The Oakland County Daily Tribune reports Vice Chairman Jim Press has said Chrysler is breaking out of long-term contracts for network television advertising and moving money into local television spots and other forms of advertising that are less expensive. Excerpts from the story:
Chrysler LLC is hoping the North American International Auto Show will help it fight off the notion that the automaker has been disabled by combination of credit crisis and deep recession that has sharply reduced the company’s revenue.
"We thought we had a very, very good start to the show," Chrysler CEO Bob Nardelli said. "We’ve been on an exciting journey."
Nardelli told reporters that the company definitely had a plan to survive the drop in sales during the second half of the 2008. "Contrary to some reports, we’re not in hibernation," he said. "There aren’t many companies that could survive a 20 percent drop in revenue," but Chrysler has.
Nardelli said Chrysler has eliminated the $2.4 billion in costs from its overhead during the past year and is prepared to operate in a market that produces far fewer sales. The company wants to operate in economic environment where sales are substantially below the trend line established earlier in the decade.
Press said Chrysler is breaking out of long-term contracts for network television advertising and moving money into local television spots and other forms of advertising that are less expensive.
Nardelli said Chrysler does need the $7 billion in bridge loans, which will be repaid, it was promised by the federal government. The company will also need concessions from the United Auto Workers, creditors and dealers no later than the end of March.
However, the combination of restructuring and concessions will allow the company to move ahead with plans to bring out new vehicles that will meet and/or exceed consumer expectations.
Nardelli said the company is fully committed to bring out vehicles that operate on electric power by the end of 2010. "We’re not going to be caught short again," he said.