Tuesday, February 06, 2007

Chrysler's Challenges

Business Week notes several challenges faced by Chrysler. Here is one:

Chrysler is in the difficult position of having the highest sales incentives in the industry, according to J.D. Power and Associates (like BusinessWeek.com, part of The McGraw-Hill Companies (
MHP)), as well as the slowest vehicle turnover on dealer lots. Incentives have averaged around $3,500 per vehicle, while Ford (F) and General Motors (GM) have been averaging below $3,000. And it has been taking the company about four months on average to move its cars off dealer lots, the worst among major automakers. Among Chrysler's goals is cutting costs by $1,000 per vehicle.

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