Chrysler cuts Viper output amid slow sales, growing inventory
10-04-13, 08:34 AM
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Chrysler cuts Viper output amid slow sales, growing inventory
http://www.autonews.com/article/2013...#axzz2gbEJaMfx
Chrysler Group has cut output of the SRT Viper by a third and will reassign scores of workers to other plants because of slow sales, growing inventories, and the onset of colder weather.
Workers at Chrysler's Conner Avenue Assembly plant in Detroit, where the car is assembled, were told of the production moves today. None will be laid off; instead they will be reassigned to other Chrysler plants in the Detroit area, a Chrysler spokeswoman said. The exact number of employees who will be reassigned is not yet known.
Chrysler had been building an average of nine Vipers per day. Under a revised production schedule, it will build six per day.
Ralph Gilles, head of the SRT brand, said that the Viper's delivery to Chrysler's 443 SRT-certified dealers was delayed earlier this year by difficulties in achieving internal quality standards set for the exotic sports coupe.
"We got off to a late start. We had hoped to begin shipping vehicles late last year, but we shipped the first 67 units in April," Gilles said. Chrysler lifted its self-imposed quality holds over the summer and shipped over 200 held Vipers to its SRT dealers in July and August.
"We typically do very well with the Viper in early spring," Gilles said.
The reengineered 2013 Viper was first shown in April 2012 at the New York auto show, but it wasn't available to dealers and customers until early this year.
The two-seat sports coupe is equipped with the automaker's most powerful engine, a naturally aspirated V-10 that produces 640 hp and 600 pounds-feet of torque.
Pricing for the 2014 model starts at $104,480, including destination, and each car comes with a "track day" of professional driving instruction included.
Gilles had originally said Viper production would be limited to 2,000 vehicles per year, but he said today that number proved optimistic.
"We're really looking at the reality of this type of car in this economy, as well as us controlling the market and making sure that we don't overbuild," Gilles said. The company built 805 Vipers during the 2013 model year, and has switched over to producing 2014 models now.
Gilles said that interest in the Viper remains strong, and that Chrysler received 2,000 dealer and customer orders for Vipers during 2013, including those for 2014 models.
Dealers were asked to pay a $25,000 fee and undergo special training in order to sell the Viper to retail customers.
In eight months on the market -- Viper's first sale was recorded in February -- Chrysler dealers have only sold 426 Vipers in the United States, and dealers have another 565 unsold units in stock -- a 289-day supply.Outside of the United States, the Viper is sold only in a handful of countries in the Middle East.
Even though the 2013 Viper now is now equipped with electronic stability control, which is required under federal safety law, the powerful rear-wheel-drive sports car is a slow seller in the winter months and its tires are not made for cold-weather driving.
Gilles said that most remaining unsold inventory is located in dealerships in warmer climates.
To boost consumer demand, Gilles said SRT would begin visiting Viper dealers in the Southeast in November to allow consumers to test-drive factory-owned Vipers. Some dealers have been reluctant to entrust the powerful and expensive sports cars -- which can retail at up to $160,000 -- to consumers with unknown driving skills. The program will spread north next spring with the return of warmer weather.
"We really have to focus on putting butts in seats," Gilles said. "A lot of people are unnecessarily intimidated by the car."
Vipers are hand-built at the Conner Avenue factory.
The plant was idled in July 2010 when the previous version of the sports car, which was then marketed under the Dodge brand, went out of production. It was reopened in December 2011 ahead of the production launch of the 2013 SRT Viper in December 2012.
Before today's changes were made, the plant had 171 employees, including 145 hourly and 26 salaried workers.
Chrysler Group has cut output of the SRT Viper by a third and will reassign scores of workers to other plants because of slow sales, growing inventories, and the onset of colder weather.
Workers at Chrysler's Conner Avenue Assembly plant in Detroit, where the car is assembled, were told of the production moves today. None will be laid off; instead they will be reassigned to other Chrysler plants in the Detroit area, a Chrysler spokeswoman said. The exact number of employees who will be reassigned is not yet known.
