Chrysler says sales boost abroad 'bodes well for the future'

Alisa Priddle / The Detroit News

Chrysler Group LLC posted some good international sales news Wednesday, which could be a precursor to the global growth the automaker seeks with the help of partner Fiat SpA.

A day after releasing disappointing sales results in the U.S., Chrysler said sales outside North America increased 9 percent in January compared with a year ago. That is the first increase internationally since May 2008 for a company that has struggled to gain a presence in many markets.

"After a very tough year, this bodes well for the future and is in line with our expectations," said Mike Manley, president in charge of international sales.

The volume remains small -- 11,465 total -- but is viewed as encouraging by Chrysler, which has plans to grow international sales to 500,000 by 2014 with the help of Fiat. The Italian automaker has a strong distribution system in Europe and South America, areas where Chrysler wants to grow.

The growth plans are ambitious. Last year Chrysler sold 140,786 vehicles outside North America, a decrease of 34 percent compared with 2008.

There is tremendous potential with Fiat, said analyst Joe Phillippi of AutoTrends Consulting Inc. in Short Hills, N.J.

"But that's a harvest that's probably two years away," Phillippi said because it takes time to put processes and infrastructure in place.

There will be some payoff as early as this year and "Chrysler should do better," he said, "but 2011 should be a solid year."

Chrysler has increased marketing in China to tap into the nation's growth and was rewarded with a sales jump of 132 percent.

Colombia and Chile saw their best-ever sales in January.

By brand, Jeep sales internationally increased 16 percent while the Chrysler and Dodge brands increased 7 percent and 4 percent, respectively.

Chrysler's international sales are powered by Jeeps and minivans, Phillippi said. The automaker's "market share is so small in many places that a few conquest sales really add up."

"We are glad to see this gradual recovery and return of stability to our key markets outside the U.S.," Manley said. "We confidently expect to solidify our international business this year, as we benefit even further from our alliance with the Fiat Group."

On Tuesday Chrysler posted an 8.1 percent decline in U.S. sales and dropped to the No. 6 spot behind Nissan Motor Corp. Chrysler's U.S. market share has fallen to 8.2 percent from 9.5 percent a year ago as it awaits an influx of new or refreshed products due later in the year.

apriddle@detnews.com (313) 222 - 2504