Thursday, April 26, 2007

Dodge may be Chrysler's China winner

Alysha Webb is the China Bureau Chief of Automotive News.


ALYSHA WEBB

Alysha Webb | Automotive News / April 26, 2007 - 1:00 am /



SHANGHAI -- When I think of the Dodge brand, I think of my dad's Dodge Power Wagon pickup. I used to feel so, well, powerful, driving around San Antonio in that pickup back in high school. That was a long time ago, mind you, and the Dodge brand has come a long way since then.

That was brought home by the Dodge launch party I attended before the start of the Shanghai auto show. It was held in one of Shanghai's hot new nightspots, at the top of a riverfront building.

Talking to Bill Russo, the Chrysler VP in charge of northeast Asia, and later with the Chrysler guys in charge of China marketing, I started to think Dodge might just be the most successful Chrysler brand here in China.

The Caravan luxury van is the first Dodge model Chrysler will introduce in China. It faces formidable opposition. GM's GL8 van rules the luxury van segment in China, with Honda's Odyssey in second place. GM has made the back seat of the GL8 a virtual living room, with comfortable seats, DVD players, and the like, to cater to the chauffeured businessmen who are the main buyers.

Russo agreed that GM had done a great job with the GL8. So Chrysler did its homework before bringing the Caravan here. They looked to Taiwan when designing the China Caravan interior, says Russo. One change: doing away with those expensive stow-and-go seats in favor of more comfortable and luxurious rear seats.

Chinese tend to buy local, and the Caravan will be produced under license in the east China province of Fujian, between Shanghai, home of the GL8, and Honda's Guangzhou home. Businesses in Fujian have plenty of money, and likely will go for the Caravan.

The next Dodge model Chinese consumers will see is the Caliber sedan. Imports are due to start next year.

Chrysler will have a marketing challenge on its hands in China. It must make sure it clearly differentiates the Chrysler brand and the Dodge brand. The Chrysler Sebring sedan will be produced in China beginning later this year. It will overlap with the Caliber somewhat.

I caught Chen Xiaoyu, vice secretary general of the China Automotive Dealer Association, sitting in a Dodge Caliber at the Shanghai auto show. He liked the car. "People will buy it," he said. He's the expert.

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