Jeremiah 29:11

If Chrysler sells, it's not bad


Feb 14, 2007 04:15 PM
David Olive
Business Columnist

While Chrysler Group, based in suburban Detroit, was announcing 13,000 job cuts today, Dieter Zetsche, CEO of parent DaimlerChrysler, was talking exit strategy. "We do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler," Zetsche said.

A Chrysler sell-off needn't be bad news for Southern Ontario's auto sector.

Two of Chrysler's few crown jewels are here — its Windsor minivan plant; and its Brampton plant, which learned just yesterday it will be adding the 2008 Dodge Challenger to its line-up.

Brampton already makes the popular Chrysler 300, Dodge Charger and Dodge Magnum.

Selling Chrysler whole might prove impossible. If there's a yard sale instead, Windsor and Brampton will be among the most attractive assets.

The buyers? Toyota, which has plans for as many as nine new plants in North America, is a likely candidate. So are the Chinese and Indian automakers with nascent plans for cracking the North American market.

Jeremiah 29:11

Let's play the "what if" game.

What if by the time Chrysler is sold off and they have made 30K cars and they are made in North America and now Toyota takes over.

I would think those few (30K) would be very valuable, especially if someone like Toyota took over the rest of the future Dodge Challengers.

Can you imagine a Dodge Challenger made my Toyota? I was just getting used to the Germans making it and now I may own a Japanese Dodge Challenger.

A pocket rocket Dodge Challenger for race drifting. That some how doesn't conjure up good thoughts in my head. Where is the American Muscle?


Sorry, I went too far ahead in time but it is a possibility.

awsure

I am guzzling Pepto just thinking about it. Ughhhhhhhhhhhh....

ED1971PA

I know it's all speculative but I'm thinking that they mean Toyota might buy some of the plants and convert them to make Toyotas and I don't know if anyone else remembers but there was actually a Dodge Challenger made in the 80's which was imported for Dodge by Mitsubishi. In other words, a rice-burner, little, lawn mower, piece of garbage with a Challenger name plate slapped on. What a disgrace. They owe us and themselves to make this Challenger and if they really want to make it up to us they will build a 'cuda or at least a Challenger Convertible lol.

RLSH700

That is about the only thing that would make me loose my interest in the Challenger. I have never been convinced of Toyota's quality, in fact, I've been convinced of quite the opposite. I really, really, really, really, really hate Toyota, I have for years and that will never change. I like Honda and Nissan just fine, but I hate Toyota.

I would like to see Chrysler being freed of Daimler since I am convinced that they both don't know what they are doing and they have no value nor appreciation for how Chrysler helped Mercedes out during their difficult years. Mercedes deserves no credit for any success that Chrysler has had since many of Chrysler's successful ideas would have been made anyways with the less expensive, roughly equal quality parts made by Chrysler and would have looked better. Also Mercedes and their arrogance has stopped Chrysler from making a lot of innovative technology that would blow everyone away just because they envy the fact that Chrysler is more talented than they are.

There have been a couple of companies that have been discussed for merging with Chrysler: GM, Ford, and Renault-Nissan.

GM: It would either be a great success or a great failure. Lutz (currently at the top of GM) was responsible for a lot of good looking products such as the Intrepid. I'd love to see his touch be returned to Chrysler's line-up. Chrysler has what GM needs. Potentially the best V6s, innovative spirit, a segment maker, competitive in the car department, divisions with the right marketing segments to compete directly with all the Japanese. They just need Lutz's touch to make it work.

Ford: Ford has the potential of being extremely competitive again, they just lack the powertrains and something called styling in order to do it. Chrysler has the V6 and V8 engines and transmissions that Ford needs to pull this off. Chrysler needs Ford's inventory of class leading platforms from all the companies they own and some of the best interior, and a super reliable I4. Ford's ownership of Mazda could do amazing things to Chrysler's V6 line-up. Chrysler's platforms were good but now no thanks to Daimler, they are stuck using over priced MB platforms or Mitsubishi.

Renault-Nissan: I really don't see the angle for this idea. They have the same strengths (good V6s and V8s, styling) and weaknesses (needing better I4s, bad interior). The only thing I can see is Nissan would benefit from having Chrysler's 6-speed autos over their CVTs, but they don't get it that CVTs are a bad idea, and Nissan has good platforms but they are also expensive.

ED1971PA

On Fox News yesterday, Neil Cavuto mentioned the rumor that GM and Chrysler might merge.

Jeremiah 29:11

Gosh, it always takes a while when 2 corporate gianst merge to make things happen and sometimes it get worse before getting better.

Remember HP and Compaq........after several years they are now beating Dell but it got worse before better and American car companies can't afford to do that.

RLSH700

It all depends on how well the management does their job. In the past, GM has done a lackluster job on managing the companies they have bought out and haven't utilized their technology as they should. I think however that Lutz is different in this aspect.

Jeremiah 29:11

After HP was getting sued by one of the Packard family members, processes were put in place to speed the joining of the companies and become very focused.

GM or whomever's managment will have to make sure that the merger is firing on all cylinders? A lil car humor.

RLSH700

The only thing that I can see wrong with GM running it is if they just make Chrysler group into clone cars like they have done with Saab. GM would be wise to utilize Chrysler's engines since GM still doesn't have a good 4 valve per cylinder OHC engine. They need the 3.5L from Chrysler and the HEMI.