Chrysler is the latest U.S. company in the news announcing plans to focus on international markets for profit and growth. As the question mark after the word recession has transformed into a bright red exclamation point over the past few weeks, more and more companies are waking up to the opportunities available overseas and the need to shift more focus there. Chrysler Chief Executive Bob Nardelli summed up the situation:
"We sold a record 238,000 vehicles in international markets in 2007 and we're off to a good start in 2008," Nardelli said. "Our year-to-date international sales are up 10% through February, as we reported our 33rd consecutive month of sales growth outside of North America. By 2012, we plan to increase our international sales to more than 400,000 units..."
Chrysler's U.S. sales were down 13 percent in January and February. Of course, shifts like this don't happen overnight—and especially not in the auto industry. Chrysler has been moving in this direction for some time, but not as boldly as some of its rivals.
Chrysler relied on the U.S. market for almost 90 percent of its overall sales of cars and light trucks in 2007, a higher percentage than its Detroit-based rivals GM and Ford Motor Co, which have been able to count on gains in emerging markets to offset losses at home.
Nardelli said Chrysler was taking steps to bolster its presence in fast-growing auto markets like Brazil, Russia, China and India.
All of this will no doubt come as welcome news to Chrysler's employees and suppliers. Nardelli was brought in by Cerberus Capital Management in August after they purchased Chrysler from Daimler AG and has spent the bulk of his time and efforts so far on cost-cutting measures in the U.S. According to the MarketWatch article, he is now trying to accelerate the auto maker's international focus by funneling both money and personnel to that part of the business.
Links:
Chrysler targets overseas growth; plan on track - Reuters
Chrysler CEO focusing on international sales to improve business - MarketWatch
