Fiat Chrysler Sales Down 10% in September, Recalls 700,000 SUVs

Year over year, sales dropped 10% at Fiat Chrysler Automobiles N.V. (NYSE: FCAU) in September to 174,266 units. The Jeep brand posted a sales drop of 4% year over year, as the Jeep Patriot showed a year-over-year sales decline of 84% and the Cherokee posted a sales drop of 29%. Grand Cherokee sales rose 20% and Compass sales increased by 75%.

In a separate announcement, FCA said it is voluntarily recalling nearly 650,000 sport utility vehicles (SUVs) sold in the United States to inspect and repair the vehicles’ brakes. The recall was initiated after the company found that repairs to the brake system resulting from a 2014 recall may have been done improperly. Owners will be notified of the recall in early November.

Analysts at Kelley Blue Book (KBB) had projected September sales at 176,000 units, an 8.8% year-over-year decrease. KBB also estimated an average selling price of $37,088 for September, up 2.1% year over year and down 0.4% month over month.

FCA continues to implement a strategy of reducing sales to daily rental car companies. September fleet sales were down 41% year over year.

The company’s Jeep brand sold a total of 73,409 units in September. The Jeep Wrangler sold 15,714 units in the month, while Grand Cherokee sales rose to 22,270 units.

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Ram pickup sales slipped 1% in September to 47,142 units. Last year, Ram sold 47,792 pickups in August.

Year over year, sales of the company’s Chrysler brand dropped 16%, as sales of the Chrysler 200 fell 78% year over year in September to 705. FCA continues to try to sell all dealer inventory on this discontinued model. Sales of the Chrysler 300 fell 23% to 4,207 units. The Pacifica minivan posted September sales of 10,835 (up 18% year over year) and has sold more than 86,000 units since the beginning of the year.

The company’s Dodge brand sales fell 30% year over year in September, as sales of the Dodge Caravan dropped 62% to 3,113 units in the month. The company’s Journey compact SUV saw sales drop by 48% year over year to 6,314 units sold in September.

Retail sales ticked up 0.3% year over year in September and represented 84% of all unit sales. Alfa Romeo sales rose to 1,268 in September, up 2,993% year over year as sales of the new Giulia continue to rise.

Chrysler’s shares traded down about 0.2% Friday morning, at $17.92 in a 52-week range of $6.14 to $18.10. The consensus price target on the stock is $20.53.

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