06/10/2009
Car Parts unit to help group revival
|
|
|
Chrysler's Mopar car parts and accessories business is set to play a prominent role in Fiat's strategy to revive the Detroit-based carmaker. Since gaining control of Chrysler in early June, Fiat management has made consistent attempts to raise Mopar's profile to put it on a par with theChrysler, Dodge and Jeep brands. Sergio Marchionne, Fiat's chief executive, will underline Mopar's importance when he unveils his five-year strategy for Chrysler, probably in the third week of November, according to a person familiar with the Italian carmaker's plans. Mopar distributes 280,000 Chrysler, Jeep and Dodge parts and accessories in more than 90 countries, and is one of Chrysler's few profitable businesses. Chrysler said in its September US sales release last week that Mopar sales were about the same as the previous month, even though its car and truck sales shrank by a third. Dennis Virag, president of Michigan-based Automotive Consulting Group, said that Mopar "has excellent brand image, and they do an excellent job in supporting both the dealer network and customers". Mr Virag pointed to Fiat's Alfa-Romeo, Ferrari and Maserati brands as examples of how accessories, from special wheels to floor mats, can bolster a carmaker's profits from its vehicles.
|
|
|
|
13/10/2009
Car Parts unit to help group revival
|
|
|
Chrysler's Mopar car parts and accessories business is set to play a prominent role in Fiat's strategy to revive the Detroit-based carmaker. Since gaining control of Chrysler in early June, Fiat management has made consistent attempts to raise Mopar's profile to put it on a par with theChrysler, Dodge and Jeep brands. Sergio Marchionne, Fiat's chief executive, will underline Mopar's importance when he unveils his five-year strategy for Chrysler, probably in the third week of November, according to a person familiar with the Italian carmaker's plans. Mopar distributes 280,000 Chrysler, Jeep and Dodge parts and accessories in more than 90 countries, and is one of Chrysler's few profitable businesses. Chrysler said in its September US sales release last week that Mopar sales were about the same as the previous month, even though its car and truck sales shrank by a third. Dennis Virag, president of Michigan-based Automotive Consulting Group, said that Mopar "has excellent brand image, and they do an excellent job in supporting both the dealer network and customers". Mr Virag pointed to Fiat's Alfa-Romeo, Ferrari and Maserati brands as examples of how accessories, from special wheels to floor mats, can bolster a carmaker's profits from its vehicles. "People spend tens of thousands of dollars upgrading the base Ferrari," he said. Furthermore, profit margins on parts are typically much higher than on the vehicle. "Not only are you helping the dealers but you're helping the corporate bottom line," Mr Virag added. In a sign that Fiat may be planning to broaden Mopar's horizons, the parts division was allocated its own stand at the Frankfurt motor show last month. Others include roof-mounted bike and canoe carriers, iPod connection devices and a rear-seat video system. Chrysler originally devised the name, an abbreviation of "motor parts", for a line of anti-freeze products in 1937.
|
|
|
|
|