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Chrysler to enter the Chinese market Dodge Pathfinder import first
Dodge is tapping into the rapidly growing imported car market in China, where it's widely believed that importing vehicles can elevate a brand's image. For a relatively unknown brand like Dodge, entering the Chinese market through imports has become an appealing strategy. On February 26, Dodge made a bold entrance in Beijing with a thrilling event featuring roller skating, hip-hop culture, and action-packed fights. Owen, General Manager of Chrysler (China) Automobile Sales Co., Ltd., aimed to position Dodge as a symbol of youth, energy, and fashion. The choice of the iconic 798 Art District in Beijing was no coincidence—it’s a hub for creative and artistic individuals.
Irving, the head of the company, may be targeting this artistic community to build a unique customer base. At the Guangzhou Auto Show, Chrysler showcased the Dodge Kay, an MPV developed in collaboration with Southeast Automotive. In January, Dodge also introduced the Feng Zhe model through the import channel. However, one challenge remains: many visitors to the 798 area were unfamiliar with the Dodge emblem, highlighting the brand’s struggle to connect with local audiences.
In 2007, China’s imported car market saw a surge, with total imports reaching 313,000 units—a 37.9% increase compared to domestic sales growth of around 22%. This booming market attracted Dodge, which sees importing as a way to enhance its brand presence. Additionally, importing allows multinational companies to maximize profits, making it an attractive option.
During the event, Irving emphasized that Dodge is a "muscular" car with strong safety features. Owen noted that compact cars are becoming increasingly popular in China, which is why Dodge chose to introduce this model. However, the market is dominated by German and Japanese brands—Germany leads in passenger cars (42%), Japan dominates SUVs (48%) and MPVs (48%). Dodge faces an uphill battle against these well-established competitors.
At the launch, Dodge didn’t clearly identify its main competitor. When asked about rivals, Owen mentioned Subaru, but the high price point of 230,000 yuan puts it far above most competitors. According to internal research, the pricing was seen as attractive, especially compared to other models priced below 200,000 yuan. As a weak brand in China, Dodge’s chances of success remain uncertain.
Locally producing the vehicle could help reduce costs, but Owen said that if the import sales reach a certain level, production in China might be considered. Building a strong dealership network is key to achieving sales targets. Chrysler has been expanding its network, opening 70 dealerships in 2007, with plans to double that number by mid-2008.
In contrast to its strategy in China, Chrysler is streamlining its U.S. network by reducing the number of low-profit dealers. Cerberus, which owns 80.1% of Chrysler, is also overhauling the product line, aiming to cut nearly 30 models by half over the next three years. The company wants to simplify its offerings and focus on more distinct models.
Dodge’s recent product launches, such as the Feng Zhe, have raised questions about how they will differentiate from future domestically produced models like the Platinum Sharp. Chrysler’s Vice Chairman, Jim Price, mentioned that the company plans to maintain stable output through international markets, including China, India, and Eastern Europe, while keeping its product lineup to 15–20 models over the next few years.
Chrysler has also announced plans to introduce new models in China this year, including the Borui BBDC and the Jeep Wrangler. However, no further details were given beyond that. Meanwhile, Chrysler is adjusting its pricing strategy in the U.S., offering discounts and added features on select models to improve its image. For example, the Chrysler 300C now comes with free navigation and multimedia systems at a reduced price.
These changes in the U.S. will inevitably impact the Chinese market. With Cerberus considering selling Chrysler in the future, the company is still figuring out its long-term strategy in China. While some profitable models are being sold through imports, others are brought in without clear plans for localization.
Whether Chrysler’s efforts in China will lead to success remains to be seen. Losing the Chinese market would be costly, and the competition is fierce. Only time will tell if Dodge can carve out a place for itself in this challenging environment.