Chrysler Bets Future on Products
September sales are sputtering. Dealers can't believe the dearth of
showroom traffic. Even a new blitz of rebates has failed to invigorate
demand for an aging lineup of cars, minivans and sport utilities. What's
wrong with the Chrysler Group? In the auto industry, the answer, as
always, is product. Or in Chrysler's case, the lack of it. "I am
probably having one of the worst months I've ever had in 13 years," said
Marc Treiber, a Chrysler dealer in Monroe, N.Y. "Business is just dead
in the water, and it's scaring me."
After an unexpected $1.1 billion loss in the second quarter, Chrysler is
on the spot to break even soon or consider another round of cost-cutting
and job reductions.
Chrysler is paying the price for a product plan that has yielded few new
vehicles, while rival manufacturers have flooded the U.S. market with
fresh models. Since Daimler-Benz AG acquired it in 1998, Chrysler's
passenger car sales have fallen 34 percent. It all adds up to the lowest
U.S. market share Chrysler has experienced in 15 years. "They are going
to have to do something different because what they are doing is not
working," said Mike Lowe, a Chrysler dealer in Jasper, Ga.
(Source: Detroit News)


Car-Based Models Pace Gains in SUV Sales
Love 'em or hate 'em, sport-utility vehicles continue to be the auto
industry's hottest property, and that seems unlikely to change in the
foreseeable future. SUVs of all types--big and small, car- and
truck-based--accounted for about 25 percent of the nearly 11.4 million
new vehicles sold through August, slightly ahead of 2002's pace. That
puts SUVs on track to top last year's 4 million unit record. If it's
any comfort to those who loathe SUVs, more consumers are choosing
car-based crossover models that tend to be smaller and more efficient
than traditional truck-based SUVs. Paul Taylor, chief economist for the
National Automobile Dealers Association, says more consumers are opting
for car-based models that have popped up in recent years, offering the
rugged looks of an SUV and all-wheel-drive. "People are matching up the
style of vehicle that they like with a realistic view of their
lifestyle. Typically, that means they're never driving on anything worse
than a gravel road with some snow on it," he said.
(Source: Chicago Tribune)


GM Names New Design Chief
The executive responsible for the sporty and curvaceous 2004 Chevrolet
SSR convertible sport-pickup will become the sixth design chief in
General Motors Corp.'s history Jan. 1. As expected Friday, GM named Ed
Welburn, 52, who has run GM's truck design studio, to succeed 42-year GM
veteran Wayne Cherry as vice president in charge of design for the
corporation's global operations. Welburn was most recently in charge of
GM's body-on-frame vehicle design studio, which produced the successful
Hummer H2 and Cadillac Escalade. "Ed is the ideal guy to lead GM's team
of talented younger designers," said David Cole, director of the Center
for Automotive Research in Ann Arbor. "He's a fine artist who has
demonstrated excellent skills and is good at leading a team. It's not
easy to lead a group of creative people." GM was not making Welburn
available for comment Friday. Welburn's low-key demeanor will also serve
him well, Cole said. GM has historically been criticized for having an
unwieldy bureaucracy that keeps many good designs from ever making it to
production, but Cherry said a new streamlined vehicle development
process has reduced opportunities for executive meddling. "Most
designers would rather be in the studio than a meeting," he said. "The
world continues to discover how important design is to the customer. It
influences everything they buy."
(Source: Detroit Free Press)

 

Time to get the hell out of Dodge