GM Inside News Forum banner

Mopar to generate revenue until new products arrive?

4K views 15 replies 15 participants last post by  AllyAshantiBrown 
#1 ·
Chrysler flexes parts arm
Carmaker to use after-market division to generate revenue until new products arrive

Alisa Priddle / The Detroit News
April 6, 2010

Chrysler Group LLC is trying to leverage the strength of its Mopar parts division to boost its bottom line and reputation for customer service.

For many enthusiasts, the word Mopar is synonymous with Chrysler vehicles. For others, it refers to a company-made part. Chrysler's new management wants Mopar to stand for everything a customer experiences after the purchase of a new car -- from oil changes to seat covers.

Mopar is Chrysler's fifth brand, after Chrysler, Jeep, Dodge Car and Ram Truck. And during the automaker's new product drought, its importance has grown as a means to draw people to the dealership, inspire consumer loyalty and generate revenue for a company whose sales and profits slid until it was forced to declare bankruptcy and form a partnership with Fiat SpA.

Pietro Gorlier is responsible for ensuring Mopar is profitable and building a reputation for quality parts and service.

He was brought over from Fiat SpA by Sergio Marchionne, CEO of both companies.

"Mopar, our parts distribution business, has been reconstituted as a business under Pietro Gorlier's leadership," Marchionne said in November when Mopar's new role was outlined.

Mopar has "clearly defined penetration volume and efficiency targets, all of which are designed to generate a substantial improvement in profitability and to strengthen the equity of our brands," Marchionne said.

"Mopar now stands for everything after the sale," Gorlier said.

Parts and service represent a "huge asset, if managed properly" and is the area where there is the most to gain, said Gary Dilts, senior vice president with J.D. Power and Associates in Troy.

Gorlier said many dealers were more focused on sales -- until that well started running dry.

"When there was no longer traffic in the showroom, dealers turned their attention to service and parts in a way they never had before," he said. They recognize "survival depends on having efficient and reliable aftermarket."

Market share at 8.7%

Chrysler's market share is 8.7 percent, reflecting a lineup with only one all-new 2010 model: the Ram heavy-duty pickup.

"Fixed costs don't go down just because sales are off," said Randy Berlin, director at Urban Science, a Detroit consulting firm.

Service, parts and accessories are a way to drive revenue now and help bridge the gap until new products draw showroom traffic.

Chrysler has several initiatives, including express oil change lanes, extended service hours and more technicians at dealerships, better logistics to ship and stock parts, easier to install accessories and an online Mopar store.

Accessories contribute $400 per vehicle -- and as high as $1,000 on some models. Chrysler's five-year plan calls for the $400 average to grow 50 percent. There are about 10,000 accessories now, and 100 new items are added annually.

Business will grow as vehicle sales increase, but also by promoting how vehicles can be customized with Mopar parts.

Chrysler shows Moparized vehicles at auto shows. Some are on display in New York now.

Because many buyers choose accessories at the time of purchase, Chrysler is developing accessories for new cars earlier so all are ready in time for the launch.

A Mopar eStore launched in December to capture the 35 percent of Internet shoppers who buy parts online.

"I want to sell everything that can be used by someone driving a car," Gorlier said.

Service lacks street cred

All the moves are designed to build on the strength of the Mopar name that dates to 1937.

But while Mopar parts have a good reputation, customer surveys show Chrysler service does not, Gorlier admits.

"We need to take care of service. Only through good customer service experience can you get people back," he said.

MORE AT: http://www.detnews.com/article/20100406/AUTO01/4060322/1148/?source=nletter-auto
 
See less See more
#2 ·
Good luck, Chrylser. I did not buy a Magnum or a Charger, which I both liked a lot in 2006, because of the horrid reputation of your dealership outside of Fort Campbell. Your dealer network could use a huge customer service makeover.
 
