Chrysler on the rise

CHRYSLER and Fiat chief executive Sergio Marchionne has unveiled detailed plans designed to boost sales of the Chrysler and Jeep brands across the globe, with Australia set to benefit from new vehicles and model lines.

The plans were revealed as Chrysler Group LLC, which has slashed costs under Fiat control, announced that it had recorded a $US143 million ($A154m) operating profit for the first quarter of 2010 after emerging from bankruptcy in June last year.

Revenue rose to $US9.69 billion ($10.43b) for the quarter, up 2.7 per cent on the final three months of 2009, and while the net result for Q1 was a $US197 million loss (-$A212m), it represents a massive improvement on the $US2.69 billion ($A2.9b) net loss it recorded in the ’09 final quarter.

Global sales were 334,000 for the first quarter, up from 318,000 in Q4 2009.

Mr Marchionne described the result as “tangible evidence that we are achieving the targets that we set for ourselves”.

From top: Dodge Viper SRT10, Dodge Caliber and Chrysler 200C EV concept.



“Our first-quarter results show we are generating the cash needed to build our brands and invest in products, such as the 16 all-new or refreshed vehicles that will be introduced by the end of this year, representing 75 per cent of our product line,” he said.

“While we still have a long way to go to rebuild our business, it is important to note that we are on track to achieve our 2010 targets.”

Fiat also recorded a net loss for the quarter – €25 million ($A36m) – although it has forecast a “trading profit” of €1.2 billion ($A1.7b) for the full year.

Presenting the new product plan this week, Mr Marchionne said Fiat and Chrysler would combine to produce around six million vehicles a year by 2014, and that under a new Fiat Group Automobiles (FGA) banner it was aiming to increase passenger car and light commercial sales from 2.2 million in 2009 to 3.8 million in 2014.

Fiat/Abarth will be responsible for the most of these (2.7 million), with Alfa Romeo contributing 500,000 sales, Chrysler/Lancia 300,000 and Jeep 100,000, with a further 200,000 units from contract manufacturing.

FGA does not include Fiat-owned Ferrari or Maserati, or the Dodge brand, which Mr Marchionne said was “being maintained as an American performance brand” with models to be sold outside the US restricted to high-performance sportscars such as the Challenger, Charger and Viper.

That said, Chrysler Australia continues to advise that a broad range of Dodge models – which currently includes Avenger, Caliber, Nitro and Journey – will remain on sale in Australia for the foreseeable future.

“We’re still focused on each of the brands – Chrysler, Jeep and Dodge,” said Chrysler Australia spokesman Jerry Stamoulis. “Regardless of what brand or vehicle it is, there is an emphasis placed on (what is best for) our market rather than a region or a global strategy.”

Under the combined Chrysler/Lancia product plan unveiled this week, Chrysler will launch its new 300C large sedan and a Europe-oriented Grand Voyager people-mover next year, with a new C-segment small-car family – including hatchback, sedan and station wagon derivatives – following in 2012.

The latter will be produced by Chrysler, rather than Fiat/Lancia, and should be a prime candidate for release in Australia.

A new medium-sized sedan dubbed the 200C and aimed primarily at the US will be launched in 2013, the same year that a large D-segment crossover wagon is introduced for international consumption.

A new Fiat-produced Ypsilon compact car is due for release in 2011, and will receive a further upgrade in 2014. This is significant, considering Mr Marchionne revealed to GoAuto in January that Australia would receive Lancia models branded as Chryslers under the new strategy.

Asked if Lancia cars would be sold as Chryslers in Australia, Mr Marchionne said: “As Chryslers? Yes, you will. Fear not, you will. To the extent that Lancia is not active, not present in any given jurisdiction, Chrysler will be with a combined offering of Lancia and Chrysler.” The current Lancia Musa and Delta compact cars will be phased out in late 2012 and 2013 respectively, making way for the new C-segment small family.

A new-generation Grand Voyager is also due to be launched in 2014.

Mr Stamoulis said this week that the full Australian model program was still to be confirmed, although the new 300C is a certain starter for 2012. The company is also upbeat about the prospects of potential new models, such as the 200C.

Meanwhile, Jeep will launch a new Grand Cherokee later this year (January 2011 in Australia), with upgraded versions of the Wrangler, Patriot and Compass also landing on the world stage next year.

While Wrangler will continue indefinitely, Patriot will be discontinued early in 2013, when an all-new compact SUV will be introduced. The current Cherokee will also give way to a redesigned model in 2013.

“From a local perspective, we’re certainly happy to see the results are looking positive,” Mr Stamoulis said. “It’s good news.”