This is one for you convertible guys.

Dominic Iannuzzi On Dreaming Of A New Chrysler

03.21.07, 9:00 AM ET


Chrysler, Ford and General Motors can only survive if they stop thinking about market share and start thinking about profit margins. Trying to regain lost glory (i.e., high market share) in an industry with so many more players than 20 years ago is outmoded and dangerous thinking.

Chrysler should build what people want, and they should build it well. Stop building cars to fill factories. Don't enter a segment just for the sake of entering it. Only go into it when you have a winner to sell.

It's about product, not market share. It's no coincidence that the four-door Wrangler and the Chrysler 300 Hemi are monster hits. The same will happen with the Challenger, especially if the company comes up with a convertible version.

It's also no surprise that the Compass and the Patriot are duds. And, by the way, no one really cares where the car was built, as long it rocks. And no one cares if it's called a Chrysler, a Plymouth or a Dodge, as long as it rocks. Chrysler should think like car buyers, not car builders.

One more thing: I disagree with your assessment about GM and Ford looking to their overseas units for product. I believe that they are doing the absolutely right thing. For some reason (I suspect turf-protecting and bureaucratic inertia) their American design studios can't come up with a car worth buying.

The Saturn Aura is the best car Saturn has ever sold, and yes, its interior is much nicer than any of the Cadillacs. Also, the G8 will be the best car in Pontiac's history, and probably GM's history. This is how you sell cars with no rebates and little advertising. It's all about the product.

The marketing types and the accountants have convinced the chief executives that people buy cars because of multimillion-dollar ad campaigns and strategic price points. That's complete bull. People buy what makes their hearts pound when they look in the driveway.

With the product GM is putting out, it looks like they finally get it. I'm keeping my fingers crossed for Ford and Chrysler.

 

he makes some very good points

 

He makes some good points; however, he also needs to remember the importance of maintaining a product offering in most categories. Although economy cars are the biggest money makers, not having one can hurt them by not bringing people into the dealerships in the first place. Another fallacy is that Detroit was doing this with SUVs. The problem is fades come and go. It is hard to determine what will be the big money maker next.