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August 8, 2007
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
Chrysler sells and services vehicles in more than 125 countries around the world, and Chrysler sales outside North America currently account for approximately 8 percent 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 1,600 sales outlets in key established and growth markets.
August 6, 2007