PT Cruiser likely facing end of road after 2009

AP

2008 Chrysler PT Street Cruiser

ROYAL OAK, Mich. — Chrysler LLC said Tuesday it will build its PT Cruiser at least through 2009 but made no promises after that, fueling speculation that the stylish retro wagon could be on its way out, hurt by a recent slump in sales.

Larry Lyons, vice president of Chrysler's front-wheel-drive product team, wouldn't give any more details on the PT Cruiser's future as he introduced the Sunset Boulevard edition on the sidelines of the Woodward Dream Cruise, an annual classic car fest in suburban Detroit. The Sunset Boulevard is the 11th in a series of customized PT Cruisers.

When it went on sale in 2000, the PT Cruiser was a triumph of Detroit design, with the eye-catching looks of a gangster's getaway car. Chrysler expected to sell just 70,000 PT Cruisers a year but sold more than double that in 2001. The company has sold nearly 1 million Cruisers in the U.S. in the vehicle's lifetime.

"I think it was really emblematic of Chrysler taking the mantle of styling leadership," said Jack Nerad, executive market analyst for Kelley Blue Book. "Along with the Dodge Viper and the 300C, it really represented the fact that Chrysler was getting very expressive and creative styling-wise. It influenced everybody."

The PT Cruiser's U.S. sales were up 4 percent in 2006 to 138,650, or nearly as many as the hot-selling 300C sedan. But they've started to falter as the PT faces competition from other retro models such as the Chevrolet HHR and the growing number of wagon-like crossovers on the road.

Nerad said Chrysler also is facing more competition on the styling front than it did in 2000. PT Cruiser sales were down 25 percent in the first seven months of this year, according to Autodata Corp.

Despite the drop, demand is still strong enough for Chrysler to continue making the PT Cruiser, said Frank Klegon, Chrysler executive vice president of product development.

"It's built in Mexico. It's in a very good financial position because it's a low-cost plant. It's very efficient," Klegon said. "Demand obviously has softened up. We'll build out in a reasonable period of time and that will be it."

Klegon said the company has some surprises on the drawing board, possibly a funky small truck or other niche vehicle that could take the PT Cruiser's place and be built on existing, flexible underpinnings. Klegon wouldn't give further details.