June 22, 2006

Fresh Sebring takes on foes

Chrysler is hopeful model will boost sales, but analysts warn midsize segment is competitive.

Josee Valcourt / The Detroit News

DaimlerChrysler AG's Chrysler Group will unveil an edgy, all-new Chrysler Sebring today with a scowling grille and sharp lines that the automaker hopes will make it a player in the tough midsize sedan market.

The striking redesign comes as the midsize segment is expected to grow, with consumers shifting attention away from gas-hungry trucks to more fuel-efficient cars.

Chrysler still faces an uphill battle to woo buyers away from such stalwarts as the Honda Accord and Toyota Camry, but Chrysler executives are confident the Sebring, packed with a host of features and a more powerful engine, will be a contender.

"We have a better mousetrap," Scott Slagle, senior manager for Chrysler car marketing, said of the Sebring, which launches in the fall.

The made-over Sebring needs to be a success if Chrysler is to bolster its car lineup and continue the momentum started by the wildly popular Chrysler 300 in the full-size sedan segment.

Car sales for the Chrysler Group, which includes the Chrysler and Dodge brands, rose 2.6 percent in May and are up 17.9 percent for the year, mainly on the strength of the big Dodge Challenger sedan and Dodge Caliber hatchback. But Chrysler brand car sales fell 21.5 percent last month, including an 8.5 percent drop for the 300, and are down 1.5 percent for the year.

Analysts say the new Sebring, to be built at Chrysler's Sterling Heights plant, is one of 10 vehicles the automaker is introducing this year and could increase the Chrysler brand's overall sales volume, but it won't be an easy sell.

"What Chrysler has is an uphill struggle," said Tom Libby, an analyst with J.D. Power and Associates' Power Information Network, which tracks vehicle sales.

Every auto manufacturer is present in the segment, Libby said. And the Camry and Accord are "tough, tough competitors." The Camry is the best-selling vehicle in the United States.

"You have a huge owner body of Camry and Accords," Libby said. "The (cars) live up to their reputation. They don't break down. "There's not going to be a reason for (owners) to leave or switch unless there's a new model that's substantially better. The Sebring will have to go over and beyond to attract new buyers."

Dealers are confident the Sebring will appeal to consumers.

"It looks more European, where as the current Sebring is kind of like vanilla," said Brian Ackerman, sales manager at Mike Riehl's Roseville Chrysler-Jeep. Ackerman was among dealers invited to Chrysler's Auburn Hills office last week to see the new car.

The Sebring first hit the market as a 1995 coupe and convertible. Chrysler added a sedan to the mix in 2000, and sales peaked in 2001 when demand for the three models totaled 118,459 units. Last year, Chrysler sold 90,321 Sebrings.

Overall, about 2.4 million midsize vehicles were sold last year, according to CSM Worldwide Inc., in Farmington Hills.

The segment will continue to grow slightly this year as a result of new models, including Ford's Fusion and a redesigned Nissan Altima that rolls into the market later this year, said Mike Jackson, an automotive analyst with the Farmington Hills-based firm.

Chrysler doesn't expect the Sebring to outperform the Camry or Accord, Slagle said, but the automaker does hope to lure away some of those fans.

"We look at this vehicle as inspiration for the common car," Slagle said. "The car will have more styling, technology, performance and more value. In general, we're offering more car to consumers than our competitors."

Midsize sedan buyers want features typically found in higher-end vehicles.

"They want more refinement and more technology," Slagle said. "The Sebring solves that consumer dilemma."

Chrysler offers a slew of