• by Karl Greenberg , March 2, 2007

Chrysler Group is hoping a thaw in March will help turn the company around, after the DaimlerChrysler division posted an 8% drop in February sales versus February 2006. Larger slow-sellers slid and newer, smaller vehicles with better mileage gained.

The company is still reeling from the recent announcement by its parent that all options are on the table with regard to its future with the European maker of Mercedes-Benz vehicles.

Now, it will push trucks with a "National Truck Month" marketing program. The effort is aimed at moving Chrysler's heavily incentive-ized Dodge Ram pickup, which saw a 17% increase in sales for the month, to 24,379 units. It offers a free upgrade to a Hemi engine for Ram buyers and deals on Dakota and Durango.

Large vehicles like Durango are seeing sales plummet as buyers flock to more efficient alternatives. That SUV saw a 43% drop in sales last month, with Jeep's Grand Cherokee off 22%.

Steve Landry, vice president/sales and field operations, writes in Chrysler's corporate blog that the announcement by DaimlerChrysler last month might have dampened sales. "I think it had something to do with it; the industry was soft enough on its own.

"We have been planning truck month for a long time," he wrote, "with special incentives for consumers and dealers as well."

Landry said that March is traditionally a strong selling month, and he isn't worried about long-term detriment to the market from this week's market crash, rising gasoline prices, and general consumer jitters.

"I was quite surprised with the volatility of the stock market earlier this week," he said. "The good news is, 48 hours later, the markets started to bounce back." He added that stronger sales of Chrysler's smaller vehicles will buffer gas price impact. "Most of our newer products have 30 mpg ratings or more, so we are capturing a wider scope of customer base."

The company is getting traction from its smaller vehicles. Chrysler posted 9,900 sales of Dodge's compact Caliber wagon, up 14% versus last month; and a 3% increase in Jeep Compass sales, to 4,071 units.

The company also reported that it broke records last month for its Jeep Wrangler vehicles, with a 63% increase, to 5,673 vehicles. The new Avenger sedan has accounted for 5,205 units. Jeep's newest vehicle, the crossover Patriot, is rolling into showrooms this month.

The Chrysler division, however is posting disappointing results for its new Sebring, sales of which are down 27%.