Chrysler Introducing 2 new vehicles to Russian market

[hemiram]

The new Jeep Cherokee (Liberty in the U.S.) and all-new Dodge Journey, the first crossover in the Company’s Dodge model range, were revealed to the media and public at the 2008 Moscow International Motor Show.

According to PricewaterhouseCoopers, in the first half of 2008, the Russian car market grew by 41 percent compared with the same period in 2007, with sales volumes totaling 1,645,000 units.

Sales of Chrysler, Jeep and Dodge vehicles are well ahead of the market. During the first seven months of 2008, total sales of the three brands grew by 71 percent compared with the same period last year, surpassing the figures for the entire calendar year 2007. The Russian market achieved the most significant sales growth in Europe for Chrysler and became the Company’s ninth largest market outside North America. Dodge, with a 112 percent growth in sales so far this year, is the third-fastest growing brand in Russia (for the first seven months of 2008).

One of the reasons behind this success lies in the continued expansion of Chrysler, Jeep and Dodge into Russian regional areas. In the first half of 2008, five new dealerships came into operation. Chrysler Russia has recently established a new retail presence in regions such as Black Earth Region (Voronezh), Bashkortostan (Ufa) and Volga-Vyatka Region (Nizhny Novgorod). A new dealer center also helped reinforce the Company's position in the well-developed market of St. Petersburg, which now boasts three dealers. Chrysler, Jeep and Dodge sales are being conducted in 17 of Russia’s largest regions through the efforts of 22 official dealers.

[squat]

The liberty is about the size of the cherokee.  Why can't they just call it that here in the states too?

[hemiram]

The liberty is about the size of the cherokee.  Why can't they just call it that here in the states too?

Weren't both of those vehicles out at the same time here in the states?  That's about the only reason I can think of.

[speedinstyle]

Sounds like Russia's booming economy is helping chrysler sell a lot more vehicles there.  Go figure, when the economy is good you sell more, when bad you sell less.  I hate that all the news articles harp on the detroit for having lower sales, the foreign guys are too.

[gman]

Russia is experiencing crazy growth because of oil prices. Must be nice to build up on others misfortunes.

[no spoiler]

Russia is experiencing crazy growth because of oil prices. Must be nice to build up on others misfortunes.

We've done our share of that too.  I hope that chrysler can sell a lot of cars in Russia to offset their sales here in the states.  The turn around will take a couple years and they need to at least bottom out for now, if sales keep falling I don't think I'll be able to buy a challenger in the future.

[moparman]

Russia might be a growing market but I bet chrysler share over there is dismal.  Russian might be a growing market but it's still factors of 10 behind the lagging us economy.  It's good that the Russians are growing, but it won't be enough to prop up chrysler sales.

[hemiram]

Russia might be a growing market but I bet chrysler share over there is dismal.  Russian might be a growing market but it's still factors of 10 behind the lagging us economy.  It's good that the Russians are growing, but it won't be enough to prop up chrysler sales.

You would be mostly correct.  Chrysler's share in russia is small, but it's growing.  Having any vehicles sold in a new market means more vehicles sold overall and that makes chrysler more money.

[NitroNanny]

I agree, if chrysler suddenly started selling vehicles in brazil it would be a boon to the company even if it had never sold in that country before.  They don't have to have huge market share for it to be profitable and make sense.  Chrysler needs international sales to make their brand more recognized and stable.  Everyone has to start out somewhere.

[raman noodles]

You guys should be thinking in terms of the global market.  Chrysler's share of that is dismal.  But every new country they add to their sales chart increases that.

[moparman]

I agree, if chrysler suddenly started selling vehicles in brazil it would be a boon to the company even if it had never sold in that country before.  They don't have to have huge market share for it to be profitable and make sense.  Chrysler needs international sales to make their brand more recognized and stable.  Everyone has to start out somewhere.

Yeah but it costs money to bring the product over there.  If they can't get enough market share then it'll cost them money to sell vehicles instead of make them money.