the new chrysler moves forward as independent company
Chrysler announced that the sale of the majority interest in the Chrysler Group to an affiliate of Cerberus Capital Management, L.P. has been completed, creating Chrysler LLC, or “The New Chrysler” – the first major North American automotive manufacturer in more than a half century to be privately owned.
On May 14, 2007, DaimlerChrysler AG announced that an affiliate of Cerberus would acquire an 80.1% equity interest in the holding company of what is now legally known as Chrysler LLC. DaimlerChrysler AG, which will be renamed “Daimler AG” pending shareholder approval in the fall, will retain the remaining 19.9% interest. As previously stated, joint projects between the two companies will continue.
“First Day” Activities
The New Chrysler celebrated its “First Day” on Monday, August 6, at its Auburn Hills, Michigan world headquarters building and at facilities around the world. The company will continue to roll out the launch of “The New Chrysler” throughout the year. The Pentastar logo will also return as the company’s corporate mark in an updated form, and was unveiled on Monday.
Chrysler Continues Its International Expansion
Chrysler’s international operations had their most profitable year ever in 2006, and the growth continues. Chrysler set a new record in June 2007 with 22,901 units sold outside North America, an increase of 21% over June 2006. This was the highest sales month ever in Chrysler International's history. The high sales results contributed to another record: an unprecedented 25 consecutive months of year-over-year monthly sales increases. Through the second quarter, sales outside North America were up 17%, when compared with the same time period last year, and have topped 114,000 units. Additionally, an all-time record was set as 23,523 vehicles were exported from North America to support this growth. “Our unprecedented sales success does nothing but reinforce our commitment to work harder to continue attracting and satisfying our customers in all our international markets,” said Michael Manley, Executive Vice President – International Sales, Marketing and Business Development, Chrysler. “Our international growth is a cornerstone of our long-term strategy, and we are not planning to slow down anytime soon. This year you will see even more from the Chrysler, Jeep® and Dodge brands in our international markets.”
By the end of 2007, Chrysler will have launched a record eight new vehicles outside North America and will have more vehicles available in key markets than ever before, doubling from 9 vehicles in 2003 to 20 or more. Moving forward, Chrysler is committed to identifying opportunities that support continued growth of the product portfolio. These new opportunities will allow the Company to compete in new vehicle segments, as well as reach new customers that had not been able to consider Chrysler, Jeep or Dodge brand vehicles in the past. Global Business Opportunities are Key Part of Transformation Chrysler is actively implementing its Recovery and Transformation Plan, which seeks a return to profitability by 2008 while also taking steps to change its business model for the long run. Key parts of the Transformation will be a greater global footprint and a shift in the product mix to smaller, more fuel-efficient vehicles. Chrysler’s global strategy builds on the Company’s historic strengths, including the ability to respond rapidly and creatively to emerging opportunities. Forging strategic alliances is a cornerstone of the strategy. Some key examples of the initiatives already put in place include:
• An agreement with China’s Chery Automobile Co. to produce small and subcompact cars that Chrysler will market in North America, Europe and possibly other global markets
• A signed Memorandum of Understanding with China Motor Corp. (CMC) to export a cargo van to Mexico. CMC will produce this 1000kg panel/cargo van at its assembly facility in Yangmei, Taiwan, and the vehicle will be exported to the Mexican market where it will be sold as a Dodge vehicle
• The plan to produce a Chinese-market minivan via license with CMC and Fujian Motor Group in Fuzhou, China. CMC currently produces the Chrysler Town and Country minivan in Taiwan, via license, for the Taiwan market.
• Production of the new Chrysler Sebring sedan for the China market scheduled to begin later this year in Beijing at Beijing-Benz DaimlerChrysler Automotive Co. (BBDC). BBDC, which also builds the Chrysler 300C for China, is a joint venture between the Beijing Automotive Industry Holding Co. Ltd. and DaimlerChrysler
• A licensing agreement that allows Russian automaker GAZ to build the previous-generation Chrysler Sebring and Dodge Stratus sedans for sale in Russia under the GAZ brand. Engines for the sedans and other vehicles being built by GAZ will be supplied by the Chrysler plant in Saltillo, Mexico
“When you look at the global nature of the competitive scene, international initiatives will be critical to Chrysler Group’s success in the years ahead,” said Chrysler President and CEO Tom LaSorda. “We have a solid plan for sustainable, profitable international growth, and the results so far provide a clear sign that the strategy is working. In the next five-year period, a plan to double where we are today outside North America would be reasonable.” Chrysler sells and services vehicles in more than 125 countries around the world, and Chrysler sales outside North America currently account for approximately 8% of the Company’s total global sales. Vehicles range across all three brands, with limited availability on some trucks and SUV models. As Chrysler continues to increase sales and expand operations in markets outside North America, the Company plans to add to its existing 1,400 sales outlets in key established and growth markets.