#3 ·
When I bought my Caliber SRT... I had to drive from North NJ to Bostom Mass to get one being as there were none in the area of me. Not one dealer around my house when I went and asked about seeing one made a single effort to try and get me to see it. They all just wanted me to buy the R/T's they had on their lot. If I didn't think the SRT looked soo much better then the HHR SS i would have stayed in GM/Chevy.


Overall, besides quality, I wouldn't ever consider a Mopar car/truck again.
 
#5 ·
I don't know whats in chryslers tapwater right now but MOPAR will not save their skin by itself. A stronger lineup that is so desperately needed, a complete reconstruction of the way its dealers operate, and the quick introduction of Fiat tech will be what could save the company from certain doom
 
#6 ·
"Express oil change lanes" - you pull in, your car is raised, the oil drained, then you are instructed to pull forward and pop your hood, and a service tech fills new oil. You drive off in less than five minutes.

But seriously, my Dodge has only had Moper parts since it was brand new. Maybe that explains the longevity.
 
#7 ·
Wow, talk about grasping for straws. If they REALLY think this will help them any bankruptcy will have been just a delay before they close their doors.
 
#8 ·
I have a Wranlger... and i must say the Dealers around here are pretty damn good! never had a problem. then again maybe being the "home town" of Jeep and the Wrangler made a difference?
 
#9 · (Edited)
Ive never had a problem at the dealer with my 300SRT8. I get mail and follow ups from them every time I bring my car in. If they want to use MOPAR as a way to bring in business, they first need to work out a pricing strategy that makes them comparable to the aftermarket. A Corsa exhaust from the dealer is significanly more installed than the national chain muffler shops around here.
 
#10 ·
My cousin bought a Chevrolet Cavalier the same year I bought my Viper. When she had a transmission problem, she got a rental car for free while GM took 2 days to fix it. My Viper had its timing chain cover gasket fail, which dumped ALL the coolant into the oil pan, requiring an engine rebuild. Engine was pulled, shipped to Arrow Industries in Detroit. My Viper was at the Dodge dealership for **3 MONTHS**. No rental car. Nothing. The Viper was brand new, and I had no other car at the time, so I was making payments for 3 months on the car while also having to pay for a rental car out of my own pocket.
 
#11 ·
JeffinDFW,

That is absolutely unacceptable service for someone buying a flagship model.
 
#12 ·
Just bought a Challenger SE. Dealer had 'mix up' up with car - I tested a blue SE on Saturday with the Sat radio - only blue one they had. Came in Wednesday, saw the 'same' blue SE I had first seen on the showroom floor, which I had tested Saturday.

Weds was the last day of the month, bought it at like 9pm, but when I got home, I realized it wasn't the same car. They must have switched the cars! I later noticed the window sticker said my car had been shipped to a different dealer. They must have horse-traded with the other dealer on Mon or Tues.

However, they are putting in an aftermarket sat radio for free, so I can't complain.

Really love the car though.

One thing about the Challenger vs. Camaro and Mustang V6 - the insurance is NOT prohibitive. It insures like a Charger. If you factor in the extra $50/month insurance on Camaro, it's like having a sticker price roughly $3000 higher.
 
#13 ·
One thing about the Challenger vs. Camaro and Mustang V6 - the insurance is NOT prohibitive. It insures like a Charger. If you factor in the extra $50/month insurance on Camaro, it's like having a sticker price roughly $3000 higher.
Actually it doesn't insure like a Charger, its much cheaper to insure :). The Charger's insurance on average is higher. The Mustang's is brutal.
 
#16 ·
There are several ways you may place your order. We accept Amercian Express, Visa, Master Card and Discover Card over the phone. We can also send you a Paypal invoice if you prefer that service. Please make sure you include your name, address and phone number with all correspondences. If you sending payment via personal check (7-10 working days to clear) or money order please make payment payable to Dante's Mopar Parts. Payment in US funds only. Orders may be picked up at the warehouse by appointment only.
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top