Chrysler 200 Building Sales Momentum

AUBURN HILLS, MI – It has been 120 days since the launch of the all-new ’15 Chrysler 200 and so far the model has exceeded internal expectations, says Al Gardner, president and CEO of Chrysler.

The key to the 200’s success is conquesting consumers from other brands, which was part of Chrysler’s strategy from the beginning, Gardner tells WardsAuto during a media event here.

“We knew we had to conquest, because frankly we don’t have a customer base,” he says. “We look at the (now-defunct Dodge) Avenger and 200 as the previous cars to this new 200, and this new 200 is so much better. We had to conquest.

“About half of people buying the car today are conquest customers,” Gardner adds.

Customers have been coming over from a number of different brands, including Chrysler’s domestic competitors.

“We’re excited we’re pulling people from Cadillac, Lexus and the German makes, but not in huge numbers,” he says. “A lot of people are moving out of a larger, or more expensive cars, and coming back down to the 200. The reaction we’re getting is, ‘I don’t need to spend all that money, and by the way, your car drives better than what I was just in.’”

Chrysler 200 buyers are purchasing top-end versions of the car at a higher rate than predicted, Gardner says, noting nearly 30% of customers are opting for the top-level C and S trims.

“We’re happy, but I think that’s short-term,” he says. “Whenever we do a launch, we always see a higher premium-level mix. It will settle back down.”

Chrysler 200 sales have been on a roll since inventories reached sufficient levels beginning in August, when deliveries soared 10.5% vs. like-2013 to 10,810 units, according to WardsAuto data. In September, sales jumped 9.9% to 10,995.

Despite the hefty gains, the 200 still has a long way to go to catch top competitors in the midsize sedan segment such as the Honda Accord and Toyota Camry, which in September delivered 32,956 and 28,507 units, respectively.

Gardner expects the 200’s sales momentum will continue, adding the car has an advantage over most other models in the segment.

“The midsize-car segment is a lot of ‘me too’ commodity products,” he says. “They’re very nice commodity products, but they all generally look somewhat similar. There are cars that stand out, like the (Ford) Fusion, and I think the 200 stands out, too.”

Although Gardner does not reveal how much sales must grow to justify the $1 billion in updates at the Sterling Heights, MI, assembly plant in which the 200 is built, he says it’s essential that they keep on an upward trajectory.

Key to maintaining the sales pace is increasing awareness of the 200 outside its strongest markets of the Midwest and Northeast.

“There is a lot more potential and upside, and realistically today we’re not hitting all the markets around the country as hard as we’d like to,” he says. “Our awareness is growing, significantly more than what it was when we launched 120 days ago, but it’s nowhere where I’d like it to be.”

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