Chrysler Group Looks to Expand
International Sales and Dealer Network
Auburn Hills, Mich., Jun 20, 2007 - As Chrysler Group continues to
increase sales and expand operations in markets outside North America,
the company has identified a need for additional sales outlets in key
established and growth markets. This week, approximately 70
international investors and dealers are visiting the company's
headquarters in Auburn Hills for a sneak peek at the potential for
Chrysler, Jeep and Dodge brand franchises in their respective markets.
"While
we will continue to
aggressively defend our position in NAFTA, it is important that we
expand in other markets so that we are not as dependent on the ups and
downs of a single region," said Tom LaSorda, President and CEO -
Chrysler Group. "With a more global focus we will be better able to
take advantage of emerging opportunities."
Dealer Investment
Forum
The
Chrysler Group has invited the
potential partners from 19 countries all over the world, including
Russia, Japan and the Middle East. During three days with senior
Chrysler Group executives, the investors will learn more about the
different avenues the company is pursuing to become a more global
operation as it implements the Recovery and Transformation Plan, a
roadmap for returning to financial health. They will also gain insight
into the Chrysler Group's growth plans outside North America and
experience first-hand the unique products and powertrains that would be
available through their franchise if they choose to invest. This week's
forum follows a conference held in China where 140 dealers attended.
"Due
to the expansion of our global
portfolio, we see an opportunity not only to strengthen the
relationship with our current dealers, but also to look for new
business partners that can help us to take our international business
to the next level," said Michael Manley, Executive Vice President -
International Sales, Marketing and Business Development.
Outside
North America, Chrysler Group
has roughly 1,400 sales outlets. In established markets, like Western
Europe, the company plans to add roughly 100 new sales outlets over the
next two years. Additional growth in the dealer network will increase
the company's presence in growing markets, such as Russia and China,
where the existing dealer network is doing well, but the goals of
additional sales growth will require adding more locations.
The
addition of these new outlets
will increase customer satisfaction, as well as contribute to increased
sales. Chrysler Group remains committed to ensuring a positive customer
experience with the product itself, and with the dealership for both
sales and service experiences. Having the necessary number of
dealerships exposes more customers to the Chrysler, Jeep and Dodge
brands and also means that customers are able to visit a facility in or
near their community after purchasing the vehicle for any necessary
maintenance.
Performance
Outside North America
In
2006, Chrysler Group expanded the
availability of the Dodge brand in key markets all over the world with
the launch of the Dodge Caliber, the brand's first volume vehicle
outside North America. The next two Dodge vehicles, making their way
into global markets this summer, are the Dodge Nitro and Avenger.
Demand for the Dodge brand has been strong so far this year as Dodge
Caliber sales soared to 13,265 units year-to-date, making it the
top-selling Chrysler Group vehicle outside North America. By 2009,
Dodge could account for roughly 30 percent of the Company's
international sales.
"Many
dealers outside North America
have been very successful with the sales of all three Chrysler Group
brands in their local markets," said Thomas Hausch, Vice President of
International Sales. "In Western Europe alone, we increased our return
on sales by more than 20 percent, from 1.7 in 2005 to 2.1 in 2006. This
is a clear indication that the new vehicles we are introducing are
well-received by our customers and that we deliver to our dealers one
of the best return on sales within the industry."
Sales
growth for Chrysler Group as a
whole outside North America has reached an unprecedented two full years
of monthly sales gains, and year-to-date growth of 16 percent (91,412
units) over the same period of time in 2006. Much of this growth is
attributed to the increase in the number of models that are being
introduced in markets all over the world with options that meet the
needs of global customers. Chrysler Group management has indicated that
the plan is to double last year’s sales outside North America and reach
approximately 400,000 units in the next five years.
To
support this growth plan, between
2003 and 2007, The Chrysler Group will approximately double the number
of products available outside North America from nine to 20 vehicles.
Within the number of models available, the company will triple the
number of vehicles in right-hand-drive, from six to 18; and, quadruple
the number of vehicles with an option for a diesel powertrain, from
four to 16.
Chrysler
Group sells and services
vehicles in more than 125 countries around the world. Sales outside
North America currently account for approximately 8 percent of the
company's total global sales. Vehicles available outside of North
America come from all three Chrysler Group brands, with limited
availability on some trucks and SUV models.