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Chrysler Seeks 'Made in China' Tag

 

by Stephen Walker

 

5th January, 2007

The least attractive branding on offer around the world is the 'Made in China' tag. When shopping, the first thing I look at is the tag. If a product is made in China, it goes straight back onto the shelf or rack.

Sure, made in China products are often cheap. But from my experience, cheap products are not good products. Many cheap products are over-priced but some company executives see that their short term objectives of higher profit can be met by lower production costs, thus some execs seek lower costs and higher profit margins as their business model. This is a narrow view, as it seems to me that long term profitability is built upon securing customer goodwill and, therefore, gaining continuing business over the longer term. You can only 'dud' someone so many times, before they take their business elsewhere (permanently).

It is only possible to make a profit if you make a sale. And continuing profit requires continuing sales. Retailers should note that no retailer has made a cent from me by selling me a Chinese made shirt, for example. It is the same with shoes. It is the same with plastic products (kitchenware, clothes pegs, buckets and the like). And it is the same with food.

What about cars?

Is there a consumer-led rush to buy cars with a 'Made in China' tag? Not that I have noticed. However, Chrysler announced in USA, overnight, that they want to sell cheap low-end cars that are 'Made in China'.

Chrysler Group President and CEO Tom LaSorda has confirmed that the company had reached an agreement in principle with Chery Sales Co. to distribute Chery made small vehicles in the North America region, European region and possibly other global markets (which may include Australia).

The agreement is subject to the approval of the DaimlerChrysler Supervisory Board and Chinese authorities.

The cars would have styling cues from Chrysler brands, in an endeavour to de-china the products. Thus badge engineering is to become a key factor for the future of Chrysler.

This is risky business for Chrysler Group, who sold less vehicles globally in 2006 than they did in 2005, despite the introduction of new models and an aggressive global expansion policy. Any resistance by consumers, who may end-up seeing Chrysler as a cheapened importer of cheap Chinese cars, may see boycotts of Chrysler products as a result thus making the company desperate for solutions and exacerbating the already declining sales situation.

Made in China ..... not a good sign!


Other Chrysler news is: here



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