Re: [DMCForum] JZD and the PT...
[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: [DMCForum] JZD and the PT...



[--Begin Quote--]

Chrysler had no idea that the PT Cruiser would be such a hit when it 
went on sale in the spring of 2000.

Or that its buzz would evaporate three years later.

Sales of the PT Cruiser, once the most sought-after car on the market, 
dropped 25 percent this year, despite a new turbocharged version that 
has been praised by reviewers. Three years ago, buyers were willing to 
pay as much as $10,000 over the PT's sticker price, but Chrysler is now 
offering interest-free loans and $2,000 rebates, so that a bare-bones 
version costs only $16,000. There are even special deals for employees, 
who initially did not receive company discounts on the PT because it was 
so red-hot.

What happened? Industry analysts say the fate of the PT Cruiser mirrors 
that of other halo cars - the industry term for unique vehicles that are 
meant to cast a favorable light on a company's lineup, drawing customers 
into showrooms.

The PT's experience echoes that of Volkswagen's New Beetle, which 
arrived on the market two years earlier, in 1998, to even more acclaim. 
Interest in the car fell after VW failed to offer new versions to keep 
the excitement going.

More recently, the new version of the Ford Thunderbird, which Ford Motor 
hoped would get the kind of buzz that greeted the Beetle and the PT, 
fizzled almost upon its introduction in August 2001, because of 
production delays and problems with quality.

These days, with so many new cars, trucks, minivans and sport utility 
vehicles arriving in showrooms, companies cannot expect to get much 
mileage out of halo cars, said Karl Brauer, editor in chief of 
Edmunds.com, a Web site based in Santa Monica, Calif., that offers 
car-buying advice.

"Once you slip out of the limelight, it's hard to get back there," Mr. 
Brauer said.

But back in 2000, the limelight shone on the PT Cruiser like George 
Hamilton's sunlamp. The retro-looking PT, with its sloping hood, zippy 
handling and roomy interior, seemed the latest hit for Chrysler, which 
had had a series of hot-selling cars in the 1990's, including the Dodge 
Viper and the Plymouth Prowler.

Chrysler dealers instantly sold out of the PT, which had the features of 
a minivan and the chassis of a compact car and brought to mind a Ford 
hot rod of the 1930's. At some dealerships, waiting lists were as long 
as a year. Car shoppers traveled across the country to find PT's, many 
paying thousands above the $17,000 starting price.

Those days are long gone. Dealers had a 136-day supply of PT's at the 
end of November, more than double the number of cars they prefer to have 
on hand at this time of year, according to the Autodata Corporation, 
which compiles industry statistics.

Still, the car has been Chrysler's last big success. No other Chrysler 
vehicle since the PT has generated the same kind of hubbub. "The PT 
Cruiser was really something; it came out of nowhere," said Mr. Brauer, 
whose Web site called the PT the most significant vehicle of 2001.

The PT's introduction is now seen as a dividing line between the 
fast-moving, American-led Chrysler of old and the less flashy style of 
the German-controlled DaimlerChrysler, which has since encountered 
financial difficulties that have forced two rounds of deep cost-cutting.

The ink was barely dry on the merger papers that created DaimlerChrysler 
when the PT was unveiled at the 1999 Detroit auto show. Based on the 
same chassis as the Dodge Neon compact, the PT was the subject of 
intense debate in the company. The idea for a small van with distinctive 
styling had been kicking around through the 1990's, but some executives 
questioned whether there would be a market for it.

Because there was little else like the PT on the market, Chrysler came 
up with the slogan "Too cool to categorize." It said the car would be 
aimed at younger buyers, one reason for the moderate price. But most 
often, the PT ended up being bought by middle-aged customers, including 
Colin L. Powell, the secretary of state, who added one to his stable of 
classic Volvos.

While the PT's roominess and versatility were selling points, many 
people bought it for its distinctive look. The design was part of the 
industry's flirtation with retro-looking vehicles like the Beetle and 
the Plymouth Prowler, an aluminum hot rod that has since vanished from 
Chrysler's lineup (along with the Plymouth brand).

