Chrysler's California Strategy
New ad campaign, new dealerships and its own regional sales office puts the state in Chrysler's comeback spotlight.
By Claire_Martin May 1, 2012 10:43AM
Chrysler is ramping up its California sales efforts in in a big way. It opened 17 dealerships in the past 20 months, launched a California-themed advertising campaign and established a stand-alone California sales region with a budget on par with its other eight sales regions."You really need to do well in California to have credibility with your products in the rest of the country," Reid Bigland, Chrysler's U.S. sales chief, recently told The Detroit News. "We're looking at California as its own unique market unto itself," he said, noting that the California sales office has the same status internally as Chrysler's Canada and Mexico offices. "We're treating it as a unique country."
The goal is to raise California's retail registrations to the national level of 10 percent, up from its current 6 percent, by February 2013. Even though Chrysler's California sales increased 55 percent in 2011, the automaker is still facing an uphill battle because it has relied on big incentives to lure buyers -- many of whom aren't convinced Chrysler's quality is up to snuff.
"Perceived quality issues are pretty ingrained," Dennis Bulgarelli, director of automotive research at the market research firm Compete, told Automotive News. "Convincing consumers that that is not the case anymore takes some time."
Adding to Chrysler's challenges is the fact that Californians -- particularly in the wealthier coastal regions -- are wedded to their imports. The Toyota Prius, in particular, has a stronghold over parts of the Golden State. Key to Chrysler's comeback both in California and overall will be to focus on small, fuel-efficient vehicles that can compete with the imports. The Fiat 500, a micro car with import flair, has done well for Chrysler, particularly on the West Coast; California is the highest-selling Fiat region in the country. And whether a car such as the new Dodge Dart, built on the Alfa Romeo Giulietta chassis, can succeed in California may forecast its success in other parts of the country.
As Chrysler's Bigland put it, "It's a massive market, and it's also very influential."
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