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CHEERING THE CHEROKEE : CHRYSLER DEALERSHIPS PAVE U.S. INROADS INTO JAPANESE MARKET.


Byline: Yuri Kageyama Associated Press Associated Press: see news agency.
Associated Press (AP)

Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world.
 

Realizing it was having trouble getting Japanese dealerships to stock its cars, Chrysler took matters into its own hands: It spent $100 million to buy its own chain of dealerships.

The result is both a success story and an illustration of the difficulties of doing business in Japan. President Clinton is likely to stress both points Thursday when he visits Chrysler Setagaya, one of the dealerships in the new chain.

Buying a network was much more costly than striking accords with individual dealerships. But it allows Chrysler to run the outlets directly and ensures their models aren't shortchanged.

So at Chrysler Setagaya, the Jeep Cherokee Jeep Cherokee can refer to five different SUV models produced by Jeep from 1974 to the present:
  • Jeep Cherokee (SJ), a full-size SUV produced 1974–1983
  • Jeep Cherokee (XJ), a compact SUV produced 1984–2001
 gets star billing, its rugged appeal strongly promoted. With 12,500 models sold nationwide last year, the Cherokee is a blockbuster hit for an American auto in Japan.

At a time when U.S. auto sales Auto Sales

The major producers of domestic automobiles report sales monthly. These numbers are seasonally adjusted by the U.S. Department of Commerce and are available to the public one to five business days after the end of each month.
 in Japan are climbing - by 37 percent since last summer - the sluggish growth in dealerships selling U.S. models remains a sour note. Only 30 new major dealerships have signed on to stock and sell American cars.

The Setagaya dealership, which opened last November, is one of 10 gained by Chrysler Japan Sales when it purchased a network of dealerships. Chrysler's Japanese division also has 123 outlets under contract and sells its Jeeps through Honda's 1,800 outlets.

Chrysler is trying to give the dealership a different look than Japanese car showrooms, which are typically festooned with banners and posters. The Setagaya dealership is all shimmering shim·mer  
intr.v. shim·mered, shim·mer·ing, shim·mers
1. To shine with a subdued flickering light. See Synonyms at flash.

2.
 lights, polished metal and wall-to-wall glass.

``We have a beautiful, clean, intelligent design, neat and free of clutter,'' said Chrysler Japan Sales spokesman Hiroaki Kobayashi.

But there's more than show to the showroom game. With 20,000 rival outlets nationwide, the competition is tough.

Both Jeeps and mini-vans - a craze Chrysler started in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  - are popular in Japan. Recreational vehicles make up about 30 percent of the 5.1 million-vehicle market, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 the Japan Automobile Dealers Association.

CAPTION(S):

Photo

Photo: (Color) Guests flock to Chrysler's Jeep Grand Cherok ee during its debut at a Tokyo auto show An auto show, or motor show, is a public exhibition of current automobile models, debuts, concept cars, or out-of-production classics. It is commonly attended by automobile manufacturers. Most auto shows occur once or twice a year.  in March.

Associated Press
COPYRIGHT 1996 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:BUSINESS
Publication:Daily News (Los Angeles, CA)
Date:Apr 18, 1996
Words:357
Previous Article:NEW-LOOK CHEROKEE POSTS GAINS : FORMER APPAREL MAKER FINDS NICHE IN LICENSING, MARKETING.
Next Article:APPLE PLANS MORE LAYOFFS AFTER SECOND-QUARTER LOSS.
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