Chrysler Inventory Improves Slightly

Chrysler finishes April with a 70-day U.S. supply of vehicles, up from prior-month but still below the U.S. industry benchmark of 80.

The auto maker had a 67-day supply of cars and light trucks at the end of March, according to Ward’s data.

The inventory shortfall is significant in the wake of CEO Sergio Marchionne’s expressed concern about having insufficient stock levels to support the auto maker’s network of 2,300-plus dealers. Marchionne raised the issue this week during Chrysler’s earnings call.

The auto maker recorded first-quarter net income of $116 million, its first profitable quarter since 2006.

However, Marchionne is upbeat following today’s announcement that Moody’s gives Chrysler a B2 credit rating with a “positive” outlook.

It shows “recognition of the efforts made by Chrysler Group’s management, employees and other stakeholders in less than two years to bring Chrysler back to life following the exit from Chapter 11,” Marchionne says in a statement.

“Moreover, Chrysler Group as a standalone company is again on the radar screen of the financial community after 13 years of absence.”

Ram sales up 23.3%.

The auto maker also is on the radar screen of U.S. new-vehicle buyers. April sales totaled 116,795, a 17.7% jump from like-2010, according to Ward’s.

Led by skyrocketing demand for the Grand Cherokee midsize SUV, Jeep deliveries soared 58.7%. And a solid performance by the Chrysler 200 boosted the core brand’s car sales 35.8%.

The Ram fullsize pickup, Chrysler’s volume flagship, saw deliveries jump 23.3%.

Through April, total Chrysler sales were tracking 22.4% ahead of like-2010.

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