CHRYSLER’S AD RE-BOUND

9/2/2011

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US auto giant Chrysler is set for a fresh marketing push in order to connect with its consumers and dealers. During the financial crisis, the financial condition of the Detroit based company had gone from bad to worse and the company had to finally file for bankruptcy with the US Federal Bankruptcy court. After restructuring of the US auto giant, a new entity was formed in which Fiat owns a 20% stake. So the financial mess of the company was taken care of but by this time a lot of damage had been done to the image of the company. Now the new entity under CEO Sergio Marchionne wants to change its image by a fresh marketing initiative. A new advertising campaign promoting the redesigned Jeep Grand Cherokee, which is the first all new vehicle from the entity will start being screend from the end of June 2010, followed by a meeting of its dealers in which the company will showcase its redesigned models, which will be launched in this year or early next year. This move by Chrysler is quite similar to what General Motors did when they came out with a campaign in which GM chief executive Edward E. Whitcare Jr. talked about his confidence in the re-organised General Motors post bankruptcy filing and reorganization. Some decades back, Lee Iacocca got Chrysler back from the brink and into profits. For CEO Marchionne, comparisons with the legend are inevitable.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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6 Comments
 


pratik kumar link
11/08/2011 4:01am

Chrysler Group's amazing rebound, driven by its crash creation of new and refreshed models and a good start for the Fiat brand's 500, continues with sales up 30% to 120,394 in June -- the best June since the month in pre-bankruptcy and pre-recession 2007.

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kk
11/08/2011 4:02am

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raghuveer singh negi link
11/08/2011 4:04am

The laggard was the Chrysler brand, down 8% vs. a year ago, despite another stellar month for the redone and renamed 200, with sales up 82% over the old sedan formerly known as Sebring. But that was not enough to offset a 29% drop in Town & Country minivan sales. The new 2011 300, with its late start this spring, remained in short supply.

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arvind kumar link
11/08/2011 4:05am

Jeep's 74% gain topped all Chrysler Group brands. All the Jeeps had double-digit gains, led (and we're not kidding here) by the redone 2011 Jeep Compass, up 278%. The quirky Compass' gain beat (by percentage anyway) the all-new Grand Cherokee (up 208%).

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ankhus kumar link
11/08/2011 4:16am

TD Bank announced it will buy Chrysler Financial, the automaker's lending arm, from private equity firm Cerberus Capital. Cerberus bought Chrysler from Daimler (DCX) back in 2007 (not such a good move), but this morning it is getting most of its investment back. TD is said to be paying Cerberus $6.3 billion, which compares to the $7.4 billion paid back in 2007 by Cerberus.

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vandana Saxena link
11/08/2011 4:20am

The Company (as of October 31) had more than $21.7 billion of cash and interest bearing deposits from banks, and even an ROI of 5% will yield significant cash flow growth, not to mention the potential to grow into other arenas. The Company has $270.0 billion of loans on its balance sheet and TD is also one of three options in Canada to finance a vehicle purchase. Chrysler had a smaller portion of the Canadian market, and compared to the second quarter of 2010, the Canadian auto market as a whole declined slightly.

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