Trouble in Paradise?

[HEMEEE]

Chrysler shakes up marketing team

Wednesday, June 14, 2006
By Neal E. Boudette, The Wall Street Journal

DETROIT -- Chrysler's hemi-powered turnaround suddenly looks like it's running on fumes.

In a surprise move Tuesday, DaimlerChrysler AG's Chrysler Group unit shook up its top sales and marketing management, amid a rocky start to 2006 that has left the German-American auto maker's U.S. unit with hefty inventories of unsold vehicles despite rising sales to rental fleets and big discounts. In May, Chrysler's sales skidded 8.4 percent and are down 2.5 percent through the first five months of the year.

Out are Gary E. Dilts, 56, senior vice president U.S. sales, and Raymond M. Fisher, 53, vice president sales, service and parts operations. The two executives will retire effective July 1, Chrysler said.

The company said Steven J. Landry, 47, currently president and chief executive officer of Chrysler Canada, will become vice president of sales and field operations. Mr. Landry had been in the Canadian job only a few months.
Michael Manley, 42, was named vice president for sales strategy and dealer operations, Chrysler said in a statement. Both will report to Joe Eberhardt, the executive vice president for global sales, marketing and service.
A year ago, Chrysler was Detroit's only hot car company, gaining market share and making money while its larger rivals foundered. Chrysler seemed to have hit a formula for success: Offer boldly designed cars and trucks, such as the Chrysler 300 C, greenlight cheeky, sometimes borderline bawdy advertising and promote heavily what rival Japanese and Europeans didn't offer, namely a big, beefy V-8 engine nicknamed "Hemi," a name redolent of the days when Detroit iron ruled the streets.

But this year, Chrysler has hit an air pocket, presenting a major challenge for Tom LaSorda, the manufacturing expert who was given the top post at Chrysler last September after Dieter Zetsche, leader of Chrysler's dramatic post-2001 turnaround, took over the parent company. Chrysler's woes carry risks for Mr. Zetsche, too. He needs Chrysler to stay profitable while he focuses on fixing problems at DaimlerChrysler's luxury Mercedes-Benz unit. And Mr. Zetsche's reputation as a turnaround leader could get tarnished if Chrysler bogs down so soon after he leaves.

Another sign of trouble for the company: in the first four months of the year, Chrysler's sales have been buoyed by heavy sales to rental fleets. For some models such as the Dodge Stratus sedan and Dodge Caravan minivan, about half of the vehicles sold went to rental fleets.

Rising gas prices have caused sales of its Dodge Ram trucks and sport-utility vehicles to stall. A new Jeep model, the seven-passenger Commander, has fallen short of expectations, and now inventory has piled up.

Perhaps most worrying, sales of Hemi-powered cars have slackened. Last year's hit, the Hemi-equipped Chrysler 300C sedan, is now sitting on dealer lots for an average of almost three months -- about a third longer than the industry average, according to the Power Information Network, a market researcher which collects detailed sales data from dealerships. "Inventory is growing. They're piling up," said the Power Information Network's Tom Libby.
With gas prices around $3 a gallon, fewer customers are opting for the eight-cylinder Hemi, he added. For Chrysler that could have an impact on the bottom line since the engine typically adds about $5,000 to a car's purchase price.

In an interview, Mr. LaSorda said he is counting on a new marketing-and-advertising campaign to sharpen Chrysler's image while also highlighting a new round of deals coming to pump up sales this summer.

Mr. Lasorda declined to elaborate on the campaign, which will be launched in the next few weeks, but acknowledged it will include a repositioning of the company's Hemi V8 engine.

Until now, Chrysler had promoted the engine's power. But with the spectre of $3-a-gallon gas, the company now plans to emphasize the Hemi's ability to shut off four cylinders while cruising, the better to save gas.
"We haven't been telling people you can get 27, 28 miles a gallon with this thing," Mr. LaSorda said.

The success of this effort is crucial to regaining momentum. While the campaign is designed to shore up Chrysler long term, Mr. LaSorda said the key is sustaining sales during the next three to four months while the company awaits the arrival of several new models.

Among them are several that offer improved fuel economy, such at the Jeep Compass and Jeep Patriot, both compact SUVs that will be available with a new, fuel-efficient four-cylinder engine.

Perhaps the key model is the completely redesigned Chrysler Sebring, a midsized sedan that has to compete with two of the industry's megasellers, Toyota Motor Corp.'s Camry and Honda Motor Co.'s Accord as well as Ford Motor Co.'s Fusion.

Mr. LaSorda is counting on the car's looks to pull customers from the Japanese brands. It also features updated engines and an advanced six-speed transmission -- components that Ford and General Motors Corp. left out in some of their recent passenger cars.

