One Hot Minivan: Chrysler Town & Country sales skyrocket; special features fan the flames
MARY CONNELLY | Automotive News
Posted Date: 8/16/05
DETROIT -- Soccer moms still rule.
The Chrysler brand is basking in minivan sales euphoria. U.S. sales of the Chrysler Town & Country are up 47.6 percent in the first seven months of 2005 compared with the same period of last year.
In July, sales jumped 87.4 percent. Employee discount pricing linked with a $2,000 customer-cash rebate lit the sales fire.
Despite the price cutting, the average per-vehicle transaction price rose in July. Customers in July shelled out more, on average, for each Town & Country than in the previous four months, according to a price analysis by the Power Information Network. The Power study is based on retail transaction data from more than 6,200 dealer franchises.
For example, the average Town & Country transaction price in July was $24,589, according to the data. That is $882 more than the average May transaction price of $23,707.
Opting for options
Customers are buying up, said Gary Dilts, the Chrysler group's senior vice president of sales. In July, customers bought a richer mix of vehicles across the board, not just minivans, Dilts said in an Aug. 2 sales call with reporters and analysts. "The mix went up substantially," he said. "And it went up quickly."
Through July, Chrysler sold 122,293 Town & Country vans, compared with 82,872 in the same period last year. Industrywide, minivan sales climbed 2.3 percent in the first seven months of 2005.
Through July, Town & Country holds a 17.2 percent share of the minivan segment, a jump of 5.3 points from the same period last year.
Also through July, the Chrysler group commanded a 38.3 percent share of the minivan market, up 4.9 points from the same period a year ago.
With employee pricing and rebates, customers see thousands of dollars fall away from the sticker price. So they are willing to pay for upscale models and more options and accessories, says Todd Fee, new-car manager at Eastside Chrysler-Jeep in Bellevue, Wash. "They are buying up," he says. "But we are also seeing a lot more dealer-installed factory accessories being purchased."
For example, Fee says, customers will add a navigation system or a reverse-warning sensor.
Thinning dealer inventories keep the trend going, he says. Buyers choose available low-end models and upgrade with options and accessories.
Other minivan sales slip
The Town & Country sales increase contrasts with sales declines of other minivan nameplates.
For example, through July, U.S. sales of the Toyota Sienna, Ford Freestar, Kia Sedona and Chevrolet Astro are off. The Honda Odyssey is another exception. Odyssey sales are up 15.2 percent in the period.
Sales of the Dodge Grand Caravan held steady in the period.
But in July, for the first time, the Town & Country outsold the Dodge Grand Caravan in retail sales, says Jeff Bell, vice president of Jeep and the Chrysler brand.
Bell gives a short answer when asked why Town & Country is hot.
"Stow 'n Go," Bell says, referring to the second-row seats that fold flat into the floor.
Stow 'n Go seating is standard on the three long-wheelbase Town & Country models. It is not available on the single short-wheelbase Town & Country, sold mostly to fleet customers.
"This is a segment where the consumers are most interested in the utility and the functionality of the vehicle," Bell says.
But the Town & Country's interior quality helps seal the deal, pushing it ahead of the Grand Caravan.
"The Town & Country -- versus even one of our sister brands -- has a style on the inside that just makes people go, 'Wow, this is really nice,'" Bell says. "It has a material usage, a design language and an exterior that people just feel like this is a luxury minivan."
Chrysler group spokesman Kevin McCormick says the Town & Country also benefits from the halo effect of the popular Chrysler 300 sedan.
Jim Sanfilippo, executive vice president of the automotive consulting firm AMCI in Bloomfield Hills, Mich., says customers see the Town & Country as a good deal for the money.
"Pound for pound, that vehicle really stood out in the minivan pack," he says. "They made it a bargain, and it has a great reputation."
What exactly is so special about the T&C's interior?
(http://www.chrysler.com/town_country/features/exterior_photos/img/enlarge_3.jpg)
I like it because it's simple, but the controls on the center counsole are a bit low for the driver to reach easily.
Would I be right in saying that sales skyrocketed because Chrysler, with the addition of the 300, has a great reputation right now?
Performance bargain of the century.
But seriously, I didn't think the Town and Country stood out in any way.
The TC stands out in versatility and value, top factors for most minivan buyers.
QuoteThe TC stands out in versatility and value, top factors for most minivan buyers.
Well, that's good then.
QuoteQuoteThe TC stands out in versatility and value, top factors for most minivan buyers.
Well, that's good then.
I think your average minivan driver is more interested in how much space in the back can a mother with a child at a store open up on her own, without having to remove anything than they are in how fast it is or how well the vehicle handles.
Sweet!
QuoteQuoteQuoteThe TC stands out in versatility and value, top factors for most minivan buyers.
Well, that's good then.
I think your average minivan driver is more interested in how much space in the back can a mother with a child at a store open up on her own, without having to remove anything than they are in how fast it is or how well the vehicle handles.
I'd imagine so.
Do they have folding rear seats,or removeable? I'm not your typical minivan buyer (I'm not a buyer at all, actually) but I think that removeable seats are just ridiculous. You have to plan ahead, store them somewhere, and if you don't have a garage, that can become quite the hassle.
The 2nd and 3rd rows fold flat into the floor, the only other minivan that can do that is the Quest and it doesn't do as good of a job.
QuoteThe 2nd and 3rd rows fold flat into the floor, the only other minivan that can do that is the Quest and it doesn't do as good of a job.
Doesn't the Sienna do that as well?
(Talk about being out of my element, I know next to nothing about minivans and mpvs)
The Sienna's 3rd row folds flat (as do the 3rd rows of all minivans except for the Sedona), but the 2nd row doesn't.
QuoteThe Sienna's 3rd row folds flat (as do the 3rd rows of all minivans except for the Sedona), but the 2nd row doesn't.
Oh, that's still pretty good, though, isn't it? My aunt's Caravan doesn't have folding seats.
QuoteQuoteThe 2nd and 3rd rows fold flat into the floor, the only other minivan that can do that is the Quest and it doesn't do as good of a job.
Doesn't the Sienna do that as well?
(Talk about being out of my element, I know next to nothing about minivans and mpvs)
I think with the Sienna that it's only the 3rd row that folds flat.
Nothing spectacular really, Dodge managed to do it with a solid axle and rwd to work around with the first gen Durango (and the second gen for that matter).
QuoteQuoteThe Sienna's 3rd row folds flat (as do the 3rd rows of all minivans except for the Sedona), but the 2nd row doesn't.
Oh, that's still pretty good, though, isn't it? My aunt's Caravan doesn't have folding seats.
Chrysler and Dodge only introduced the folding seats in the past year.
I've been astonished at the sales explosion of the Town & Country, and it doesn't appear to be from people just taking it instead of the Grand Caravan. Not to sound like Kear, but Ford and GM couldn't come close to matching either vehicle's success with their vans, and are considering abandoning the mainstream minivan because of it.
The DCX vans show that consumers just want a van that doesn't stand out, has good interior space and versatility, some level of luxury, and a low price. Ford, GM and (arguably) Kia currently match only the last of those, Nissan gets all but the first, and Honda and Toyota get all but the last.
They're not the best cars in their class IMO, they definitely have their drawbacks of rather sloppy handling and rather cheap interiors, and don't offer the refinement of some competitors. But the market has spoken.