Chrysler Seeking To Bolster Russian Sales

The Dodge Journey and the Jeep Cherokee are two vehicles being featured at this year's Moscow International Motor Show, a market where Chrysler is experiencing explosive growth.

Looking For Success Behind The US

Chrysler’s position internationally has been diminished significantly since the company’s much publicized divorce from Daimler in 2007. For nearly ten years, the company could depend on Mercedes to helping raise the visibility of its Chrysler, Dodge, and Jeep brands or at least provide the backing that the company needed in order to expand its European presence.

A small time player internationally, Chrysler LLC has suffered more than Ford and General Motors during the current economic downturn as its American competitors are well represented overseas. For Chrysler, the company’s business is 90% North American, which has been a disastrous mix for the automaker in a sour economy.

On Display In Moscow

One bright spot for Chrysler is Russia where the automaker is seeing sales increase at rates much higher than the rest of Europe. All three brands are represented in the former Soviet republic and Chrysler is now the third fastest growing brand in that country.

Coinciding with the 2008 Moscow International Motor Show which starts tomorrow and runs through Monday, Chrysler will be introducing two new models to that market — its Dodge Journey crossover and the Jeep Cherokee.

“Although sales in Russia are growing significantly, Russians are in fact only now starting to discover Chrysler vehicles. Let me remind you that Dodge brand was officially introduced in Russia as recently as two years ago here at the Moscow Motor Show,” says John Stech, CEO – Chrysler Russia. “Now, every second car sold by us in Russia is a Dodge and I am sure that the new cars presented here in Moscow will contribute even further to Russians’ interest in our brands.”

Jeep’s Universal Appeal

The Jeep Cherokee is expected to be well received, it having a history in Russia that spans its near 65 year history as the name for an entire segment of vehicles. Like in the US, where most SUVs at one time were all considered “jeeps” whether built by Jeep or not, the same can be said for Russia.

The Dodge Journey is expected to appeal to Russian families who customarily only have one vehicle per household. The Journey serves multiple purposes not the least being that it can seat up to six people or four with extra storage when the third row seat is folded down. Chrysler believes that the vehicle’s minivan attributes and passenger car efficiency will appeal to a Russian audience.

Chrysler Gaining Strength In Canada

US auto sales for Chrysler dropped by 35.9% for June 2008, a historic pummeling felt across the company’s three product lines. Neither truck, SUV, or car were spared; Chrysler’s losses for the first half of the year translates into a 22% drop in sales.

North of the border things are quite different for the smallest of the Big Three automakers, with Chrysler Canada registering its 23rd consecutive month of year-over-year sales increases. Though sales were only up 1% for the month, Chrysler gained a full point in market share in Canada, in an economy that isn’t feeling the sting of the housing crunch now whacking America.

The Dodge Ram, which is losing sales left and right in the US, now has 22% of the full-size pickup segment in Canada, a record high June share of that segment. To date, Dodge Ram pickup truck sales are up 3% for the year in a segment that is down 12%. It doesn’t hurt that the truck is heavily discounted with July savings of up to $10,500 per truck, plus free gas for six months.

The Dodge Journey, new for 2008, continues to hold onto the top position as the best-selling crossover vehicle in Canada, up 25% over last month. “The Dodge Journey is ideally suited to the Canadian marketplace,” said Reid Bigland. “With seven-passenger seating, a price point of under $20,000 and fuel economy of up to 36 mpg, there is no wonder it has become Canada’s No. 1-selling crossover.”

“Take a Free Ride into 2009” is Chrysler Canada’s newest innovative incentive program. During the month of July, Chrysler Canada will pay customers’ gas charges for six months on all 2008 vehicles (excluding Dodge Viper, Challenger, and Sprinter), as well as offer cash discounts of up to $10,500 on selected vehicles.

So, while Chrysler is getting beaten up at home its share of the Canadian market continues to grow with deep discounts on Jeep, Dodge, and Chrysler vehicles helping that trend.

(Source: Chrysler LLC)