Chrysler Australia Says Not Part of U.S. Bankruptcy Proceedings

Chrysler Australia Pty. Ltd. says it is business as usual Down Under, as Chrysler LLC’s international operations are not part of the U.S. auto maker’s U.S. Chapter 11 filing.

Chrysler Australia says it will continue to provide vehicles, parts and services to consumers under the Chrysler, Jeep, Dodge and Mopar brands through its network of authorized dealers.

The Australia sales arm has 47 employees on staff and no plans to shed jobs.

Jeep Wrangler among models sold in Australia.

“We are a solid, profitable business and here to stay,” Chrysler Australia Managing Director Gerry Jenkins says in a statement.

“Despite the global economic challenges and the downturn in vehicle sales in most countries, we are one of the top international markets for Chrysler and the leading right-hand-drive market in the world.”

Chrysler Australia reportedly sold 10,000 light vehicles in 2008 and $40 million worth of parts.

Jenkins does not expect to see any impact from the U.S. bankruptcy proceedings.

“The term ‘bankruptcy’ means different things from country to country, and it’s important to understand this Chapter 11 filing does not mean Chrysler is going to disappear,” he says. “Rather, it is a positive step forward in the on-going improvement of the Chrysler organization.

“I’m very excited about the opportunities provided by the strategic alliance with Fiat (Auto Group) and the other changes within our business. I’ve been with Chrysler for 30 of its 80-year history, and the future has never looked brighter.”

The Australian operation is a wholly owned subsidiary of the U.S. auto maker, and Jenkins tells the Melbourne Age newspaper his company is in a healthy financial situation.

“We're very cashed up. We've had tremendous gains over the past three years with regard to improving our market share,” he says. “Improving share in a declining market is quite an accomplishment.”

While Jenkins warns Australian dealers might experience some gaps in showroom offerings as a result of the idling of Chrysler’s U.S. factories for up to two months, he says there are about 4,000 vehicles in inventory that represent some five to six months' stock under present conditions.

Jenkins says Chrysler's 60 Australian dealers are independently owned and all but one operates as multi-brand franchises and will continue trading normally.

“The first thing we did this morning was call all of our dealers,” he tells The Age. “They were all enthused that finally Chrysler was at the crossroads and the (bankruptcy) decision has been made. The path for the future has been clearly identified. It's taken the monkey off the back.”

However, there are some complications in Australia where Fiat-brand vehicles are imported by private distributor Ateco Automotive Pty. Ltd., which has its own independently franchised dealer network.

“Right now, at this point, there is no intention of taking over the wholesale of Fiat product in Australia, but we look forward to seeing if we can collaborate on several issues,” Jenkins says.

Chrysler Australia occupies a building that is also home to Daimler Australia Pty Ltd., which provides back-office accounting and payroll functions for Chrysler Australia.

“In the short term, we don't envisage any changes at all with Daimler,” Jenkins says. “Daimler handles all the background activities. We intend to continue with that relationship.”