The Dodge Company

DaimlerChrysler AG's Chrysler Group, which has made improving dealer profitability a priority, cut its June sales target. As such, dealers are expected to collect bonuses much easier.

According to a recent letter to retailers from Steven Landry, Chrysler's executive vice president for North American sales, global marketing, service and parts, the Auburn Hills-based automaker slashed its "Volume Purchase Allowance" goals by ten percent this month.

In the letter, Landry urged dealers to sell more Dodge Caliber and Nitro vehicles, among other newer models. "We can sell more Caliber," the letter stated. "It is perfect for the U.S. market. Sebring and Avenger are great vehicles, and we need your help to advertise them locally Compass and Nitro need a push from both of us."

Once dealers hit their targets, they get bonuses for any additional product lines that they sell. This campaign has created friction between several dealers who say it often calls for unrealistic targets. Additionally, there are those who voiced uneven playing field that benefits larger and lucrative dealerships at the same time wounding those that are smaller and less profitable.

Chrysler spokesman, Markus Mainka, said, "We try to ensure that the target-setting process is reasonable, transparent and also reflects how we think the industry will develop. And we constantly continue to review the effectiveness of the program and make potential changes as necessary in consultation with the dealer council."

Since late 2006, Chrysler has been trying to heal its estranged relationship with dealers after the company overestimated the market and crammed overbuilt vehicles onto retailers' lots. In his "mid-year review" letter, Landry pointed out measures taken in the first six months of the year and plans for the remainder of 2007. Landry wrote that one area in which the automaker has made progress is in setting "realistic retail sales targets."

Under Chrysler's new targets for this month, dealers will gain $500 for each vehicle they sell over their goal. For every vehicle they sell over the original target, they will earn $650. The change motivates dealers who may have been discouraged because it appeared they weren't going to hit their targets, said Ron Kutz, the general manager at Dallas Dodge Chrysler Jeep dealership. "It makes it obtainable."

The lowered June goals also give dealers a shot at reaching their quarterly targets and getting those bonuses, Kutz said. "It's not just a reduction for June, but it's a reduction for April and May, which therefore means if I missed April, then wow! I have a chance to catch up on the all the money from April. It's a double win for a dealer."

Doug Wilson of Wilson Dodge in Flowood, Miss., said that the new targets show the automaker is paying attention to "what's going on in the marketplace and with our sales. This shows that their numbers were unrealistic to begin with and out of touch with the current market conditions."

This month, vehicle sales are expected to reach about 16.2 million units on a seasonally adjusted annual rate, said Erich Merkle, an analyst with IRN Inc. in Grand Rapids. That compares to a 16.3 million annual rate last June. "We're seeing some weakness in the market in terms of sales," Merkle said. "It's slight, but it's there."

Like Powerstop, increasing interest rates and gas prices have greatly affected auto purchasers spending habits. However, Chrysler's lower June targets may have more to do with how its vehicles are being received in the marketplace, Merkle said. "They're going to have to tread water for a while until they get their new minivans," he added. "That will be their next big hit."

About the Author:

Mike Bartley, 49, is a professional automotive journalist domiciled in Irvine, CA. He travels from one state to another to cover the hottest auto shows, racing events and automotive revelations. His penned compositions cover press releases, reviews, and suggestions. Where the auto action is, that's exactly where you can find Mike.

Article Source: ArticlesBase.com - Chrysler Cuts June Sales Target

2009 Dodge Nitro Video Review

Kenwood KFC-1682IE 6.5-Inch 240-Watt Max Power Three-Way Speaker System $39.95 A great upgrade for your existing speakers, the KFC-1682ie features Kenwoods exclusive Image enhancer technology and rugged polypropylene mica cone woofer with fiber texture for strength and superior sound quality. Urethane Surround ensures crisp mid-bass, and the balanced dome tweeter delivers spine-tingling, distortion-free highs. Frequency Response: 35kHz - 22kHz Max Input Power: 240 Watts Rate...

