Chrysler nears "respectability" in Oz
BY BYRON MATHIOUDAKIS | 22nd Mar 2007
"In fact, I will be disappointed if we only stop at 10,000," says managing director Gerry Jenkins.
It was this time last year that Mr Jenkins announced to GoAuto that respectability in the Australian new-vehicle market commences at 10,000, with 14,000 sales by the end of 2008 remaining as his goal.
In 2006, Jeep, Chrysler and the returning Dodge marques broke through the 9000-unit barrier, after achieving 5099, 3610 and 344 sales each respectively.
This compares to Chrysler and Jeep total of 7557 in 2005.
Driving the Chrysler Group’s growth for 2007 and beyond will be freer supply of popular models such as the 300C and recently released Caliber small car, as well as incremental volume achieved through fresh product in new segments for all three American brands concerned.
With the Caliber in particular, Mr Jenkins believes last year’s total would have been greater if he had received more stock. Unexpectedly high demand for it in America forced Dodge to veto hundreds of cars that were originally slated for Australia, to satiate US appetites.
Freer supply this year might see the Caliber hit its original 160 monthly target this year it is currently running at less than half of that.
"We’ll sell every Caliber that we can get our hands on," believes Mr Jenkins.
Increased availability for the popular Hemi V8 models, as well as the arrival of high-performance SRT8, turbo-diesel and wagon variants, should also keep 300C sales burbling above last year’s 155 units per month result.
Jeep has already launched the model it believes will be the Chrysler Group’s biggest selling individual performer, the JK Wrangler.
Completely new from the ground up, the redesigned Jeep 4x4 icon’s biggest weapon is the new-to-market Unlimited four-door five-seater wagon.
Aided by the arrival of an advanced diesel engine and far-roomier and more refined interiors, Jeep is banking on the newcomer to nab two-thirds of all Wrangler sales, which should nestle in around 2000 to 2500 this year.
Interestingly, of the 10,030 previous-edition TJ Wranglers sold in Australia during its decade-long run, more than 1500 found buyers in the last two years.
Two more new-to-Jeep models, the small car-based Compass and upcoming Patriot, should add (an extremely conservative) 2000 incremental units to the Chrysler Group total for 2007, as long as supply blockages from America do not hamper them Caliber-style.
Both are catapulting Jeep into the fertile compact SUV hunting ground dominated by the Toyota RAV4, with the ultimate goal being to nurture the holy grail of loyal young buyers to the brand.
A similar strategy is behind the introduction of the Dodge Nitro, a Jeep Cherokee-derived – but bespoke bodied – mid-sized 4WD wagon that will be priced well-under the $40,000 mark.
More new territory will be explored from mid-year when the Toyota Camry-chasing Chrysler Sebring and Dodge Avenger mid-sized sedans arrive midyear and in September respectively.
The former will add a four-seater convertible late in 2007, giving Chrysler a useful presence in this burgeoning sub-$50,000 segment.
Mr Jenkins is confident that the Nitro and Avenger will give the Dodge brand the critical mass it needs to get onto buyers shopping lists.
"We thought we could achieve critical mass for Dodge with the Caliber until we found we couldn’t get the supply we needed… and it hasn’t become the brand awareness vehicle that we hoped for," he admits.
Although Mr Jenkins would not be drawn into speculation about future models for Australia, he did say that great opportunities in the B-segment exist for Dodge, as a result of its recent light-car model strategy with China’s Chery manufacturer.
An inexpensive, Suzuki Swift style hatchback, with styling cues reminiscent of the 2006 Dodge Hornet concept car, is thought to be in the pipeline for a global assault commencing in 2008.
Before that, the fifth-generation Chrysler Voyager will lob into Australia.
Due late this year or early in 2008, it will continue to be offered as a premium people mover alternative, even though the Voyager’s sourcing will switch from Austria – where all models bound for Australia have originated in the 10 years the model has been available – to America.
"It will continue to be targeted as a premium people mover against cars like the (Volkswagen) Passat wagon and Touareg," Mr Jenkins reveals.
Beyond that, the two-seater Demon convertible concept car, one of the stars of this month’s Geneva motor show, is under study for production feasibility, with 2009 rumoured to be a likely on-sale time.
Mr Jenkins says that he’d love to have a car like that in his Dodge portfolio.
With all this new-model activity, and the expected extra volume it will bring to the Chrysler Group’s 65 dealers nationwide, no extra outlets are in the game plan for now.
"We feel we have sufficient representation – it’s just a question of fulfilling the plan," Mr Jenkins says.
The plan is for his dealers to increase their throughput, from around 25 cars per month each to roughly double that figure.
"We’ve been discussing about future volume predictions with dealers, and what they have to do on their side of the marketing equation to step up to realise their full potential.
"Things like the actual size of the facility, the amount of service space and how the overall infrastructure of that particular dealer is set-up… We’ve also looked at capitalisation, and whether (the dealer) has the wherewithal to do the volume we’re looking for… as well as the amount of people working (for the dealership) as well as the quality of people.
"It’s something that is always on going – a dealer upgrade program." Going well beyond 10,000 sales this year should be a no-brainer then for the Quebecois-born local Chrysler boss: "If we close this year at selling only 10,000 vehicles after all these new product launches, I’ll be the new district manager of Rimouski!"
| What's coming from Chrysler Group: | |
| Jeep Patriot | Mid 2007 |
| Dodge Nitro | Mid 2007 |
| Chrysler Sebring | Mid 2007 |
| Dodge Avenger | Third quarter |
| Chrysler Sebring Convertible | Last quarter |
| Chrysler Voyager | Late 2007/early 2008 |
| Dodge Hornet | Late 2008/early 2009 |
| Dodge Demon | 2009 |
Read more:
First drive: Compass treads new ground for JeepFirst drive: Dodge has modest aims for Caliber hatch
Nitro rocks Melbourne
Sebring hits Melbourne
First look: Dodge Demon chases MX-5
First look: Avenger spreads Dodge’s wings
First look: Dodge reveals Hornet
Read Chrysler car reviews