Submitted by: Mandeep Kaur(M100700025)

Introduction of Chrysler (a)what business are we in?

U.S.-based automobile manufacturer headquartered in the Detroit suburb of Auburn Hills, Michigan.

Chrysler was first organized as the Chrysler Corporation in 1925. Up until 1998, Chrysler Corporation traded under the "C" symbol on the New York Stock Exchange.

In 1998, Chrysler and its subsidiaries were purchased by German-based Daimler-Benz AG

On June 10, 2009, the sale of most of Chrysler assets to "New Chrysler", formally known as Chrysler Group LLC was completed.

The federal government financed the deal with US$6.6 billion in financing, paid to the "Old Chrysler", a new company called Old Carco LLC set up to take over the remaining assets and liabilities, which remained in Chapter 11 bankruptcy.

SENIOR MANAGEMENT Executives appointed after Fiat took over

management control Olivier Francois, Chrysler brand and

marketing Ralph Gilles, Dodge and design Michael Manley, Jeep and international

sales Pietro Gorlier, Mopar parts and service Fred Diaz, Ram trucks and sales Richard Palmer, Chief Financial Officer

Chrysler Type : Limited liability company Industry : Automotive Predecessor : Chrysler LLC Founded : June 6,1925 Founder(s) : Walter Chrysler Headquarters : Auburn Hills , Michigan, US Key People : C. Robert Kidder (Chairman),Sergio

Merchionni (CEO) Product : Automobiles, Automotive Parts Revenue : US$ 17,1710 million (2009) Net income : US$ 3,785 million (2009)

CURRENT VEHICLE BRANDS Chrysler — Passenger cars, minivan Dodge — Passenger cars, minivan,

crossover, and SUV Ram — Trucks and commercial vehicles Jeep — SUVs and crossovers Global Electric Motorcars (GEMCAR) —

Battery electric low-speed vehicles

ELECTRIC VEHICLES The first electric vehicle produced by Chrysler

was the 1992 Dodge EPIC concept minivan Established in September, 2007, Chrysler's ENVI

division led by Lou Rhodes specifically deals with new all-electric and hybrid vehicles not based on existing models

Chrysler is also currently planning at least three hybrid vehicles, the Chrysler Aspen hybrid, Dodge Durango hybrid, and the Dodge Ram hybrid including HEMI engines.

Chrysler has also been experimenting with a Hybrid Diesel truck for military applications

PRODUCT CATEGORY Chrysler Airflite 2003 Chrysler Akino 2005 Chrysler Atlantic 1995 Chrysler California Cruiser 2002 Chrysler CCV 2000 Chrysler Chronos 1998 Chrysler Citadel 2000 Chrysler Falcon 1955 Chrysler Firepower 2005 Chrysler Imperial Concept 2006

Chrysler firepower (2005)

Chrysler firepower (2005) The Chrysler Firepower was a Dodge

Viper based concept car DaimlerChrysler produced under the

Chrysler brand The Firepower's engine was a 6.1 L Hemi

V8, this engine produced 425 hp (317 kW) and could propel the vehicle to a 0-60 time of 4.5 seconds.

Featured on the cover of Car and Driver

14 countries The 14 countries that are selected are as follows:

North America- U.S.A .

South America -   ARGENTINA ,BRAZIL .

Eastern Europe-  Belarus.

Western Europe -   Austria.           Africa countries-  South Africa, Kenya .

Middle East countries-  Egypt .

Asia -  China ,India , Japan. Myanmar , Indonesia

Oceania- AUSTRALIA

MANAGEMENT REPORT (b) how much revenue are we generating?

First-quarter Group operating profit of €628 million (Q1 2004: €1,546 million);

€1,428 million excluding exceptional charges from smart

Net income of €288 million (Q1 2004: €412 million)

Earnings per share of €0.28 (Q1 2004: €0.41) Revenues of €31.7 billion slightly lower than in

prior-year period due to exchange-rate effects Excluding exceptional charges from smart, slight

increase in Group operating profit still expected for full year compared with 2004 (€5.8 billion)

GLOBAL MARKET SHARE By 2014, sales in the U.S. market will double to

reach nearly 2 million units, both due to the increase in U.S. SAAR and to an increase in Chrysler Group market share to slightly more than 13 percent

Sales outside the North America region will increase threefold to 500,000 units in 2014, up from 150,000 units

Chrysler Group is forecasting a 2010 U.S. sales range from 1.1 to 1.2 million units, based on a SAAR forecast of 11 million and a market share range from 10-11 percent, with total Chrysler Group worldwide sales between 1.6-1.7 million units

(c) For each country, What are the 5 leading competitors for Chrysler for product category for Chrysler firepower 2005?

North America

In U.S.A - The competitors 1.General motors , 2.Volkswagon, 3.Ford Fiesta , 4 Honda Motor Co. 5 Toyota Motor co.

