Swivel 'n Go, Go, Go

Chrysler Group is preparing for the worst as it ramps up its redesigned-for-'08 minivans. And that's not all bad.

Production has yet to begin, and the auto maker already fears it may have underestimated demand for the vehicles' breakthrough Swivel 'n Go seating system.

“Unfortunately, we are the worst,” marketing chief George Murphy says of the auto maker's ability to predict consumer response. “We miscalled the Wrangler hardtop 4-door. We're nervous about the (Sebring) convertible now. This is another one.”

Demand for the Jeep Wrangler Unlimited's optional “Freedom Top” removable roof has been so strong that Chrysler had to call on its supplier for more deliveries. The supplier, Michigan-based Meridian Automotive Systems, is adding manufacturing capacity to fill the increased orders.

Meanwhile, the Sebring convertible — which comes in three styles, including a retractable hardtop — launched to sales of more than 1,400 units in April, its first month of availability.

Murphy, senior vice president-marketing, declines to reveal projected take-rate volumes, but admits the auto maker is on edge.

“We've got a number for Swivel 'n Go, and we're all a little bit nervous because we've been light (in the past),” he says during a media preview of Chrysler's new advertising campaign in which the new seating system is featured.

Chastened by its experience with Wrangler Unlimited, Chrysler has alerted Swivel 'n Go supplier Intier Automotive Inc. that additional production may be necessary.

Swivel 'n Go, which debuts this fall with the production launch of the Chrysler Town & Country and Dodge Grand Caravan, allows second-row passengers to face the rear of the vehicle by turning their seats 180 degrees. Also available is an optional table that can be set up between the two rows for activities such as dining or game-playing.

Deployment of the seats and table are allowed while the vehicle is moving because Chrysler has proved to regulators they are safe.

Against this backdrop, Stow 'n Go is a wild card, a Chrysler spokesman suggests.

Also from Intier, Stow 'n Go, which conceals second-row seating beneath a minivan's floor, thereby increasing cargo capacity, still will be available. So the auto maker also must calculate how many vehicles are likely to require this system instead of Swivel 'n Go.

Murphy recalls how, after Stow 'n Go made its debut in '05, Chrysler forecast a 15% take rate for standard fold-and-tumble seating.

“It went to zero so fast you couldn't believe it,” he says. “When you have a feature that really resonates, it's going to be a pretty high take-rate.”

Stow 'n Go was widely credited with boosting Chrysler minivan sales in 2005. T&C deliveries rose 42% compared with 2004.

Unlike the redesigned Wrangler, which is in short supply according to dealers, Murphy assures there will be no shortage of the auto maker's new minivans once production begins this summer.

“Minivan is such a high-volume vehicle that, trust me, there will be more than one in every dealership (at launch),” he says. “You won't hear a dealer saying they don't have a minivan.”

The vehicle will be assembled at a pair of Chrysler plants — St. Louis and Windsor, ON, Canada.

Sales of the T&C and Dodge Caravan minivans were down last year, 12% and 6.9%, respectively. But Chrysler and Dodge minivans dominated the segment, claiming a 4.3% combined share of the total light-truck market, according to Ward's data.

The Honda Odyssey followed with a 2% share after enjoying a 2.1% sales hike vs. prior-year. But its unit sales total of 177,919 still trailed the first-place Caravan's 211,140 deliveries.

Wrangler Sales Through Roof; Supplier Adds Capacity

Chrysler Group can expect Jeep Wrangler sales to remain strong now after moving to increase the flow of parts for one of the redesigned SUV's key selling features.

Called “Freedom Top,” the $1,585-$1,835 option consists of three removable roof panels to enable open-air driving. And demand has been so strong Chrysler has called on supplier Meridian Automotive Systems to make more. “They've authorized us to increase our capacity,” Meridian President and CEO Richard Newsted confirms.

Newsted declines to reveal the value of the transaction but indicates Meridian will be investing in an existing plant.

However, there are no plans to add a third production shift to the Wrangler's assembly site in Toledo, OH, Chrysler says.

Last summer's addition of the 4-door Wrangler Unlimited to Jeep's lineup has boosted the brand's sales totals. According to Ward's data, Wrangler sales through April — 2-door and 4-door models — were up nearly 78% compared with year-ago.

Chrysler reports April Jeep deliveries rose 40% vs. like-2006 and 10% year-to-date.

The steep curve in Wrangler demand was evident soon after production began. And during January's National Automobile Dealers Assn. convention, supply chain bottlenecks were top-of-mind for Chrysler President and CEO Tom LaSorda.

Wrangler's modular “Freedom Top” features three removable panels — two in front, one in rear.

Wrangler demand is “way above our production plan,” LaSorda said at the time. “So when you get into that situation, you're trying to ask suppliers to give us parts.”

Even Wrangler's standard-equipment soft-top supplier, Colorado-based Bestop, is running production seven days a week, Ward's is told.

Dealers are relieved to learn of Chrysler's aggressive play to increase availability of the Freedom Top. Al DePalma, sales manager at Goldstein Chrysler Jeep in Latham, NY, says he has a backlog of orders for Wrangler Unlimited models with Freedom Top.

Customers prefer the modular roof to the one-piece removable top featured on the previous-generation Wrangler. “It's just a lot easier than the old hardtop,” he adds.

While Newsted says Meridian plans to tool up for additional production “as soon as possible,” it could be third quarter before the Freedom Top pipeline is completely filled.

Currently, the product is manufactured at Meridian's plant in Huntington, IN.

“As the volume increases, we will probably be transferring the 2-door version to another Meridian facility to support the increase of the 4-doors,” Newsted tells Ward's. “But we haven't done that yet.”

Other strong April sales performers for Chrysler were the Dodge Ram pickup, up 10.8%, and the auto maker's minivan offerings, which benefited from a special promotion. April year-over-year deliveries of the Chrysler Town & Country and Dodge Caravan models rose 34.7% and 10.9%, respectively.

Asked how Chrysler could achieve gains in a market that saw overall decline, North American sales chief Steve Landry jokes: “Pixie Dust.”

Chrysler also launched a May incentive program called “Maximize Your Miles,” which features low-rate financing for 60 months. In addition, 0% financing was available with bonus cash across the auto maker's Dodge, Jeep and Chrysler showrooms.

Chrysler saw a 17% increase in April sales outside North America. Its Dodge Caliber C-car, which is leading the brand's planned charge into China next year along with the Avenger midsize sedan, was the leading seller.
— Eric Mayne