Chrysler March U.S. sales tracking down 10 percent

Chrysler's U.S. sales for March are tracking down 10 percent from a year ago after the automaker curtailed discounts sharply, a company executive said on Wednesday.

But retail sales have surged 50 percent from the same period in February, said Fred Diaz, who heads Chrysler's Ram brand and is also responsible for the automaker's U.S. sales.

"Consumer confidence in our company is starting to grow. People are starting to realize we are here to stay and we will continue as a corporation," Diaz told reporters on the sidelines of a company event.

Diaz said March sales are running lower compared to 101,001 units for March 2009, when the No.3 U.S. automaker pushed sales with heavy cash rebates a month before it filed for bankruptcy under the direction of the Obama administration.

"Basically, we were operating as a supply-based company rather than a demand-based company, with heavy rebates and incentives. We are not doing that anymore," Diaz said.

Chrysler emerged from bankruptcy in June under the management of Italy's Fiat SpA.

Chrysler sold 84,449 vehicles in February of 2010, flat from the previous year and marking the first time in 25 months that the company did not experience a year-to-year monthly sales drop.

Analysts expect U.S. auto industry sales to rise sharply in March from the prior year, after Toyota Motor Corp launched unprecedented discounts to recover from a damaging recall crisis, prompting major rivals to respond with stronger incentives.

Hurt by a lack of new products, Chrysler U.S. sales fell 36 percent in 2009, underperforming a 21 percent decline in overall industry sales.

Chrysler has said that 75 percent of its vehicle lineup will be refreshed by the fourth quarter of this year, and the Fiat 500 subcompact is to hit showrooms by the end of the year.