Some Chrysler Models in Shortage

WASHINGTON, DC - June 30, 2009: The AIADA newsletter reported that the nearly nine-week long production halt at Chrysler Group LLC has left some of its dealers with an unusual problem: a shortage of high-demand models such as the Jeep Wrangler and the Chrysler Town and Country minivan.

According to the Wall Street Journal, the tightening supply is firming up prices and profit margins, and other auto makers are also seeing signs of stability.

Ford Motor Co. said Monday that it will raise third-quarter production 16 percent from a year ago, citing lower inventory and increased demand.

The trend at Chrysler suggests it may be on the way to surmounting a key hurdle that has long stood between it and profitability. For the last several years, Chrysler has flooded dealers with inventory and dumped tens of thousands of vehicles a year into rental fleets. The excess supply forced the auto maker to offer rebates averaging $5,600 in February to sell cars.

A glut of unsold cars also cost dealers steep interest payments. The shortages have helped increase average sales prices for new and used Chryslers from a year earlier, according to online shopping site Edmunds.com.