Tuesday, November 28, 2006

Chrysler group will boost lineup, add stores in China

Tom W. LaSorda


Jason Stein | | Automotive News / November 27, 2006 - 1:00 am BEIJING -- The Chrysler group plans to add a mid-sized sedan, a minivan and a Jeep to its lineup in China next year as it aims to gain ground here.

CEO Tom LaSorda said the Chrysler group will build the three vehicles in China. Chrysler planned an announcement on the products this week and would not reveal details about models or plants involved.

The Chrysler group aims to triple its volume and double its dealerships in China over the next three years,

LaSorda said in an interview here during the Beijing auto show. Chrysler will be a key sales driver in the China strategy of parent company DaimlerChrysler AG.

The Chrysler group wants to sell more than 100,000 units here by 2009.

"We will triple our sales in the next few years," LaSorda said. "We need product here, and we will have it."

Chrysler already builds the 300C sedan at a plant near here that is co-owned by Beijing Automotive Industry Holding Corp. The factory also builds the Mercedes E class.

Chrysler's Chinese minivan will be the same product the automaker now produces in North America and Germany, LaSorda said.

"But it will be produced in China for China," he said.

LaSorda also said Chrysler will expand its dealerships to 100 stores by the end of 2007 from 58 today. Chrysler dealerships in China will not be paired with Mercedes stores.

"We need to grow our own retail network quickly," LaSorda said.

Chrysler sold about 25,000 units in China through October, LaSorda said.

It trails market leader General Motors, which sold 616,556 cars and trucks in China in 2005.

Joe Eberhardt, the Chrysler group's executive vice president of global sales, marketing and service, also said Chrysler will expand the marketing budget of the Jeep brand with a new Web site in China.

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