Chrysler: world's first bipolar corporation - Dodge Nitro Forum
Chrysler/Dodge/Jeep News Find out the latest scoop here!

 
LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 06-24-2008, 05:54 AM Thread Starter
Super Moderator
 
rickaren's Avatar
 
Join Date: Nov 2006
Location: Indiana
Posts: 22,851
Garage
Chrysler: world's first bipolar corporation

June 24, 2008
Chrysler and reality

DURING the last few decades, Chrysler has been through so many ups and downs that it has sometimes seemed like the world's first bipolar corporation.

It was on the rocks in 1979, when only a federal bailout prevented it from going out of business. Then came the resurgent Chrysler, powered by Lee Iacocca's vision and ego.

Then another slump, followed by a Cinderella-like marriage with the German luxury car firm Daimler. That turned out to be a mismatch, however, and last year, Chrysler was sold off to a private equity firm called Cerberus Capital Management, and fans of the Pentastar began hoping that now Chrysler was freed from the Germans, another resurgence would be on the way.

But that isn't happening - and indications are that Chrysler may in fact be in worse shape than commonly understood. Last month, Chrysler sales fell by a frightening 25 percent. For the year, Chrysler's U.S. car and truck sales are down more than 19 percent, compared to 8 percent for the industry as a whole.

And indications are that worse is yet to come.

Chrysler's main problem is that its sales mix is designed to be 70 percent SUVs and trucks. That made some sense in the go-go 1990s. It makes no sense at all in a world where $4-a-gallon gas is threatening to become $5-a-gallon gas. Chrysler also has too few cars, let alone small cars, that buyers find attractive. Too many of its "different" models are essentially similar vehicles, such as the Dodge Nitro and the Jeep Liberty.

And quality remains a problem. Overall, Chrysler vehicles were rated below average in quality in the most recent survey by J.D. Power and Associates. Embarrassingly, Jeep, Chrysler's most popular brand, was rated lowest of all.

We point this out not - repeat, not - to cast aspersions on the talented men and women of Jeep's Toledo work force, who, after all, can only do so much with what company managers give them.

Most industry experts already thought Chrysler needed to find a merger partner with a complementary inventory, or risk seeing Cerberus sell off the company piecemeal rather than continuing to take what must be sizable losses.

Last week's news makes it that much more urgent that Chrysler CEO Bob Nardelli manage to do that sooner, rather than later. The sad fact is that the full-service, stand-alone Chrysler Corporation of bygone years isn't coming back.

What's important is that those in charge recognize that, and take the necessary steps to make sure that an auto company that can compete in this century continues to exist at all.


LINK:toledoblade.com -- Chrysler and reality

Rick

Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is offline  
Sponsored Links
Advertisement
 
Reply

  Dodge Nitro Forum > Dodge Nitro News & Polls > Chrysler/Dodge/Jeep News

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Dodge Nitro Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
Chrysler LLC Prices New Hybrids Thousands Below Competition rickaren Chrysler/Dodge/Jeep News 0 06-17-2008 09:52 AM
Chrysler LLC Salutes Nearly 200 Dealers That Sold at Least 1,000 Units in 2007 rickaren Chrysler/Dodge/Jeep News 1 04-22-2008 06:25 PM
Chrysler LLC Announces Barrage of New Engineering and Technology Innovations rickaren Chrysler/Dodge/Jeep News 0 04-14-2008 10:48 AM
20 Years of Chrysler Concept Vehicles rickaren Chrysler/Dodge/Jeep News 0 05-25-2007 10:42 AM
Chrysler on Verge of Sale to a Private Firm rickaren Chrysler/Dodge/Jeep News 0 05-13-2007 11:29 PM

Posting Rules  
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome