Jan. 7 (Bloomberg) -- Chrysler LLC, the third-largest U.S. automaker, said its sales outside North America rose 15 percent to a record last year while deliveries in its home market fell.

Overseas sales totaled 238,218 vehicles, bolstered by demand in the Middle East, the Auburn Hills, Michigan-based company said today in a statement. Chrysler's worldwide sales dropped less than 1 percent, including a 3.1 percent decline in the U.S.

Expanding overseas is a priority for Chrysler, which lost global ties after being sold by Germany's DaimlerChrysler AG in August. Chrysler draws about 90 percent of its volume from buyers in the U.S., where analysts project sales will shrink for a third straight year in 2008.

``It's good that they are showing some growth in international markets, but they have a really, really small presence,'' said Erich Merkle, an automotive analyst for IRN Inc. in Grand Rapids, Michigan.

Chrysler hopes to someday get 50 percent of its total sales from outside North America, President Jim Press said in October.

Every region outside North America posted gains last year. The Middle East/North Africa rose 64 percent to 21,171 vehicles. Western and Central Europe, the largest region, gained 6 percent to 117,675.

The Dodge Caliber, a small hatchback car, was the best- selling individual vehicle, with 30,937 sales.

Chrysler's global sales were just under 2.7 million vehicles in a market that J.D. Power & Associates estimated at 69 million. General Motors Corp., based in Detroit, and Toyota Motor Corp., based in Toyota City, Japan, are competing for the global title; each sells about 9 million vehicles a year.

`Confident' for 2008

``Even though the economic forecasts are somewhat uncertain, we feel very confident we can achieve another record sales year internationally'' in 2008, Press told reporters on a conference call today.

Chrysler worked on expanding and improving its dealer network and offered more vehicles than in previous years, said Michael Manley, executive vice president of international sales.

The automaker's manufacturing capacity overseas is mainly through partners, and Chrysler is seeking more such ventures to expand production without investing in new factories.

Magna International Inc. builds the Jeep Grand Cherokee and Commander and Chrysler 300 sedan and wagon for Chrysler in Austria. The Beijing Benz-DaimlerChrysler Automotive Co. joint venture builds Chrysler 300 and Sebring cars in China.

Chrysler also has joint ventures in China, Taiwan and Egypt to build cars, minivans and sport-utility vehicles. The automaker's only fully owned plant outside North America is in Venezuela, where it produces Jeep SUVs and the Dodge Caliber.

Chery Automobile Co., a Chinese manufacturer, is working with Chrysler on a small car. The U.S. automaker plans to sell Chery cars under the Dodge brand in Latin America, Manley said on the call. He didn't say when that would begin.

To contact the reporter on this story: Mike Ramsey in Southfield, Michigan, at mramsey6bloomberg.net

Last Updated: January 7, 2008 14:17 EST