Dealers Concerned about Chrysler Advertising - Site Mistakes by Auburn Hills Execs

LAS VEGAS February 1, 2004; Sharon Silke Carty writing for Reuters reported that recent advertising missteps by DaimlerChrysler AG's Chrysler unit had dealers grumbling Sunday, but the company promised it will unveil an all-new advertising campaign later this month. Following a meeting with dealers at the National Automobile Dealers Association convention Sunday, Chrysler Vice President of Global Sales and Marketing Joe Eberhardt said the new ad campaign should address a lot of the concerns dealers have had about the company's marketing strategy.

Dealers were critical of the move by the Chrysler unit, which also entails the Dodge and Jeep brands, to sign singer Celine Dion for $14 million. They claimed she wouldn't resonate well with their customers, and were quickly proved correct. The company has since backed off from using the pop diva's image in commercials, but still use her songs.

The company also blundered in December with its sponsorship of the Lingerie Bowl, a pay-per-view Super Bowl halftime show involving scantily clad women. The company has since stripped its name from sponsoring the event.

Communicating with the public is going to be a crucial task for Chrysler in the upcoming year, as the company begins its initiative to roll out rear-wheel drive with the 300C sedan. The company says current technology can overcome any problems associated with rear-wheel drive, but dealers in the snow belt are skeptical. Mr. Eberhardt said one of the company's main focuses this year will be educating the public that rear-wheel drive is as good in the snow as front- wheel drive.

"We'll find out in my area," said Steve McCann, a dealer from Maine. "We have a lot of people who travel to Florida in the winter, so maybe we can sell it to them."

Mr. Eberhardt said one thing the company won't do is start naming names in its ads. Ford Motor Co. has been showing commercials that compare its trucks with Dodge trucks. Although dealers told Mr. Eberhardt they'd like to see the same thing, the company won't comply.

"I don't think we'll step that low," he said.

Still, dealers are excited about new products on their way. Several dealers interviewed following the franchise meeting said they think the Dodge Magnum and the 300C will be solid sellers.