Chrysler Lowers Prices Adds Options on 12 Vehicles
Chrysler LLC, the U.S. automaker
bought by Cerberus Capital Management LP, lowered prices on 12
vehicles that have more options than the companys base models.
The move was prompted by customer feedback, Auburn Hills,
Michigan-based Chrysler said today in a statement. Among the
options being offered at no cost are fold-into-the-floor seats
on the entry-level Dodge Grand Caravan minivan.
Chrysler, emphasizing responsiveness to consumers as part
of its strategy to end a U.S. sales slide, is making adjustments
to vehicles and offering more features at lower cost. Executives
at the third-largest U.S. automaker say they ordered 260 product
modifications within 60 days of Cerberuss takeover in August.
“A company like Chrysler definitely needs to provide value
in its products, said Rebecca Lindland, an analyst at Global
Insight Inc. in Lexington, Massachusetts. “To provide luxury
touches at competitive prices is a way to do that.
Chryslers pricing approach echoes a practice among
imported brands and involves putting more options into some cars
and trucks without charging extra. That means certain better-
equipped vehicles sell for less than they would have otherwise.
“It is a good idea and gives us a competitive price
advantage over the imports, said Ken Zangara, owner of Zangara
Dodge in Albuquerque, New Mexico. “The imports have had similar
equipment packages for years.
Chryslers vehicle modifications also may save money for
the automaker by simplifying manufacturing, Zangara said in an
interview.
Changes Under Cerberus
The vehicle changes set in motion under the ownership of
Cerberus, a New York-based private-equity firm, are starting to
appear on Chrysler cars and trucks. Cerberus bought an 80.1
percent stake in Chrysler from the former DaimlerChrysler AG.
Alterations include damping the road noise inside the
vehicles and some interior parts, President James Press said in
an interview last month at the North American International Auto
Show in Detroit.
Chief Executive Officer Robert Nardelli said in a speech in
January the company spent $500 million to make the improvements
to vehicles in response to customer and management concerns.
Chryslers U.S. sales slid 3.1 percent last year after a 7
percent drop in 2006.
The automaker unveiled the pricing changes today while
announcing the start of a marketing campaign this weekend to
promote all three of its brands — Chrysler, Dodge and Jeep.
The automaker wants to “build a new image that is strong
and relevant, marketing chief Deborah Wahl Meyer said in the
statement.
