Chrysler US faces new problem: short supply
August 5, 2009 by Matt Brogan
Chrysler US is facing a new problem now after several slow-selling months and a two-month factory shutdown things have turned around with the US government’s cash-for-clunkers rebate achieving a feat that had eluded the manufacturer until now: a lack of cars.
As of the end of July, Chrysler had only seven days’ supply of Jeep Patriots (roughly 2200 units) in dealer stock when sixty days is considered the norm. Many other models are also in short supply as you can see below:
- Jeep Compass: 15 days / 1,597 units.
- Chrysler Sebring: 26 days / 1,764 units
- PT Cruiser: 28 days / 4,412 units
- Dodge Avenger: 15 days / 3,278 units
- Dodge Caliber: 17 days / 5,237 units
It’s a radical change from earlier this year when dealers were drowning in cars, and although it might seem like a good problem to have, a short supply has dealers worried.
But Chrysler spokeswoman Kathy Graham said the company is not concerned about a shortage.
“The plant has been running for a little more than a week,” said Ms Graham. “Things are starting to ship and move. We are building orders. We think it’s manageable.”
On July 22, Chrysler amplified cash for clunkers by matching the government’s offer of up to $4,500 for most of its vehicles, regardless of whether customers had a qualifying clunker. Chrysler tweaked that offer yesterday by lowering the incentive on some of the scarcer vehicles.
Ms Graham said the lower inventories are part of Chrysler’s post-bankruptcy plan.
“We’re going to build from customer orders and dealer orders, not building just for the sake of building,” said Ms Graham.
Australian supply of Chrysler group models (Chrysler, Dodge, Jeep) is steady at the moment.
For more information on Chrysler vehicles, click here.
Print it: 
The car in the picture is so damn ghastly, it must sell for $9000. With the 2 rebates people get them for nothing.
I still wouldn’t take one…..
You sure about that? Its not the fact that this car above is the most fugliest thing coming out as a chrysler…??? hmmmmm
Australia has to get on board with the scrappage scheme. The 50% investment allowance has been a huge success but you need an ABN to benefit. What about the average punter looking for an excuse to buy a new car?
…and the problem is?
I think the shortage is in the skills of their designers. What an ugly ugly lemming of a car!!!!! It looks all confused and ready to fall over and die!!
An I think we should at least consider the clunker scheme. Based on media reports it seems to working where tried overseas
This is a problem that Chrysler hasn’t had in ages. Hell I bet a lot of the recent cars sold sat on the lots for ages. I hope some of the Italians are going to design some of their future products.
Believe it or not, this ugly (and truly ugly I mean) Jeep Compass won the fuel efficiency award as follows in a local magazine real world test:
14 Hyundai Tuscon 2.0 CRD 4×4 AT
13 Audi Q5 TDI Quattro
12 Ssang Yong Actyon 2.0 4×4
11 Land Rover 2 TD4 2.2 AT
10 Kia Sportage 2.0 CRDi 4×4
9 Volvo XC60 AT AWD
8 Renault Koleos 2.0 dCi 4×4
7 Nissan X-Trail 2.0 dCi SE AT
6 Honda CR-V 2.2 CTDi
5 Volkswagen Tiguan 2.0 TDi
4 BMW X3 2.0d Steptronic
3 Nissan Qasqai 2.0 dCi 4×4 (Nissan Dualis for ozzies)
2 Toyota RAV4 D4-D VX
1 Jeep Compass 2.0 CRD1 Ltd