Chrysler slows down dealership expansion in China

Shanghai, March 27 (Gasgoo.com) -- Chrysler will expand its sales network for Chrysler and Jeep vehicles in China to 110 dealerships by the end of this year, which is a sign of slowing down of its operation, local newspaper Beijing Times reported today.

The number of dealerships for dual brands of Chrysler and Jeep will grow to 110 from the current approximately 90, according to Ulf Ausprung, general manager of Chrysler Group (China) Sales Ltd. This is far from the company’s earlier target. However, he did not elaborate on the reason for this move.

Chrysler planned to increase its dealerships in China from 54 to 121 till the end of 2007, as Simon Elliott announced last October, ex-president and CEO of Chrysler Group China. However, there are at most 90 dealerships now after the company merged the sales networks for Chrysler and Jeep brands that month.

Chrysler sold a total of only 12,000 vehicles in China in 2007, which is perhaps the main reason for the executive team reshuffle, industry analysts say. Philip Murtaugh, who has extensive experience from working for both SAIC and GM China, was appointed as head of Chrysler China early this year.