Chrysler’s mantra ‘Different is what we do’ is something the automaker’s UK division is striving to put into practice as it launches its new 300C model. Jeep/Chrysler UK brand director, Nigel Land, talked to Simon Warburton at the Imperial War Museum as the automaker showcased its latest addition with a slice of Americana using a backdrop of B52, B17 and SR71 aircraft.
Land’s career takes in British Aerospace and Nissan where he was responsible for customer service, dealer operations management, retail marketing and brand marketing as well working at Nissan in Paris. In 2008, he became marketing director of Chrysler UK and in 2010 was MD responsible for the UK transition to Fiat Group before moving to his current position in September 2010.
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The 300C will launch formally in the UK on 14 June in Limited or Executive guise with a three-litre V6 turbodiesel using Fiat’s MultiJet 2 technology. The engine is built by VM Motori and developed by Fiat Powertrain with Chrysler claiming fuel economy of 39.8mpg on the combined cycle and CO2 emissions of 185g.
j-a: Why did you decide to bring the 300C to market at this particular point?
NL: “This is a completely new car – the old vehicle was of a time. Chrysler in North America – and in many other parts of the world – has been known for its large, executive saloons. Under the new organisation, it was right we develop a vehicle that is very much of the future.”
j-a: How many 300C models do you envisage selling this year in the UK and who is your target market?
NL: “This year we are looking for 450 and the full year between 750 and 1,000 vehicles. We are aiming at people who are looking at credible alternatives to the E segment.
“They want a larger saloon but want something different that reflects their personality which is Chrysler. Our options list is [also] very small.”
“We have to focus on Americana, Detroit, as this is what resonates with our customers. It is this revitalised American personality that we in the UK like. We carry the same passion – we understand what we want from our brand.
j-a: How will you market the 300C?
NL: “This is the third Chrysler launch in nine months [and] we have a significant spend planned. We are also finding we have had great success with the product out of the dealerships and into garden centres, golf clubs and shopping centres. Customers in general – the dealer is not necessarily their first choice.
j-a: The UK economic outlook remains unsettled – how will such a large saloon fit into it?
NL: “We looked at the volume on very conservative numbers. We are importing in an environment that is financially repressed but people who want a luxury saloon, they can have a saloon with the 300C that is fully equipped. It is still GBP36,000 (US$56,000) to £40,000 – it is a specific customer.”
j-a: What can Chrysler bring with the 300C that makes it different and stand out?
NL: “What has been reported widely is the resurgence of Chrysler, which is [a] really positive resurgence of the American economy. It is placing it [Chrysler] in a very strong position.
“We said with 300C, we look at the E segment and we sit very competitively in that segment. Migration of customers to the original 300C came from the opportunity impact of the D segment and all across the market place. Within our plans we believe it was a very similar profile.
“There will be advertising in magazines to commence the launch of the 300C, but also as a brand halo, as a flagship for the Chrysler brand. ‘Different is what we do.’ We are looking at all media, also video on demand, the full suite of communications.”
j-a: Is there any way you would look to address the age range of 300C buyers?
“NL: “We know the owners of the 300C are more than 40 years old – easily between 45 and 55 – and are primarily male. Every manufacturer looks to have the 25-35 year old male, but the reality is the age of the average car buyer is nearly 60. People who want to buy a three litre diesel engine have already made that decision.”
j-a: Will there be opportunities for the 300C in the markets outside its consumer base?
NL: “From a fleet perspective, we are working on very specific programmes for the chauffeur market and we are looking at contract hire and leasing. We see opportunities for the individual with private leasing. From a benefit-in-kind perspective, it is not efficient, but no E segment is.
“[However], we are primarily retail-oriented, around 70%-75%. In this segment, what is retail and what is bought with company money, the boundaries are definitely blurred.”
j-a: “To what extent does economic turmoil outside the UK in the eurozone affect your business?
NL: “I think you have to be very careful when looking at the market, at timing of negotiations and the channels where they are taking place. The difficulties being faced in mainland Europe, you could say that influence [s] – the challenge for us – because we are an importer – is what the government does with tax policies. The policy to drive reduction in CO2…is now delivering lower levels of tax revenue.”
j-a: “What about closer to the US – how do you perceive the parent company to be faring?
NL: “Chrysler and Jeep are enjoying [an] unprecedented surge. This has created unimagined opportunities. We have repaid our US and Canadian borrowings early.”
j-a: You are in a close relationship with Fiat – how does that affect you day to day?
NL: “What we find with the alliance is there is far greater cross-fertilisation of design and manufacturing. For example, Ypsilon is out of Poland and Delta is out of Italy.
“As the alliance grows stronger, we will start to see more and more cross-over between the businesses. That will only benefit the overall European business.”
j-a: There has been talk in the UK of strengthening the supply chain – what’s your view?
NL: “The supply chain is a global supply chain, so there will be companies in the UK making components that will end up in the UK or European factories.
“We certainly see with the challenges in Europe, that will have a complete impact on what happens on a supply chain perspective. I guess the majority of companies supplying Fiat and Alfa Romeo will be trading in Italy anyway.”
j-a: The UK government has highlighted the importance of training and even apprenticeships for the auto industry – is that something you endorse?
NL: “What I think is required is continued investment in skills. For example, support for technical and vocational training. We have become very focused with academic qualifications and we need to have these skills in vocational training.”
j-a: Despite the gloomy outlook in Europe, how do you see Chrysler in the UK performing?
NL: “I am very optimistic for the next few years because we have now got three, relatively new, great products in Chrysler.
“We have a completely new brand positioning that lets us look right [to the] heart of the propositions we make to customers. In retail and fleet, some of these programmes will take time to come through and become visible to the general public.
“‘Different is what we do’ is not an ad strapline. It is right for our business, our product and our brand.
“This is a car that promises to deliver German standards of quality – this is the flagship of the Chrysler brand.”
