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Chrysler to spend US$250m more on new vehicles

DaimlerChrysler AG's Chrysler Group will spend an extra US$250 million to promote nine new or redesigned vehicles next year, a product offensive the automaker hopes will reverse slumping sales and declining US market share, Chrysler chief Dieter Zetsche said on Monday.

Chrysler used Cobo Arena, site of the annual North American International Auto Show, for the debut of several new products to hit showrooms next year, including a Chrysler Crossfire roadster, a larger Jeep Wrangler and a redesigned Jeep Grand Cherokee.

The smallest of Detroit's Big Three automakers also showed off three concept vehicles, two from Jeep and one from Dodge, that could become production models in coming years.

Analysts and even some dealers have said Chrysler has paid the price in recent years for an aging lineup, while Asian and European companies have pursued business with a variety of new products.

Zetsche acknowledged on Monday to a group of automotive journalists that the company has acted defensively in the midst of increasing competition, cutting material costs by 15 percent and improving quality by 30 percent in the past few years.

To help spread the word, Zetsche said Chrysler has increased its marketing budget by US$250 million, but he wouldn't disclose the amount of the original budget.

Chrysler's US market share has fallen from 16.1 percent shortly before its merger with Daimler-Benz in 1998 to roughly 13 percent.

Already this year, with US sales down nearly 5 percent, Chrysler has started production of a redesigned and larger Dodge Durango sport utility vehicle, which the company hopes will reclaim business in the profitable light truck segment.

Among the new vehicles sche-duled for launch next year: the Chrysler 300C sedan, which Zetsche called the brand's flagship; a convertible version of the PT Cruiser; the Jeep Wrangler Unlimited, which is 38cm longer than the current model; the Jeep Liberty Renegade, whose diesel engine will increase fuel efficiency by 25 to 30 percent; and a redesigned Dodge Dakota pickup.

Longer-range plans call for 25 new or redesigned vehicles over the next 36 months.
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