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Ford, Chrysler Low on Small Cars
Saturday, August 08, 2009 11:04 AM


(Source: Detroit Free Press)trackingBy Greg Gardner, Detroit Free Press

Aug. 8--Chrysler Group LLC and Ford Motor Co. are running low on their hottest-selling models under the cash for clunkers program, even as President Barack Obama signed authorization Friday of an additional $2 billion to extend the program.

Some Chrysler dealers are out of the Dodge Caliber, Dodge Avenger, Jeep Compass and Jeep Patriot.

"We sold out a week ago," said Steve Demers, general manager of Cueter Chrysler Jeep Dodge in Ypsilanti. "While I am happy that the additional money was approved, I, along with others, will not be able to take advantage of the demand."

Chrysler's Belvidere, Ill., assembly plant, which makes the Caliber, Compass and Patriot, is trying to catch up.

"It may take some dealers a couple of weeks to get more small cars," Chrysler spokeswoman Kathy Graham said.

Ford's stock of the Focus and Escape, its two hottest-selling clunker replacements, is low, according to WardsAuto.com, which tracks inventory.

The lack of popular Fords and Chryslers could drive buyers to foreign-brand cars that are selling well under the program. Even with more money available, the popular program is expected to end this month.

Cash-for-clunkers effort cuts into their supplies

Automakers, dealers and consumers are thrilled that a normally gridlocked Congress agreed in one week to pump another $2 billion into cash for clunkers, but Chrysler and Ford are struggling to keep up with the small-car boomlet.

According to WardsAuto.com, July 31 inventories for the Jeep Patriot were enough to last only one week.

Dealers reported they held about two weeks' supply of Jeep Compass, Dodge Avenger and Dodge Caliber, among Chrysler's most fuel-efficient offerings.

Normally, automakers try to maintain inventories to last between 40 and 60 days.

"It's frustrating. We had a great start but once the products were gone, some of the excitement went out of it," said Demers. "Right now I have two vehicles on my lot that qualify under the program."

Overtime is being added at Chrysler's Belvidere, Ill., assembly plant -- the source for Caliber, Compass and Patriot -- said spokesman Max Gates.

Production just resumed Monday at the Sterling Heights assembly plant where workers build Dodge Avenger and Chrysler Sebring.

Further complicating the issue is the transition from ending output of 2009 models and launching their 2010 successors.

Inventories of Ford Focus and Escape, the second- and seventh-best sellers among clunkers customers, had dropped to 25 and 21 days, respectively, at the end of July.

Despite the squeeze, Ford plans no significant production boost before the end of August, said sales analyst George Pipas.

General Motors, Honda, Toyota and Nissan are keeping up with their small-car demand, according to WardsAuto.com. Toyota's Lexus division had a slim 24 days' supply of its RX crossover model.

GM was short on only two models, Chevrolet Camaro and Equinox, both of which are all new or redesigned.

As of a week ago, Chevrolet dealers had more than two months' worth of Cobalts, GM's most popular clunker replacement.

Chrysler dealers are taking some comfort from the company's separate incentive program, which offers rebates of $3,500 or $4,500 on many models.

Buyers need not trade in a clunker.

"We're out of the smallest models," said Chuck Eddy, who sells Chryslers, Jeeps and Dodges in Austintown, Ohio. "There's so much pent-up demand out there. By September I won't have anything left."

Contact GREG GARDNER: 313-222-8762 or ggardner@freepress.com

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