As US slumps, Chrysler looks abroad

Avenger's debut in Paris showscases Dodge's export push

Bradford Wernle | | Automotive News Europe / DETROIT -- As Chrysler group's sales in the US fall, the brand is looking to Europe for a boost.

The group's muscle brand -- Dodge -- is leading the push to boost sales outside North America.

Chrysler's international operations have been profitable since 2004, says Thomas Hausch, Chrysler group executive director of international sales and marketing.

The group, which includes the Chrysler, Dodge and Jeeps brands, sold 129,294 units outside North America through August this year -- only 7.1 percent of its 1.82 million global total. But with the DaimlerChysler subsidiary's US business losing money because of the decline in sales of SUVs and trucks, it's increasingly important to Chrysler group that its brands are profitable overseas.

The Chrysler group's 1,900 dealers outside North America have sold 15,165 Dodges through August, more than double last year. The company forecasts that Dodge will account for 15 percent of the group's international sales by the end of this year.

Uphill battle

"With Dodge, we're able to come to the market in a price segment where we never could compete before," Hausch says. Jeep and Chrysler are seen as premium or near-premium brands in Europe.

In Europe and Latin America, Dodge offers the Caliber lower-medium hatchback and Viper sports car and will sell the Nitro medium SUV and Avenger upper-medium sedan. Dodge debuted an Avenger concept at the Paris auto show last week.

Dodge officials declined to say when the Avenger will go on sale. The Avenger shares a platform with the Chrysler Sebring, which also is destined for Europe and other markets.

US brands face an uphill battle to establish credibility in Europe. But John Lawson, auto analyst for Citigroup in London, says he believes the Chrysler group may have found the right formula for success, at least on a modest level.

"There is a class of consumer to whom the American lifestyle and this sort of encapsulation of it by Dodge truly does appeal," he says. "I'm quite upbeat about that part of the business. They're not being overambitious about it."

Although the Caliber has been a hit in foreign markets, Lawson says the Avenger might be a tougher sell.

"The three-box sedan is a much more heavily defended part of the automotive territory," he says. "It's very tough to break in with a sedan."

Jeep gets new diesel

Dodge sold 1,548 Calibers in Europe in July; after seven months last year, the entire brand had sold only 200 vehicles in Europe, according to UK-based market researcher JATO Dynamics.

"Without international sales, we would have altered the business case" for the Caliber, Compass and other cars, Hausch says, and it might not have been possible to get the programs approved.

In overseas markets, Chrysler offers diesels and smaller gasoline engines that are not available in the US.

The Jeep Wrangler and Wrangler Unlimited four-door debuted at the Paris show with a new 2.8-liter diesel made by VM Motori of Italy.

So far this year, 45 percent of all Chrysler group vehicles sold outside North America were diesels, up from 39 percent last year.