Chrysler had been building an average of nine Vipers per day. Under a revised production schedule, it will build six per day.
Ralph Gilles, head of the SRT brand, said that the Viper's delivery to Chrysler's 443 SRT-certified dealers was delayed earlier this year by difficulties in achieving internal quality standards set for the exotic sports coupe.
"We got off to a late start. We had hoped to begin shipping vehicles late last year, but we shipped the first 67 units in April," Gilles said. Chrysler lifted its self-imposed quality holds over the summer and shipped over 200 held Vipers to its SRT dealers in July and August.
"We typically do very well with the Viper in early spring," Gilles said.
The reengineered 2013 Viper was first shown in April 2012 at the New York auto show, but it wasn't available to dealers and customers until early this year.
The two-seat sports coupe is equipped with the automaker's most powerful engine, a naturally aspirated V-10 that produces 640 hp and 600 pounds-feet of torque.
Pricing for the 2014 model starts at $104,480, including destination, and each car comes with a "track day" of professional driving instruction included.
Gilles had originally said Viper production would be limited to 2,000 vehicles per year, but he said today that number proved optimistic.
"We're really looking at the reality of this type of car in this economy, as well as us controlling the market and making sure that we don't overbuild," Gilles said. The company built 805 Vipers during the 2013 model year, and has switched over to producing 2014 models now.
Gilles said that interest in the Viper remains strong, and that Chrysler received 2,000 dealer and customer orders for Vipers during 2013, including those for 2014 models.
Dealers were asked to pay a $25,000 fee and undergo special training in order to sell the Viper to retail customers.
In eight months on the market -- Viper's first sale was recorded in February -- Chrysler dealers have only sold 426 Vipers in the United States, and dealers have another 565 unsold units in stock -- a 289-day supply.Outside of the United States, the Viper is sold only in a handful of countries in the Middle East.
Even though the 2013 Viper now is now equipped with electronic stability control, which is required under federal safety law, the powerful rear-wheel-drive sports car is a slow seller in the winter months and its tires are not made for cold-weather driving.
Gilles said that most remaining unsold inventory is located in dealerships in warmer climates.
To boost consumer demand, Gilles said SRT would begin visiting Viper dealers in the Southeast in November to allow consumers to test-drive factory-owned Vipers. Some dealers have been reluctant to entrust the powerful and expensive sports cars -- which can retail at up to $160,000 -- to consumers with unknown driving skills. The program will spread north next spring with the return of warmer weather.
"We really have to focus on putting butts in seats," Gilles said. "A lot of people are unnecessarily intimidated by the car."
Vipers are hand-built at the Conner Avenue factory.
The plant was idled in July 2010 when the previous version of the sports car, which was then marketed under the Dodge brand, went out of production. It was reopened in December 2011 ahead of the production launch of the 2013 SRT Viper in December 2012.
Before today's changes were made, the plant had 171 employees, including 145 hourly and 26 salaried workers.
10-04-13, 12:56 PM
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I have to wonder if times have changed or what maybe just the Viper is not that appealing.
Tesla is selling cars for $100k so people obviously can afford $100k for a car.
911S or Corvettes are selling well.
Just that, some people might not be interested in Vipers just as when people stopped buying cars like RX7 or S2000. If there was a huge untapped demand for S2000 likely they wold be made but not saying its not a fantastic car, I owned one for 6 years but some people don't want a pentlaty box even tho it's super fun to drive the reality is more people would buy a more livable or better everyday driver than a Viper such as Corvette or 911 for example, which is probably what is hurting the Viper sales IMO.
And I have found as I get older and face it older people can more easily afford $100K cars, but just older people may be less interested in raw power or fastest track times, and more look for something that has decent power but don't really care if its a few tenth slower in the 1/4 miles drags race.
I am sure there are lots of people who do like the Viper but do they like it enough to buy it over a Tesla or C6 or 911S? That's the question.
Tesla is selling cars for $100k so people obviously can afford $100k for a car.
911S or Corvettes are selling well.
