HOT off the presses.
Chrysler to plow more cash into marketing
Reuters / November 18, 2003
DETROIT -- The Chrysler unit of DaimlerChrysler is planning a major increase in its advertising and marketing next year to support the launch of nine all-new or updated vehicles.
Chrysler Chief Executive Dieter Zetsche announced the boost in spending in remarks to reporters on Monday, saying the company recently ratcheted up its North American "marketing communication" budget for 2004 by $250 million.
Zetsche declined to comment when asked about the overall budget for marketing at Chrysler, or on the significance of the increase in spending at a company that has been seizing on every apparent opportunity to cut costs to return to profitability.
But he said the spending should have a favorable impact on revenues because it was planned to support key new vehicles like the redesigned
2004 Jeep Grand Grand Cherokee and the 300 C sedan, a vehicle he touted as "clearly the new flagship of the Chrysler brand."Other new or freshened vehicles set to make their debut next year include a diesel engine powered Jeep Liberty compact sport utility vehicle, which Zetsche said would have greatly improved fuel economy compared with the current model.
"Obviously profits don't always grow by reducing costs sometimes it's the opposite," Zetsche said.
The new models are part of a product onslaught of 25 new vehicles over the next three years.
He said the planned $250 million in additional marketing costs next year did not include spending on consumer incentives such as interest-free financing and cash rebates. But Zetsche did say Chrysler was not planning to avoid incentives entirely on the new models.