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Chrysler cuts ownership costs

Chrysler Group is preparing a sales assault for conquest and corporate customers after reducing the average ownership cost of its cars by almost a quarter this year.

The carmaker says savings have been possible due to common parts usage, which has reduced storage needs and improved component reliability. However, it warns that dealer aftersales margins may be reduced, although it expects this to be compensated by increased volume.

Peter Lambert, ChryslerJeep UK managing director, says: “Cost of ownership is an increasingly important consideration for retail and fleet buyers. As we look to increase our market share with a host of exciting new vehicles due to be launched next year, it is important that we look at whole life costs across our range.

“We have been working with our dealer network to look at our retail aftersales pricing strategy and we are now able to pass on significant cost savings to our customers. The aim is to make our vehicles more attractive to potential buyers and to give our dealers a competitive edge to help them retain existing customers.”

The reductions are possible due to improved component quality and increasing commonality of parts across the Chrysler Group range. In the last two years the group’s warranty costs have reduced by 12%.

Lambert adds: “While our dealers may see a reduction in margin on each part or service sold, we expect the volume of aftersales business going through our dealers to increase.

A fall in the cost of ownership will help our dealers conquest customers that have gone elsewhere for their servicing, while bringing new customers to our brands as we add more models to the range next year.

“This is another positive message that we can communicate via our dealers to customers and prospects that our models are more cost effective to maintain and operate.”

Dealers will continue to set their own labour rate.

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