Just that, some people might not be interested in Vipers just as when people stopped buying cars like RX7 or S2000. If there was a huge untapped demand for S2000 likely they wold be made but not saying its not a fantastic car, I owned one for 6 years but some people don't want a pentlaty box even tho it's super fun to drive the reality is more people would buy a more livable or better everyday driver than a Viper such as Corvette or 911 for example, which is probably what is hurting the Viper sales IMO.
And I have found as I get older and face it older people can more easily afford $100K cars, but just older people may be less interested in raw power or fastest track times, and more look for something that has decent power but don't really care if its a few tenth slower in the 1/4 miles drags race.
I am sure there are lots of people who do like the Viper but do they like it enough to buy it over a Tesla or C6 or 911S? That's the question.
Last edited by rai; 10-04-13 at 01:02 PM.
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10-04-13, 02:14 PM
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10-04-13, 08:15 PM
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$100k for a Viper that gets beat by a Vette? No surprise that sales are slow. You can buy a ~2010 Aston Martin V8 Vantage or an early model Gallardo for that kind of money. Viper doesn't possess the "name status" compared to other exotics.
10-04-13, 08:47 PM
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For 100k, there are loads of better options than the Viper. I used to love the viper 8-10 years ago, but now I rarely hear it. It's not so appealing anymore.
10-05-13, 07:26 AM
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It's a hard sell when you can get two 2014 base Corvettes (start at $51K) for the price of one Viper. And the Corvette is a better everyday machine. And the new one looks nearly as exotic as the Viper. Actually, they look quite similar overall.
Yes, a V8 option would make total sense. Then price it around $80K. Guaranteed it would far outsell the V-10. No one's ever going to use the over 600 hp available to them in the Viper. Only a pro tester on a wide open track could, I drive at illegal speeds everyday with my 106 hp car. Power is nice to have but you can't use it. Or you can, and head off to prison.
Yes, a V8 option would make total sense. Then price it around $80K. Guaranteed it would far outsell the V-10. No one's ever going to use the over 600 hp available to them in the Viper. Only a pro tester on a wide open track could, I drive at illegal speeds everyday with my 106 hp car. Power is nice to have but you can't use it. Or you can, and head off to prison.
10-05-13, 09:48 AM
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I drive at illegal speeds everyday with my 106 hp car. Power is nice to have but you can't use it. Or you can, and head off to prison.
10-05-13, 11:29 AM
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Originally Posted by mmarshal
I'm assuming that you either haven't gotten caught, or, if so, don't have enough tickets/points for the state to suspend your license.
Last edited by -J-P-L-; 10-05-13 at 02:56 PM.
10-05-13, 12:37 PM
#15
Lexus Champion
Personally, I never thought of the new SRT Viper as a car that is in anyway 'inferior'.
This new Viper is in fact fantastic (and it's amazing because nowadays, one needs to ask oneself: How many American sports cars have V10 engines these days???)
With that said though, I do have a suspicion as to why some aren't willing to buy the Viper and the reason I suspect is that a number of people are scared of it.
This new SRT Viper is one of the most brutal American sports cars out there today. It's something that is so raw, lethal and deadly that it might scare the **** out of average people.
Perhaps that's why even if some people have tons of money, they are afraid to buy it
P.S.
IMHO, they should consider exporting this new SRT Viper beyond the Middle East.
They can launch the car here in the Philippines (since our Mustang 5.0 V8 has had some success) and more importantly, launch the car in other major LHD markets such as Mainland China.
This new Viper is in fact fantastic (and it's amazing because nowadays, one needs to ask oneself: How many American sports cars have V10 engines these days???)
With that said though, I do have a suspicion as to why some aren't willing to buy the Viper and the reason I suspect is that a number of people are scared of it.
This new SRT Viper is one of the most brutal American sports cars out there today. It's something that is so raw, lethal and deadly that it might scare the **** out of average people.
Perhaps that's why even if some people have tons of money, they are afraid to buy it
P.S.
IMHO, they should consider exporting this new SRT Viper beyond the Middle East.
They can launch the car here in the Philippines (since our Mustang 5.0 V8 has had some success) and more importantly, launch the car in other major LHD markets such as Mainland China.