South America

In Argentina – The competitors 1.Honda, 2.Peugeot, 3.Henry Ford, 4.Chevrolet, 5.Fiat

Oceania

In Australia- The competitors are 1.Fiat, 2.Chevrolet, 3.Tesla Motors, 4.Toyota

Middle east countries In Egypt – The competitors are 1.Chrysler Neon , 2.Hyundai , 3.Sonata Ssangyong Motors, 4.Isuzu N series , 5. Peugeot.

In Brazil – The competitors are 1.Mitsubishi Motors,  2.Honda CRV  . 3.Toyota for runner, 4.Vauxhall Astra, and Range Rover.

Africa countries

In Kenya- The competitors are 1.General Motors , 2.Mazda In South Africa- The competitors are 1.Mitsubishi, 2.Isuzu,

In Eastern Europe

Belarus- The competitors are 1.Ford Mondeo, 2.Fiat, 3.Audi R8, 4.Toyota Motor, 5.Austin Metro.

In Western Europe

Austria- The competitors are 1.Mazda, 2.Infinitim, 3.American Motors, 4.Fiat , 5.Volkswagon ASIA

In China – The competitors are 1.Chevrolet, 2.Austin motor, 3.Byd f3 dm, 4.Ford Mondeo, 5.General Motors

In India - The competitors are 1.Hyundai. 2.Fiat, 3.Chevrolet, 4.Maruti Suzuki, 5.Volkswagen,

In Japan

In Indonesia - The competitors are 1.Mitsubishi fusocanter, 2.Toyota Dyna, 3.Hino Dutro, 4.isuzu ilf, 5.General Motors Holden Ltd

In Myanmar – The competitors are. 1. Mazda 2.General Motors 3.Lexus 4.Mitsubishi Pajero

LEADING COMPETITORS IN USA

General Motors Ford

Introduction of leading competitors

General Motors, Ford and Chrysler are often referred to as the "Big Three" or, more recently the "Detroit Three“.

largest automakers in the United States and Canada third in North American sales, after being overtaken by

Toyota in 2007 Honda passed Chrysler for the fourth spot in 2008 US

sales General Motors filed for Chapter 11 Bankruptcy in the

United States and will undergo restructuring. General Motors of Canada did not file for bankruptcy. The result will mean a cost of 50 billion dollars in addition to 15 billion in bailout relief already paid by the United States government for a 60 percent ownership.

Leading competitors in Japan Toyota Honda Nissan

Introduction considered the leaders at producing smaller, fuel-

efficient cars the Honda Civic was considered superior to American

competitors such as the Chevrolet Vega and Ford Pinto. The Civic is the best-selling car in Canada for 12 straight years in a row.

Toyota launched the Lexus name with the LS 400 which debuted at $38,000 in the U.S., in some markets being priced against mid-sized six cylinder Mercedes-Benz and BMW models

Nissan 240Z was introduced at a relatively low price compared to other foreign sports cars of the time (Jaguar, BMW, Porsche, etc.), while providing performance, reliability, and good looks

Leading competitors in Germany

The German trio Mercedes-Benz, BMW and Audi are often referred to as "Germany's Big Three”

the actual major automobile manufacturers are Daimler AG (producer of Mercedes-Benz) and the Volkswagen Group (producer of Audi), along with BMW.

Volkswagen Group has long been the largest automaker in Europe

Daimler AG holds major stakes in other automakers including Mitsubishi Fuso

(d)MARKET SHARE OF COMPETING PRODUCTS & BRANDS

Falling sales and market share have resulted in the Big Three's plants operating below capacity (GM's plants were at 85% in November 2005, well below the plants of its Asian competitors), leading to production cuts, plant closures and layoffs.

Crucial to keeping the plants running, which in turn drove a significant portion of the Michigan economy

in the U.S., in some markets being priced against mid-sized six cylinder Mercedes-Benz and BMW models

GM’s sales in July were down by 32%, Chrysler’s by 34% and Ford’s by 20%. Their combined market share in America sank last month to an all-time low of 43%.

COMPETING PRODUCTS &MARKET SHARE

Toyota motors – 17.6% , General motors – 18.1% Volkswagen – 9%, Honda – 8.5% , Chrysler - 16.7% , , Ford – 16% , Maruti Suzuki – 55%, Peugeot- 13.5% , Fiat- 17.6%

(e)POSITIONING STRATEGY OF CHRYSLER

DaimlerChrysler’s strategy has the goal of increasing corporate value through profitable growth.

We intend to assume a leading role in the worldwide automotive industry

With regard to the quality of our products and services, the positioning of our brands and our profitability, we are striving to achieve a top position in international competition.

FOUR PILLARS Superior Products & Customer Experience: We aim to supply

top-quality products supported by excellent services that our customers perceive as being superior to the competition.

Leading Brands: We strive to establish clearly positioned brands with excellent reputations, which complement each other to form a tremendous product portfolio.

