F&I Management & Training

Chrysler is relaunching its three brands in the UK as it moves to reverse falling sales, poor dealer profitability and recruit new partners. UK managing director Simon Elliot, who returned to the job in November after two years running the carmaker’s Chinese operation, has streamlined the Chrysler and Jeep product ranges in a move which he believes will take stock holding pressure off dealers and improve their profitability.

“We currently have 21 models across three brands and I would like to see that dramatically reduced over the next 12 months,” said Elliott.

“If we manage our portfolio properly then our RVs will move in the right direction and dealers can reduce stocking and improve profitability.”
Elliott said dealers would no longer be expected to stock hard and soft top versions of both the PT Cruiser and Crossfire, which are now on run-out and are not due to be directly replaced.
He is also encouraging dealers to only stock cars they know will sell in their region rather than accommodate the entire line-up in their showrooms.
Last year saw Chrysler sales drop 21 per cent to 9,131 and Jeep sales fall by 9 per cent to 6,148.

While the fledgling Dodge brand, sold through all its dealers, rose by 51 per cent to 3,273. Elliot said sales this year had been reforecasted and would be static - but he expects growth in 2009.
The brand, which demerged from Daimler at the end of 2007, currently has 83 dealerships and Elliott said this number is not expected to change but new dealers would be recruited to replace those who leave the franchise.
“We’re having grown-up conversations with our dealers. A small number lost their appetite for us in 2007 as they lost unacceptable levels of money and they don’t want to continue with us.
“On the other hand some made good profits and want to expand and some of our newer partners are looking at taking on a second site,” he said.

DATED: 31.03.08

FEED: MT