and a troubled American one should have taken the name Jeep/Ram rather than the one management chose. Half of Fiat Chrysler sales in the United States through the first four months of the year were Jeeps, 250,508 of the 506,710 total. The company’s Ram pickup represented, at sales of 139,432, 27% of Fiat Chrysler sales.
Ironically, Fiat Chrysler has trouble selling both Chryslers and Fiats in the United States. Fiat sales through the first four months of 2015 were down 6% to 14,794. Fiat continues to have a very small presence in America. Chrysler brand sales rose 16% in the January to April period, 109,637. However, the brand was not a success across the board. The new 200 sold almost twice as many units in the first four months compared to the same period as last year, rising to 68,022. Sales of the brand’s flagship 300 fell 6% to 16,708.
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Fiat Chrysler decided to maintain Dodge as an independent brand. It may not have been a wise decision. Dodge sales fell 15% in the first four months of the year to 168,471. The brand would be in a disastrous position if Challenger sales were not higher by 41% to 22,728.
The reason for Fiat Chrysler’s success in 2015 is the same as it was last year. Without Jeep, the manufacturer would not be much of a company. As it announced last year’s results, management wrote:
Jeep brand sales were up 19 percent, the brand’s best sales performance ever in the month of December and its 15th-consecutive month of year-over-year sales gains. The Jeep brand has set a sales record in each month this year, including its all-time sales record in May. All five Jeep brand vehicles posted year-over-year sales increases in December. The Patriot logged its best sales month ever, while the Cherokee and Wrangler each recorded their best ever sales in the month of December. Sales of the flagship Jeep Grand Cherokee were up 4 percent, its best December sales in three years. The Compass logged its best December sales since 2006.
All Fiat Chrysler needs to do to keep its share price ahead of those of its rivals is to continue to sell more Jeeps.
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