Chrysler Sales Down, But Not Off The Cliff

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DaimlerChrysler AG (DCX-NYSE/ADR) has reported total group sales of 191,810 passenger vehicles in the U.S. for February 2007, an 8 percent decrease compared to February 2006.  Chrysler Group, consisting of the Chrysler, Jeep and Dodge brands, posted sales of 174,506 vehicles in the U.S., also a decrease of 8 percent.

One note worth mention is that the fuel-efficient models posted gains: 2008 Dodge Avenger (5,205 units sold in February), Dodge Caliber (9,900 units) and the Jeep Compass (4,071 units).  Mercedes-Benz USA (MBUSA) reported sales of 17,304 new vehicles for the month of February.

DCX shares have hardly reacted to this so far, and in a whipping market that might not be that unexpected.  The numbers are reportedly not quite as bad as what was expected, so maybe investors won’t have to fear Chrysler sales dropping off of a cliff while Daimler is out shopping the company.  DCX shares are down 1.2% at $67.25 and have been down all morning.

Jon C. Ogg
March 1, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.