Wednesday July 1, 06:43 PM
Chrysler US sales fall 42 percent in June
CHICAGO (AFP) - Chrysler (Xetra: 710000 - news) posted a 42 percent sales drop in its first month since emerging from bankruptcy protection, but the automaker said Wednesday it had managed to increase its share of the US retail market.
"We are proud our new company starts out its first month with increasing market share and continued strong retail sales," said Peter Fong, who heads Chrysler's sales organization.
"It's a testament to our strong dealer network and loyal customers who supported Chrysler during the formation of the new company," Fong said.
"We will continue to grow our new company by building on our brand heritage and offering consumers high-quality, fuel-efficient Chrysler, Dodge and Jeep vehicles."
Chrysler's sales were particularly hard-hit by a decision to shutter its plants during the bankruptcy process. That meant it could not produce vehicles for lower-margin fleet sales, which were down 95 percent.
Production resumed at eight North American plants on Monday but the automaker still has about a 71 day-supply of vehicles. Inventory is nonetheless down 56 percent from June of 2008 at 195,272 units.
All Chrysler plants will close for a two-week summer break beginning July 13.
Retail sales were down 16 percent to 66,324 vehicles in June while total sales were down 42 percent at 68,297 units.
Sales for the first six months of the year were down 46 percent at 471,197 vehicles.
Chrysler forecast that its retail share would be 9.0 percent, which it said is more than a one percentage point improvement compared with June 2008.
Chrysler gained approval from a bankruptcy court to sell its assets to a new company run by Italy's Fiat (Milan: F.MI - news) on June 1. The transaction closed on June 10.
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