AUTO MARKETING: Chrysler revives its retail sales

The Chrysler Group is holding a sweepstakes until Labor Day in which it will give away nine vehicles -- three 2007 Wrangler Unlimiteds, three 2007 Chrysler Sebrings and three 2008 Dodge Challengers, above. To enter the contest, visit a Chrysler, Jeep or Dodge dealer for a special code. Enter that code at www.askdrz.com. Chrysler displayed new vehicles Tuesday at Duggan's Irish Pub in Royal Oak. (Photos by ROB WIDDIS/Special to the Free Press)

FREE PRESS BUSINESS WRITER BY JOE GUY COLLIER - Chrysler Group retail sales for August should be better than July and up from August of last year, said George Murphy, the Chrysler Group's senior vice president of global brand marketing.

Speaking at a news event Tuesday in Royal Oak, Murphy said a new marketing program and a fresher lineup of vehicles are starting to help retail sales -- purchases made by individuals. Murphy would not comment on overall sales, which also include fleet sales to government agencies, large corporate customers and rental companies, and the measurement released monthly by the companies.

The retail side, though, is looking better, Murphy said. The Chrysler Group brought back employee-pricing incentives July 1.

At the same time, it started a new "Ask Dr. Z" advertising campaign featuring DaimlerChrysler AG Chairman Dieter Zetsche. The campaign was bolstered Tuesday with a sweepstakes, which runs until Labor Day, in which the Chrysler Group will give away nine vehicles.

New vehicles, such as the Dodge Caliber and Jeep Compass, are just starting to take hold in the market, Murphy said. Production of the Chrysler Aspen and Dodge Nitro, also all-new vehicles, started this month.

Momentum should build as these new models and others arrive, Murphy said. "The big push is probably September-October," he said.

SUVs remain the weak spot, Murphy said. Like most SUVs, the Dodge Durango and Jeep Grand Cherokee have taken a hit in sales this year.

"There's a lot of pressure in that segment," Murphy said. "That's just the way it is."

The new models and marketing campaign come as the Chrysler Group tries to hold market share in the United States. Overall sales, retail and fleet combined, are down 10% so far this year.

Standard & Poor's, a New York-based ratings firm, downgraded DaimlerChrysler shares this week to "strong sell" from "hold" based on lower expectations for the Chrysler Group.

"Our main concern is that the Chrysler segment may have difficulty reaching breakeven in '06 and '07, on our outlook and concerns for pricing and product and market mix," wrote Standard & Poor's equity analyst Marnie Cohen in the report.