Innovation & Technology Leadership: We aim to secure the mobility of tomorrow and set ourselves apart from the competition through innovation and technology leadership

Global Presence & Network: We are a strong, globally active automobile manufacturer with networked operations. This enables us also to participate in the dynamic growth of the emerging markets outside North America, Western Europe and Japan.

ACHIEVEMENT OF THESE STRATEGIC GOALS

Operational Excellence: We intend to attain a leading position in international competition with regard to operational excellence. We are therefore creating clear structures, lean processes and short paths in all areas of the company and at all stages of the value chain, and are making full use of the possibilities offered by standardization and modularization.

High-Performing, Inspired People: The creativity, motivation and commitment of our workforce is the foundation of our success.

NEW BRAND STRATEGY OF GENERAL MOTORS

GENERAL MOTORS Their future depends on how well their remaining

brands are positioned and how well each strategy is executed.

replay of Alfred Sloan’s eliminating a number of GM brands, and building a gigantic business around five brands that became a “car for every purse and purpose”.

most powerful brands stand for a word or a concept task for the post bankrupt GM is to carefully figure

out what their four remaining brands should be about.

GM's corporate year-over-year comparisons still include year-ago sales

STRATEGY OF FORD Ford is getting all the buzz these days as its sales,

market share and profits soar. Positioning strategy directly affects market share In 2006, General Motors and Ford sold 14.7 million

vehicles worldwide, more than three times the volume of Daimler AG (4.7 million), a figure that includes the money-losing Chrysler division which Daimler has since sold off.

In 2006, General Motors and Ford sold 14.7 million vehicles worldwide, more than three times the volume of Daimler AG (4.7 million), a figure that includes the money-losing Chrysler division which Daimler has since sold off.

Positioning strategy of Toyota Toyota decided to cut its volumes

around the world, and adjusted capacity to fit demand.

Toyota has cut down on pricing heavily, and has positioned it to fight against Honda insight in Japan.

Toyota alter the brand image of prius and also sacrificing on profitability

Positioning strategy of Honda Both industry attractiveness and

competitive position, especially the later can be shaped through strategy.

Strategy and competitive advantage are inter-related.

Technology as a strategy plays an important role too.

Companies, which bring in technological innovations and expand their distribution reach, considerably grow faster and have an edge over others.

Positioning strategy of Nissan Nissan should put more marketing weight

behind its continuously variable transmissions

That's still an effective strategy, and it will become even more effective now that the Dodge brand is rebuilding itself around an aggressively "American”

positioning and the car itself has been so thoroughly updated.

(f)GROWTH OF THE MARKET OF CHYRSLER FIRE POWER 2005

Chrysler is known to reliant on U.S. market as more than 90% of its sales comes from North America.

Chrysler has a weak marketing position in the auto market so far.

Chrysler needs to have smaller car in order to penetrate to South America or Asia market.

(G) EXPECTATION OF MARKET SIZE

Carmaker Chrysler to supply batteries for the car its ENVI product line

Customers' expectations that the ... new plug-in hybrid or electric vehicles in service by 2015

Producers of lithium-ion batteries should have a prosperous future, as the auto industry moves away from the internal combustion engine

MARKET SIZE

Battery Electric Vehicle Market Size – Frost & Sullivan

• OEM Motor Drives– The motor drives market is expected to exceed $800 million in 2010 with

an AAGR of 24% according to BCC Research.– The global market for motors for such vehicles, including hybrids, plug-in

hybrids and battery electric vehicles will grow from $550 million in fiscal year 2009 to $11 billion in fiscal year 2020. Source: Toshiba

– By 2015, the U.S. will be the largest market for EVs, selling approximately 640,000 vehicles.  Source: BCC Research

• OEM Battery Packs– The rapidly growing market for traction batteries will exceed $55 billion in

only ten years according to IdTechEx "Vehicle Traction Batteries 2010-2020"

– The traction battery market has an annual growth rate of about 5% according to Freedonia Group.

– China will record the largest gains and surpass the U.S. as the largest market by 2012.

– Between 2010 and 2020, the market for the start-and-stop batteries is expected to expand from about $100 million to $2.1 billion. Source: Johnson Controls

• Fleet Consumers Sales of hybrid vehicles in the fleet sector will total nearly 4 million

worldwide between 2009 and 2015. The VST PHEV conversion system will pursue this market sector.

(h)EXPECTATION FROM CHRYSLER’S MARKET SHARE IN 2015

If Chrysler Group is to achieve its goal of exceeding 13 percent market share by 2014, it will need more customers

Both Dodge and Chrysler brands have high hopes their new product offensive will boost sales and help lift the company from its current market share – about 9.4 percent.

IHS predicts Chrysler will find a stable share of about 8.8 percent between 2011 and 2014, according to forecaster Chris Hopson.

Market share goals are more legitimate than before” based on the new product.