  But by now, buyers have grown accustomed to the PT, and its retro 
looks alone are no longer enough to generate higher sales, said Art 
Spinella, an industry analyst at CNW Market Research in Bandon, Ore. 
"Anyone who just couldn't live without one has one," he said. Through 
November this year, the company sold fewer than 97,000 PT's, compared 
with 130,000 for the comparable period of 2002.

But Chrysler isn't giving up. This year, it added the turbo version, 
which has a 2.4-liter, 215-horsepower engine and starts at $25,000. 
Coming in 2004 is a convertible version, which Chrysler first displayed 
at the 2001 New York auto show as a concept car. The convertible comes 
with two doors, making it a possible precursor to a PT coupe, which 
analysts expect Chrysler to introduce eventually.

Gary Dilts, Chrysler's vice president for sales, said the company was 
satisfied with the PT's performance. Chrysler regards it as a niche 
model, he said, not as a volume seller. He acknowledged that demand had 
dropped since the original flurry of attention, but he added, "We have a 
lot of people buying the PT Cruiser, because it is a great little 
package at a great price."

But analysts say the company faces the task of trying to regenerate 
interest in a vehicle that now seems passé.

The PT's appearance has become familiar now that hundreds of thousands 
are on the road, Mr. Spinella said. "The market is saturated with PT 
Cruisers and it's not as novel as it once was," he said. Other cars, 
like the Toyota Matrix and its counterpart, the Pontiac Vibe, as well as 
the boxy Honda Element, offer as much or more room and versatility as 
the PT, and at similar prices.

CAN interest in the PT be revived? Mr. Brauer points to VW's experience 
with the New Beetle. After sliding for several years, its sales are up 
slightly this year, thanks to the long-awaited introduction in late 2002 
of a Beetle ragtop.

VW is also offering incentives to bolster Beetle sales, including a $500 
rebate to previous VW owners, and $1,000 to dealers who arrange auto 
loans or leases through VW's financing arm.

The PT and the New Beetle offer cautionary tales for another halo car, 
the Mini Cooper, which has remained popular since it went on sale in 
March 2002. The German automaker BMW, which owns the Mini nameplate, is 
deliberately limiting sales in the United States to 25,000 a year, so as 
not to dampen demand.

The general manager of Mini USA, Jack Pitney, vowed in an interview that 
the company would avoid what happened to its competitors by introducing 
a steady stream of new versions. Next is a Mini convertible, due this 
spring, just two years after the original Mini went on sale - a much 
faster evolution than that of the Beetle and the PT.

Creating new versions is precisely what companies need to do with halo 
cars to keep generating interest, Mr. Brauer said. "The perfect company 
is the company that pulls you in, grabs you and holds you and doesn't 
let you go," he said.

[--End Quote--]

Merry Christmas :P

Farrar

Louie Golden wrote:
> Could you copy and paste the text? I'm not a member... and yes I know
I've been told by many people how easy and fast it is to sign up, but I'm
weird and refuse to do that lol. 



Yahoo! Groups Sponsor	 

ADVERTISEMENT
 
<http://rd.yahoo.com/SIG=12cthg265/M=267637.4116732.5333197.1261774/D=egro
upweb/S=1705126215:HM/EXP=1071615548/A=1853618/R=0/*http://www.netflix.com
/Default?mqso=60178338&partid=4116732> click here	
 
<http://us.adserver.yahoo.com/l?M=267637.4116732.5333197.1261774/D=egroupm
ail/S=:HM/A=1853618/rand=540082040> 	

To unsubscribe from this group, send an email to:
DMCForum-unsubscribe@xxxxxxxxxxxxxxx



Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service
<http://docs.yahoo.com/info/terms/> . 

<<attachment: winmail.dat>>



Home Back to the Home of PROJECT VIXEN 


Copyright ProjectVixen.com. All rights reserved.

Opinions expressed in posts reflect the views of their respective authors.
DMCForum Mailing List Archive  DMCNews Mailing List Archive  DMC-UK Mailing List Archive

This site contains affiliate links for which we may be compensated