Honda vs. Chrysler is the Minivan Segment

Anthony Fontanelle
December 19, 2007

Honda Motor Corp., the second largest seller of automobiles in Japan, is likely to surpass Chrysler LLC, an American automobile manufacturer, in the lead on the minivan segment. Honda’s Odyssey is overtaking Dodge’s Caravan models for the 2007 crown as the minivan market shrinks.

This year, Honda was able to have 158,000 Odysseys sold through November. The figure for 11 months indicates a 2.3 percent decline compared from the same period last year. Presumably, the Japanese auto maker spent about $1,510 for every Odyssey on incentives in November this year, while $156 was spent for every minivan in November of last year.

On the other hand, Dodge sold almost 155,000 units of Caravans and Grand Caravans. The sales number marked a decline of over 21 percent compared from a year ago levels. In November alone, Caravan sales were 13,347 units, compared with 14,240 units as of November a year earlier – a significant decline of about six percent.

Chrysler pointed one two reasons behind the decline in Dodge’s performance. First, the company has eliminated approximately two months of its production as it switched in the fall to the new minivan models, affecting overall supplies. The other, Dodge eliminated the short-wheelbase Caravan model and replaced it with the reconfigured minivan platform – cutting down a portion of its sales from the consumers who preferred them.

On the brighter side, the sales of Chrysler Town and Country versions surged in November. It rose to almost 10 percent from 11,607 units a year earlier to 12,629 units this year. On the year-to-date total, Chrysler had around 124,000 units of Town and Country through November, indicating a decline of over 16 percent compared with the first 11 months of 1006.

Chrysler executives said that they are optimistic with regard to the new minivans in 2008 and beyond. The company will be releasing a redesigned vehicle that comes with swiveling middle chairs, a pop-up table between the second and third rows of seat, and family-friendly satellite television.

Honda, the maker of premium Acura CL ACC cabin filter and quality engines, seems to go strong in the segment. Chrysler is confident however that the new models will help the combined Grand Caravan/Town and Country franchise continue holding down its rivals - such as Honda Odyssey and Toyota Sienna – in the shrinking minivan market. Jim Press, Chrysler’s vice chairman and president, said, “Just remember. The No. 1-selling ice cream in the world is still plain vanilla.”

According to Darryl Jackson, Chrysler vice president of U.S. sales, the consumers are responding positively to the new advertising for the line. Dealers find both the Grand Caravan and Town and Country a relatively easy to sell once the families try and test the vehicle. Currently, Chrysler is looking forward to advertise the Grand Caravan by painting it as a family room on wheels.

Source:  Amazines.com