Industry Report: Chrysler's Short Term Future Part I - The Launch of Five New Models in 2005

Can Chrysler Continue to Grow its Volume, Market Share and Profitability With Only Five New Model Launches in 2005?

Chrysler Group's CEO Dieter Zetsche is only too aware that balancing the need for new model introductions to spur on excitement

Last year Chrysler debuted nine new models, a record number that it expects to exceed in 2006. (Photo: Trevor Hofmann, Canadian Auto Press)

at the dealer level and interest in its cars from would-be purchasers, and the high costs of doing so which can negatively affect yearly profits and all-important share values, is critical for any automaker.

Last year saw the Auburn Hills, Michigan-based auto giant debut nine new models, a record number that it expects to exceed in 2006. Fortunately, due to the strong reception given to its Chrysler 300 and Dodge Durango, among others, it was the only domestic carmaker to be profitable from vehicle sales alone.

Chrysler's U.S. sales increased by 3.2 percent last year, while its market share moved up to 13 percent from 12.8 percent. Some

Some analysts suggest, however, that fewer new vehicle launches in 2005 could slow down Chrysler's current momentum. (Photo: Trevor Hofmann, Canadian Auto Press)

analysts suggest, however, that fewer new vehicle launches in 2005 could slow down the automaker's momentum.

"Of course, we know that our competitors aren't sitting on their hands," Zetsche commented. "That's why the Chrysler Group will, and must, continue to develop and launch new vehicles at a brisk pace."

While more a more conservative number than last year, 2005 will still be a vitally important year for new model launches, as much for bringing a total of five new models to market as it will be due to the high-volume segments these vehicles will fill.