Industry analysts cautioned that the Sebring faces an uphill task. "For these guys to get people out of Camrys and Accords, you have to knock them out. The car has to be exceptional," said Jim Sanfilippo, executive vice president at Automotive Marketing Consultants Inc. in Bloomfield Hills, Mich.

[HEMEEE]

Regarding the last comments about capturing Japanese brand loyalists, when will they wise up and realize it's not just the car that must be exceptional, it's the entire ownership experience, most importantly service!

[bruno]

Originally Posted by HEMEEE

Regarding the last comments about capturing Japanese brand loyalists, when will they wise up and realize it's not just the car that must be exceptional, it's the entire ownership experience, most importantly service!

HEMEEE,

You are absolutely correct with your keen observation. Having been a loyal Japanese vehicle owner for years, I can definitely make comparisons regarding ownership experience and customer service. Chrysler doesn’t even come close to my previous experiences with Toyota.

Many sharp, educated, intuitive owners from cars forums such as this one often come prepared with more information than service advisors/technicians are even aware of. Yet, I have read here of many instances where our LX owners have been disrespected or questioned on the source of their knowledge base.

As long as they play the game of supply and demand, the dealers deserve to have their primo cars sitting useless on car lots, racking up inventory tax. To not let qualified buyers even test drive their precious 300cSRT is ludicrous.

Chrysler should be credited for designing beautiful vehicles outside the box but deserves to be slammed for disregarding their loyal, potential life-long customers.

Okay, I’m off my soap box…
bruno

[Rambit]

Originally Posted by bruno

Okay, I’m off my soap box…
bruno

Bruno, what's with all this soap stuff lately. First you wanna kill danno and me by making us drink it to cleanse our soles and filthy corrupted X-Rated minds. Now you gotta add insult to injury by standing on the empty box.

Hey and the last I heard is you can test drive an SRT8 in most places. Also not all dealerships are as you describe. I get treated pretty well at my dealership, even long before I bought my car. That's why I gave them 10's across the board in my J.D. Power & Associates survey.

Rambit

[srt8danno]

Originally Posted by Rambit

Bruno, what's with all this soap stuff lately. First you wanna kill danno and me by making us drink it to cleanse our soles and filthy corrupted X-Rated minds. Now you gotta add insult to injury by standing on the empty box.


Rambit

Yeah, what he said!!

Since it took me 330 days to receive my beloved SRT8 with a 5 Star Dealership I have to ask how they can disrespect some of their dealerships who do give great service, but then allow a non 5 Star Dealer first dibs on SRT8’s so they can jack their prices up. That kind of stuff will bite you in the arse sooner or later.

[II kings 9:20]

They just don't get it, assuming they nail the new Sebring, the ownership experience as you state Linda is crucial. Think about it, who doesn't make a good/great car these days. They better watch Hyundai and Kia. You heard it here first, the Chinese will make crap cars for about 10 years and then blow everyone away just as the Koreans are beginning to do. Have you heard about the RWD V8 Lexus beater from Hyundai?

[bruno]

Originally Posted by Rambit

Bruno, what's with all this soap stuff lately. First you wanna kill danno and me by making us drink it to cleanse our soles and filthy corrupted X-Rated minds. Now you gotta add insult to injury by standing on the empty box.

Hey and the last I heard is you can test drive an SRT8 in most places. Also not all dealerships are as you describe. I get treated pretty well at my dealership, even long before I bought my car. That's why I gave them 10's across the board in my J.D. Power & Associates survey.

Rambit
I'm going to ignore your soapbox comments.

I never said ALL dealerships in my comments. However, you know there are many posts where members have voiced their concerns and remarks over how they were treated, including not being allowed to test drive an SRT-8. I'm glad your dealership is outstanding and worthy of all 10's, as all dealerships should be or strive to be.

danno,
What are you?? Rambit's conjoined twin?? I believe it's time for both of you harass someone else!

[Rambit]

Originally Posted by bruno

danno,
What are you?? Rambit's conjoined twin?? I believe it's time for both of you harass someone else!

Humm...coming from the lips of the one who's been following us for 2 days now leaving a trail of bubbles from the Purity Police...humm.

Rambit

[GoofyTimL]

Hey! That's my deputy bruno... you leave my deputy alone, or yous gonna haveta deal with the Goofydude... would ya rather that lather?! Would ya?

































j/k

[bruno]

Originally Posted by GoofyTimL

Hey! That's my deputy bruno... you leave my deputy alone, or yous gonna haveta deal with the Goofydude... would ya rather that lather?! Would ya?

Thanks GoofyTimL! These two are out of control with sicko minds and behavior. The harassment continues by them although they have a slick way of twisting it all around. I appreciate your support.

Deputy bruno