Efforts of Chrysler Group to revive California market starting to pay off

Article by Christian A., on May 1, 2012

Recent efforts made by the Chrysler Group for a sales revival in California are already showing good results. To deal with the persistent weak points in the largest market in the nation, the company has increased its stores to 127, including Fiat, by opening 17 dealerships over the last 20 months. In addition, the company launched an advertising campaign with California-themed TV commercials.

The automaker also separated California from its Western sales region, which means that the state becomes its own region with a budget similar to the company's eight other regional sales offices.

Moreover, during the first two months of the year, automobiles from the Chrysler Group comprised 6% of the entire retail registrations in the state. This is the biggest share of the California market since 2008, the data from Polk revealed. The goal of the automaker is to pull even with its nationwide share of the market that Polk disclosed was 10.3% of U.S. retail registrations through February. This means that the company still has a long way to go.

The dealers consider Chrysler’s expanded product range as a factor for its having gained momentum. The lineup consists of 16 new or reworked nameplates in the 2012 and 2011 model years. Another factor for them was the opening of the California Business Center in 2011 that brought funding and staff as well as a renewed focus to the market Jason Stoicevich, the business center's director, related that the plan "ultimately has really started to take hold" in 2012.

He further stated that this is "really where we've started to officially turn the corner and get back to the numbers we're capable of out here." During the early parts of 2011, Chrysler separated its Western regional sales office from the California market. In the old system, the needs of the California-based dealers rivaled for marketing funds and attention with those in the eight other states.

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