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CHRYSLER LLC: U.S. October 2007 Sales Down by 9 Percent
Chrysler LLC has reported United States sales for October 2007 of 145,316 units; down 9 percent compared to October 2006 with 159,586 units sold. All sales figures are reported as unadjusted. "Growing concerns about the housing slump are showing up in consumers' expectations about future economic conditions as auto sales for the month of October continue below trend levels," said Darryl Jackson, Vice President - U.S. Sales. "Today's company announcement on product changes reflects our customer- driven philosophy and current market conditions." Chrysler brand car sales were led by Sebring Sedan, which posted sales of 5,015 units, up 86 percent versus 2006 and Sebring Convertible which finished the month with sales of 1,856 units, up 837 percent versus October 2006. Chrysler Town & Country sales rose 26 percent to 12,177 units versus October 2006 with 9,668 units. Jeep(R) brand sales were down 21 percent year-over-year, driven by planned fleet reductions. Jeep Wrangler and Wrangler Unlimited posted sales of 9,354 units, up 8 percent versus October 2006. Dodge brand car sales increased 18 percent over last year aided by steady sales of the Dodge Avenger with 6,268 units delivered. "Given the competitive market, our approach is to provide substantial value to our consumers by offering consumer cash and lease cash on the majority of our 2008 models in November," said Michael Keegan, Vice President - Volume Planning and Sales Operations. "We will also introduce 0% APR for 36 months on 2008 models through the end of the month."
About Chrysler LLC
Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/ -- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand.
The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia.
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On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications.
As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC (B/Negative/--), including a 'BB-' rating to the US$5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the US$5 billion "second-out" first-lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default.
Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC.
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