Chrysler To Dealers: Hire More Salespeople

Edward Niedermeyer
by Edward Niedermeyer
chrysler to dealers hire more salespeople

From the “yeah, that will work” file comes word that Chrysler is pushing dealers to hire more salespeople in order to make its five-year plan goal of increasing US-market sales by 45% this year. Spokesman Peter Grady tells Bloomberg via a leaked memo to dealers

While it’s still early in the calendar year, now is the time to act. Hiring additional personnel in preparation for the spring market is essential for success in 2011.

But aren’t the newly updated Chryslers supposed to sell themselves? Seriously though, the real problem with this plan isn’t simply that it reeks of desperation… it’s that Chrysler is going to have to do more than just increase its number of dealers. After all, isn’t quality as important to a sales force as quantity?

And, as it turns out, the quality side of things isn’t looking great either. According to Grady’s leaked memo

After analyzing our competitors and your 2010 financials, we believe there’s still some work to do. Chrysler underperforms by almost two vehicles per month per salesperson.

There’s no way simply adding more salespeople to the equation is going to change that. Either Chrysler is going to need to adjust its expectations for this year, or you’re going to see the incentives come out with a vengeance despite CEO Sergio Marchionne’s blithe dismissals.

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  • George B George B on Mar 24, 2011

    Does anyone still buy a car because of the salesman? Anyone with intelligence above moron does a little online research at kbb or Edmunds and knows more about the car they're interested in than the guy who happens to be "up" when the potential customer walks onto the lot. If Chrysler cars really are improved, what they need is a promotion that 1) brings potential customers in for a test drive and 2) reduces reliability concerns by offering an extended warranty. Give me a gift card for some store I like in exchange for a test drive and I'll show up. Probably tell my friends about it too. Looked at cars at the local Chrysler dealer last Sunday. Saw improvement, but nothing I wanted bad enough to buy new. Jeep Grand Cherokee and Dodge Durango looked good. Want to see the Ram Cargo Van, the work truck version of the Caravan.

  • Georgie Georgie on Mar 24, 2011

    HA!! The local Chrysler, Dodge, Jeep dealer's franchise just got bought out by a Chevrolet dealer in a neighboring town. (This same Chevrolet dealer recently took over what was once our local Subaru dealership) So now all these nameplates are combined "under one roof" at this Chevrolet dealership. How many potential Chrysler product buyers are going to want to buy a Chrysler, Dodge or Jeep from this "Chevrolet" dealer not to mention having to drive fifteen miles or so in the dead of winter for warranty or service work? I think Chrysler Corp made a bad decision in permitting their existing franchise to be bought out and combined with the Chevrolet - Subaru dealership Perhaps time will tell....

  • Mike Batty Mike Batty on Mar 24, 2011

    Chrysler will never get it right. They have no cars to brag about, just crap. The suv lineup is similar. Their cheap van is just that. The pick up is a distant third and Jeep, well is just that. Suppose it has a following but why I will never know. I hate to put more people out on the bread line but this company is not going to make it. You have to have something to sell. Kudos to GM and Ford for remarkable turnarounds but we may just as well have flushed the loan money down the toilet as give it to this outfit. Hiring more sales people makes no sense whatsoever so at least their thinking is pretty well consistent with the product. And a tiny little bug from Italy is going to save this whole clapboard outfit. Not!

  • John Horner John Horner on Aug 16, 2011

    I would be more focused on the quality of the salespeople than on the quantity of them.