Chrysler Strike: What it Means to Consumers

It feels like déjà vu here. Just weeks after the United Auto Workers walked out of GM assembly plants, the whole exercise is replaying itself with Chrysler. At 11 this morning, union workers walked out on the assembly plants. We’re not sure how close the two sides are to agreeing to terms on health care and job security, and Chrysler certainly isn’t in as strong a position as GM was to offer concessions. All we do know is that Chrysler has a lot of slow-sellers these days, which means a lot of inventory they can sell while plants are empty.

As of Sept. 1 — the last data collected by Automotive News — the Chrysler Group’s average inventory was 72 days — higher than Ford or GM, which were at 68 and 67 days, respectively. That means Chrysler won’t run out of cars for more than two months. Some vehicles, like the Jeep Compass and Patriot — which is selling well — have even more — 106 and 90 days, respectively. Probably the most popular model in the Chrysler lineup is the Jeep Wrangler, which has 46 days of inventory available. Unfortunately, new vehicles like the redesigned Dodge Grand Caravan and Chrysler Town & Country minivan aren’t easy to track and may be hard to find on dealer lots.

Current incentives will still be honored on all vehicles, and we don’t foresee any immediate impact on the buying process on most models. The GM strike lasted all of two days, and this one could be a similar time frame, though there are enough variables in play that it could stretch out much longer. We’ll wait and see what happens.

Comments

I wonder if this will help improve the quality even more.

Breaking news: UAW and Chrysler reached a deal, strike is over.

When will be Ford's turn?