Chrysler pumps up Patriot production

By Alex Gary

BusinessRockford.com

For the first time since it was launched in January 2006, the Dodge Caliber was not the king of the assembly line at Chrysler LLC’s Belvidere assembly plant.

In April, the 2,700 employees working at the plant turned out 10,311 Jeep Patriots compared with 8,225 Dodge Calibers. Workers also completed 3,923 Jeep Compasses, the third vehicle put together in Belvidere.

Chrysler ramped up Patriot production even though the Caliber remains the top seller of the fuel-efficient trio and dealers, at least locally, are clamoring for more. Dealers have sold 58,071 Calibers through April this year, about 3 percent ahead of last year’s pace, even though Chrysler’s overall sales were down 11 percent in the first quarter.

And the Patriot, which has been on the market for just 15 months, is cutting the sales gap. In January, the Caliber outsold the Patriot worldwide, 14,496 to 7,999. In April, dealers sold 10,086 Patriots compared to 13,734 Calibers.

Andy Brouer, general manager of Bryden Motors in Beloit, which sells Dodge, Jeep and Chryser models, said the dealership sells about the same number of Calibers and Patriots each month.

“The Caliber is still a very strong car, but with the styling cues and the Jeep name, I expect the Patriot to overtake the Caliber in June and July,” Brouer said.

Eric Merkle, an auto analyst for Michigan-based IRN Inc., said it’s too early to tell whether Chrysler is banking on the Patriot as a top seller. The compact sport utility vehicle received the highest marks of the Belvidere trio but its sales have been somewhat of a disappointment.

“It’s hard to make sense of Chrysler’s production levels,” Merkle said. “Historically, when they introduce a car, they overproduce it and then cut back when sales don’t meet expectations. In this case, they were probably getting low on Patriots and wanted to get more out there. It’ll be interesting to see what the May totals are.”

In early March, the now privately owned Chrysler eliminated the third shift — and 1,100 workers — at the Belvidere plant as part of a companywide cost cutting effort — and a glut of the Belvidere vehicles already on dealer lots.

In 2007, workers finished 333,077 of the vehicles, but dealers worldwide sold just 294,894. But as gas prices soar to record levels, consumers are targeting greater fuel efficiency. The Caliber, Compass and Patriot can reach 28 miles per gallon on the highway.

In 2008, dealers are on pace to sell more than 360,000 Calibers, Compasses and Patriots while the Belvidere work force is on pace to make just 285,000.

The sales levels, though, might ease in May thanks to Chrysler’s well-publicized “Let’s Refuel America” program. The company is offering buyers a gas credit card that guarantees you will pay no more than $2.99 for a gallon of gas for three years. The company is banking that gas prices, which are nearing $4 a gallon locally, will continue to rise in the summer and hopes the incentive will lure more buyers back to its more profitable line of trucks, SUVs and minivans.

“When gas prices go up, it’s good for the Belvidere plant. There’s no question,” Merkle said. “The gas giveaway is an interesting idea. It’s not as costly as straight cash incentives, and it’s gotten good publicity because it’s innovative. But it will push some buyers away from the Belvidere products.”

Assistant Business Editor Alex Gary may be reached at agary@rrstar.com or at 815-987-1339.

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