DSkippy

Looks like Chrysler is chasing the economies of scale and finding new markets to chip away share in to increase total units sold. Hopefully they figure a way to be more profitable in the U.S. market.

[quote]Chrysler sets up new design team
Development groups created for five product lines plus expansion of global engineering tasks.
Eric Morath / The Detroit News

Chrysler LLC overhauled how it will engineer and design its future cars and trucks.

The Auburn Hills automaker announced Tuesday that it will align product development teams along five lines: Jeep, Truck, Car and Minivan, Future Midsize, and Street and Racing Technology, or SRT.

Chrysler will expand its engineering activities in targeted regions, including China, India, Eastern Europe and Mexico, as part of the company's effort to grow globally.



Such a move heightens fears among some Metro Detroit workers that their jobs could be outsourced, but Chrysler says that is not the case.

"It's important not to be insular, and bring outside perspective," Chrysler CEO Bob Nardelli said after speaking at an Automotive News World Congress dinner on Tuesday. "There is a lot of great technology, a lot of great suppliers, a lot of great innovation," in emerging markets.

The automaker also will look to simplify its vehicles with the development of common processes and shared components as it expands engineering.

Chrysler product teams will be aligned along its brands. The Jeep team will focus on the SUV brand; the truck team is responsible for advancing the Dodge truck brand; and the car and minivan team develops Chrysler's full-size cars, the current midsize lineup and minivan products.

In addition, the future midsize product team focuses on Dodge Avenger-sized vehicles for worldwide markets; and SRT continues Chrysler's performance branding with products such as the Dodge Challenger SRT8.

The new divisions more closely line up development teams along the lines of what segment customers shop.

Previously, for example, teams were named "body-on-frame," which included trucks and SUVs, and "front-wheel drive," which included passenger cars.

The realignment does not mean Dodge will explicitly sell trucks or Chrysler would only sell cars, company officials said. Products could still be cross-branded. For example, the Dodge Nitro SUV is based on the Jeep Liberty platform and similar product development processes could continue.

Establishing a core competency within each development team is a smart move -- especially strengthening its midsized products, said Jim Hall, auto analyst with 2935 Analytics LLP.

"If you're going to be in the midsized area you have to make that a global product," he said.

One group Chrysler did not create was a global small vehicle team. Chrysler is reinforcing that it will only enter the subcompact segment as a partner with another automaker, such as China's Chery Automobile Co., Hall said.

Expanding engineering globally is a major shakeup for Chrysler, which has the majority of its development staff in Auburn Hills. It does have engineering staff in Mexico, but does not have such offices in China, India or Eastern Europe.

Only 11 percent of Chrysler's 2007 sales were outside North America, but the company says increasing that number is key to becoming profitable.

Chrysler officials say the intent of the realignment is to strengthen global engineering and not to move jobs outside the United States.

Still, outsourcing of work is "absolutely" a concern for unionized engineers at Chrysler headquarters, said Jeff Hagler, president of United Auto Workers Local 412, which represents designers and engineers. He said he hasn't been briefed on the details of the new alignment.

"I've asked for a meeting to discuss the futures of workers in the engineering facility," Hagler said. Late last year workers in his local were targeted for layoffs that were later rescinde