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UPDATE 1-Chrysler to boost marketing amid product push

Published 02/06/2011, 07:29 PM
Updated 02/06/2011, 07:32 PM

* Chrysler boosts '11 ad spending by 68 pct- dealers

* Project Genesis more than 90 pct done- executive

By Deepa Seetharaman

SAN FRANCISCO, Feb 6 (Reuters) - Chrysler Group LLC plans to sharply increase its advertising spending and is on track to complete its Project Genesis restructuring and product development initiative by the end of the year, dealers and company executives said on Sunday.

The automaker managed by Fiat SpA plans to boost its 2011 spending on advertising by 68 percent in 2011, two dealers said after a franchise meeting at the National Automotive Dealers Association annual convention at San Francisco's Moscone Center.

The push comes as Chrysler delivers its product lineup of all-new or redesigned vehicles to dealer showrooms in the first quarter. Its 16 updated vehicles are the company's bid to win back jaded consumers who have written off its products.

Marketing the new cars will be a key part of turning public perception about the company's offerings, the dealers and company executives said.

Chrysler bought a two-minute advertisement during the Super Bowl football game, the most-watched U.S. television event of the year.

"We're spending money on marketing to seat the product in the customer's mind," said Peter Grady, vice president of network development and fleet for Chrysler.

A Chrysler spokesman declined to comment on the precise percentage increase.

About 40 percent of dealer stock is the 2011 vehicles, Chrysler sales chief Fred Diaz said in an interview Saturday.

Grady also said Chrysler was on track to complete its Project Genesis initiative, the company's plan to encourage dealers to create "superstores" for its four brands, in 2011.

He said the plan was more than 90 percent complete.

(Reporting by Deepa Seetharaman; editing by Gunna Dickson)

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