Chrysler seeks partnership
The automaker sold 238,218 vehicles overseas in 2007, up 15% from 2006. In the United States, Chrysler sold about 2.1 million vehicles.
To realign itself as a global business, the Auburn Hills automaker is trying to add dealers in Russia and South America while pursuing partners in Asia.
"To me, success is making sure that we continue to put the right foundations into our business. In some markets it will take longer for us to grow just because of the very nature of the market," Mike Manley, a Chrysler executive vice president in charge of international sales and business development, told the Free Press Monday during the North American International Auto Show in Detroit.
This year alone, Manley said, he wants to double the number of Chrysler dealers in Russia. "We need to increase our dealers in Russia certainly over the next 12 to 24 months," Manley said.
The company currently has about 23 dealers, one of which recently opened a $23-million facility in Moscow, he said.
But it's not just Russia where Manley and other Chrysler executives are pushing.
"To some extent, China is more complicated because it's today an absolute requirement … to have product localized and obviously there is a process to get that done and it's very complicated," Manley said. "But in terms of Russia, you can still import product and you can still take advantage of the growing market, but you certainly do want to be localized in, let's say, the near or to long-term future because localization will drive some of the cost competitiveness in the region."
At this point, Chrysler seems to be creating a mosaic of partnerships to help build its global business.
The recently announced deal with Nissan Motor Co., for the Japanese company to make a small car for Chrysler to sell in Brazil and possibly elsewhere in Latin American beginning in 2009, helps Chrysler in its efforts to expand its dealership network in South America, Manley said.
"The biggest challenge for me in Latin America is building the dealer network," he said. "Part of that is to make sure we can continue to fuel our growth. I've got to be able to offer our dealers a good business plan. I've now got one more product that's very relevant to them that I can offer to them as long as they make the right investment in our franchise."
The automaker also has a deal with Chery Automobile Co. for the Chinese company to make small cars for Chrysler to sell in various regions around the world.
One of the reasons given for the Chrysler-Daimler merger nearly 10 years ago was to help Chrysler become more global. Though some say newly independent Chrysler needs a major partner, executives indicate that's not their plan.
"I am not spending any time on something bigger than project-by-project," Tom LaSorda, a Chrysler president and vice chairman who is responsible for developing global partnerships, said Monday. Detroit Free Press
01/05/08 Chrysler LLC, which is searching for partners to help give the Auburn Hills automaker a more global reach, is reportedly in talks with Indian automaker Mahindra & Mahindra Ltd. over some sort of partnership. Chrysler wants to tap the Indian company's engineering expertise to develop products for emerging markets, the Economic Times in India reported today, citing an unnamed industry source. Mahindra was reportedly in the bidding to purchase the Britain-based Jaguar and Land Rover brands from Ford Motor Co. Friday's report said the potential Chrysler and Mahindra deal could include an equity stake.
A spokeswoman for Mahindra could not be reached for comment, and a Chrysler spokeswoman was unable to comment Friday. Chrysler prepared Thursday for more global alliances, appointing Simon Boag executive vice president for global alliance operations. "As outlined in the company's recovery and transformation plan, growth in markets outside of North America is critical to the success of Chrysler," President and Vice Chairman Tom LaSorda said in a statement. "We are looking for new alliances and growth opportunities all over the world." LaSorda signed a partnership with Chinese automaker Chery Automobile Co. last year to sell small cars under the Chrysler, Dodge or Jeep brand names.
An executive at Gaz, a Russian automaker, told the Financial Times in London last month that his company was talking with Chrysler. Detroit Free Press