F&I Management & Training

Chrysler's new UK boss has put a hold on dealer recruitment as the brand moves to turnaround a business battered by falling sales.

September sales were dramatically down for Chrysler, falling 69 per cent with just 467 sales, while Jeep tumbled 61 per cent to 660 units.

Year-to-date sales for both brands were down by around 30 per cent. During the month the fledgling Dodge brand actually outsold Chrysler with 598 registrations.

Federico Goretti, who was appointed managing director in August, said his main priority is to get his 71-strong network back on track after an unsettling period which saw him become the third boss in under 12 months.

"Dealer recruitment is on the back burner. To achieve profitability you need to grow average throughput rather than grow the network," he said.

He has already hosted a dealer conference and met with a number of retailers to try and re-energise the UK operation.

"We have some good sized dealers and need to increase their average throughput. We need to get closer to an average of 400 sales per site; we're currently on about 200," he said.

"It's important for our dealers to look at their cost structure and rationalise whatever they can. Their fixed costs are around 7 per cent; if they could get that down to 6.5 per cent that would help," he said.

He also confirmed the brand has no interest in opening its own sites.

"Carmakers should not get involved in retailing. We need to concentrate on developing new cars and technologies and retailing should be left to the professionals," he said.

"There is some nervousness as there has been a lack of continuity and these changes have not been positive.

"I'm optimistic but the next 12-18 months will be tough especially when you consider global events. My approach to dealers is to understand their problems and assure them that I'm rolling up my sleeves and working hard," he said.

DATED: 27.10.08

FEED: MT