Chrysler Group on a roll |
| Monday, 12 March 2007 | |
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The group's former van sales and marketing director took the helm just as the Chrysler, Jeep and Dodge brands were embarking on an unprecedented product offensive, which has driven up sales and initiated an ongoing beefing up of the dealer network. Traditionally a niche player, the car maker has set a benchmark by breaking through the 1 per cent market share barrier and is laying the foundations to build a stronger presence in the fleet sector and tie customers into its aftermarket operation.  New man at the top Within two weeks of taking up his post Lambert was plunged into the Chrysler Group's biggest internal meeting of the year when Joe Eberhardt, recently departed executive vice-president of global sales, marketing and service, and Tom LaSorda, Chrysler Group chief executive, arrived to review the UK business.
Having been thrown in at the deep end Lambert said he just had to “get on with it”. Can you describe your first hectic months as managing director of Chrysler Group UK?Joe Eberhardt and Tom LaSorda came over a week before the British Motor Show where we launched the Chrysler Sebring. The show also helped Dodge get off to a good start.
In August we launched dealer corporate business centres at 25 outlets. We needed more dealers with dedicated staff in a position to supply the corporate market.
In September we had a record month with 4,186 new sales – gaining a 1 per cent market share – and in October we announced a
25 per cent reduction in our service, maintenance and repair costs with effect from 1 January. We aim to win back retail customers and send a positive message to the corporate market.
How will you manage to achieve such a significant reduction?We have competitive lifecycle costs. We have cut parts prices and looked at the service content. In the past we were overly cautious but with the new cars group sharing within the DaimlerChrysler Group the warranty spend per vehicle has reduced and we no longer have quality issues with the cars. We're light years ahead of 1992 when the first Jeeps came over.  How else will you bolster the presence of the group's brands in the fleet sector?In November we set up a corporate sales team – the August initiative was with the dealer network. The team is based at our Milton Keynes HQ and will go out to establish relationships with the main players in the fleet market. Without exception large fleets demand manufacturer contact and we didn't have that. We had one person on corporate development, we now have seven. The C-segment Dodge Caliber and the D-segment Dodge Avenger and Chrysler Sebring will be big fleet sellers. Three of the team will target user chooser fleets from 150 to 800 cars. When the corporate sales team has bedded in, what do you anticipate the retail/fleet sales split will be?By the end of 2008 it will be a 60/40 retail/fleet split. Fleets include corporate rental and demonstrator cars. What's in store for the group in the short term?In 2006 sales were up 36 per cent to an all time record of more than 20,000. In 2007 we will launch seven more models including two and four-door Jeep Wranglers.
In April we launch the Jeep Compass compact SUV. The Jeep Patriot will arrive in July. The Dodge Nitro will be followed by the Sebring and Dodge Avenger in September.
Will Jeep feel the backlash from the anti-4x4 lobby?No, in terms of the environment the timing of the Compass and Patriot could not be better. Both have the footprint of a Ford Focus and feature a fuel efficient 2-litre diesel engine. They can be run predominantly in 4x2 mode with 4x4 only used for extra traction.
But are sales of SUVs in decline as a result of increasing environmental concerns?Sales went down at the end of last year because the two best sellers, the Freelander and CRV, were on run out. Jeep sales were up 17 per cent in December and 19 per cent for the year. Large 4x4s attract ill-feeling in cities and we've seen a switch to fuel-efficient diesels. Those who are concerned can choose the Patriot or the Compass. How did the British Motor Show go for the Chrysler Group?It was great for us thanks to a sizeable financial contribution from our parent company. We staged the international launch of the Sebring and also had the Nitro, and the 300c Touring on the stand. Will you attend the 2008 show?That's a good question. It's a big investment of about £600,000. To go last year was a no brainer because we had the Caliber and the Sebring. We'll look at the launches coming in 2008 and also see what the organisers plans are. It's a struggle to attract an audience to the (London Docklands) venue from north of Birmingham. Personally I think the NEC is the right location in terms of logistics. What expansion plans do you have for the dealer network?We plan to increase the network from 88 sales points to 100 by the end of 2007. We don't own any and don't intend to – our dealers are better retailers than we are. How have dealers coped with so many new models?They have coped well with the product offensive and the Dodge brand launch. At the end of 2004 we worked on planning packs, focusing on growth in facilities and staff. Most centres went through the process and benefited from extra volume. Next year we'll reach the next level in sales.  What will be the key models for each brand in 2008?For Jeep the Grand Cherokee, for Chrysler the 300C and for Dodge the Caliber FACT FILE: Peter LambertJob title: Managing director, Chrysler Group
First job: Retail sales executive for W&T Avery
First car: Hillman Imp
Favourite book: The Long Walk to Freedom by Nelson Mandela
Favourite pop group: U2
Favourite newspapers: The Daily Telegraph, The Financial Times and The Sunday Times
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