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Chrysler reveals network expansion and dealer training plans

Chrysler plans to increase its sales network to 70 outlets by the end of 2012 on the back of a product offensive that will see three facelifts and four new models.

Facelifts next year of the Patriot, Grand Voyager and Wrangler will be joined by all new Grand Cherokee and Compass, plus rebadged Lancia models, the Ypsilon and Delta.

By 2012 the network is forecast to grow to 90 dealerships and sales of Chrysler models are expected to top 11,500 units and 4,200 Jeep.

By 2014 the target is a combined total of in excess of 29,000 units, said Nigel Land, Chrysler UK, Jeep and Dodge brand director. The group total for 2010 is expected to be 4,300.

Land also revealed sales of Dodge would end in 2010.

Chrysler UK currently has 48 sales points and 32 authorised repair centres, giving it a 67% sales market coverage. In 2014 this is expected to be between 90 and 95%.

A dealer conference held last week identified four new prospective franchise holders.

Land said 60% of the existing network is profitable, with the top quartile making the “top end” of 3% return on sales.

“Historically Chrysler Jeep has been profitable, but because we’ve been through a process of extensive remodelling of the product in the last 18 months, it has meant a higher than normal volumes going through certain outlets which has affected profitability,” he said.

“Our dealers now know our plan is to not drive for high volumes – and therefore high discounts – because we don’t have the supply.”

At a pre-Christmas press conference, Land also announced a “huge” training plan for the Chrysler network in 2011.

> More details in the January edition of AMe.

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