Delphi Sa 10034 Skyfi Cd Audio System $130.00 Offering surprisingly good sound for its diminutive size, the SA10034 portable audio system from Delphi is a terrific way to enjoy your XM satellite radio subscription and MP3 CDs at home or on the go. The system, just 20 inches across, is easy to carry, easy to position, and hard to turn off, thanks to its impressive abilities and engaging performance. The boombox is designed for use with Delphi...

Sony CDX-GT330 MP3/WMA-Compliant CD Receiver $99.95 ...

1969 Dodge Charger Body, Clear: S25, TMX, SAVX $24.90 1969 Dodge Charger Body, Clear: S25, TMX, SAVX...

---

WeatherTech Truck Floor Liner for 2002-2010 DODGE NITRO $100.99 WeatherTech Truck Floor Liner for 2002-2010 DODGE NITRO

Auto Ventshade 94307 Dodge Nitro 4-Piece VentVisor (2007-2010) $55.95 The Original VentVisor is precision engineered for an exacting fit and proven protection in rain or heat for your Dodge Nitro. It's unique design allows fresh air to naturally circulate through open windows while still keeping passengers and interiors dry in the rain and parked vehicles cooler in extreme heat. Exceptional style and protection for your   Dodge Nitro, as well as, superior comfort for every passenger.    Features: Keeps The Rain Out Lets Fresh Air In Original Ventvisor Design Reduces Heat Build-Up In Cab Windows Can Be Left Partially Open Install w/3M Adhesive Foam Tape No Drill Installation Limited Lifetime Warranty NOTE: Ventvisors are sometimes referred to as side window rain guards or side window deflectors.     Application: 2007-2010 Dodge Nitro   The vehicle(s) that this product fits is subject to change and may fit additional makes, models, or years. Not sure if this will fit? Use the vehicle look-up below:

Auto Ventshade 194307 Dodge Nitro 4-Piece In-Channel VentVisor (2007-2010) $55.95 The Original VentVisor is precision engineered for an exacting fit and proven protection in rain or heat for your Dodge Nitro. Its unique design allows fresh air to naturally circulate through open windows while still keeping passengers and interiors dry in the rain and parked vehicles cooler in extreme heat. Exceptional style and protection for your Dodge Nitro, as well as, superior comfort for every passenger.     Features: Sleek streamlined appearance No exterior tape touches your vehicle Greater visibility No leg to obstruct the side view mirror Decreased wind noise Snug secure fit No drill installation Install w/strong automotive grade tape Limited lifetime warranty   NOTE: Ventvisors are sometimes referred to as side window rain guards or side window deflectors.     Application: 2007-2010 Dodge Nitro   The vehicle(s) that this product fits is subject to change and may fit additional makes, models, or years. Not sure if this will fit? Use the vehicle look-up below:

Jeep Liberty & Dodge Nitro Chrome Door Handle Cover Kit (2007-2010) $66.95 Give your truck/SUV a great new custom chrome look in just a few minutes! Made from chrome plated ABS plastic, these door handle covers are designed to resist flaking and oxidation. Easy no drill installation! They install in seconds using pre-applied double-sided tape. 4 covers included     Applications: 2008-2009 Jeep Liberty KK 2007-2010 Dodge Nitro

Belltech Nitro Drop 2 Shocks $41.2 Belltech Performance Shocks in stock now! Read Belltech Nitro Drop 2 Shocks customer reviews. AutoAccessoriesGarage.com has the best selection of Belltech Suspension at the lowest prices around. Belltech Nitro Drop 2 Shocks are chosen by auto enthusiasts everywhere to personalize their vehicles. Belltech Nitro Drop 2 Shocks available now at AutoAccessoriesGarage.

Belltech Struts and Shocks - Nitro-Active Shocks Rear (Lowered: 0-3 inch) [97-04 Dodge Dakota] $63.32 Belltech Struts and Shocks - Nitro-Active Shocks Rear (Lowered: 0-3 inch)

Belltech Struts and Shocks - Nitro-Drop Shocks Front (Lowered: 3 inch) [97-04 Dodge Dakota] $52.81 Belltech Struts and Shocks - Nitro-Drop Shocks Front (Lowered: 3 inch)

---