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DaimlerChrysler Struggles to Reinvent Chrysler Brand

September 11, 2003

DaimlerChrysler AG's effort to transform Chrysler into a premium brand will take a number of years, limiting the U.S. carmaker's ability to raise prices, said Joe Eberhardt, head of sales at Chrysler Group, according to Dow Jones Newswire.In an interview at the International Auto Show in Frankfurt, Eberhardt acknowledged "legacy issues" relating to the U.S. carmaker's troubledhistory. Statistically, the company can demonstrate its improved quality, he said. But statistics could do little to change people'sperception."The best proof is if a customer sits in a car and, after three years, doesn't have any problems," said Eberhardt, who took over as head of Chrysler sales earlier this year.There's no quick fix for branding issues, according to Eberhardt. It's because of the brand problem that Chrysler doesn't have the freedom to command prices asked by establishedpremium players, such as BMW, Audi and fellow DaimlerChrysler brand Mercedes, he said, according to Dow Jones Newswire.
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