CHRYSLER TO SELL CARS IN EUROPE BEFORE YEAR END
Chrysler Corp <C> will begin exporting
vehicles before the end of this year to Europe, the world's
second largest market, which it left in 1978.
    Robert Lutz, executive vice president, told a news
briefing: "After a lapse of almost nine years, Chrysler is about
to re-enter the European market. And we are here to stay."
    Michael Hammes, vice president of international operations,
said Chrysler planned to market "a few hundred vehicles" by year
end. "By the end of 1988, we hope to reach 5,000." The first cars
would be sold in West Germany, Austria and Switzerland, he
said.
    The European base would be in West Germany, but no final
decision had been made on other sites.
    The company will not set up its own dealer franchises, but
intends to work through distributors who will wholesale the
vehicles to a franchised dealer organisation.
    Lutz commented, "We prefer to export to Europe rather than
manufacture here because it will allow us to take full
competitive advantage of the favourable exchange rates due to
the declining value of the dollar."
    The vehicles, on show at this week's Geneva motor show,
include Chrysler LeBaron Turbo coupe and convertible, the Dodge
Lancer ES four-door hatchback, the Dodge Shadow ES compact, the
Plymouth Voyager miniwagon and the Dodge Daytona Shelby Z.
    Chrysler is aiming for the mainstream European buyer, who
appreciates sporty cars with 2.2 litre engines, officials said.
    Prior to negotiating a loan guarantee program with the U.S.
Government in 1978, Chrysler sold its European operations to
Peugeot SA <PEUP.P>. Chrysler now owns 24 pct of Mitsubishi
Motors Corp <MIMT.T> and 15 pct of <Maserati>, which may serve
as European distribution channels in future, Hammes said.
 Reuter
