Chrysler sale could bode well for future products(20 new models by 2009)
#1
Chrysler sale could bode well for future products(20 new models by 2009)
Imperial Dreams
Chrysler sale could bode well for future product
By BOB GRITZINGER
AutoWeek | Published 05/15/07, 1:25 pm et
Cerberus Capital Management’s $7.45 billion purchase of Chrysler likely means an influx of cash that will open the product pipeline at the Auburn Hills, Michigan-based automaker.
The private equity group’s purchase of 80.1 percent of Chrysler—current owner Daimler will retain a 19.9 percent stake—is expected to be finalized in the third quarter this year. By then, the 2008 Dodge Challenger will be less than a year from introduction, and other well-received Chrysler concepts from the past two years should be in line for the production green light.
“As a private company, Chrysler will be better positioned to focus on its long-term plan for recovery, rather than just short-term results,” said Chrysler CEO Tom LaSorda. “It will allow Chrysler to renew its focus on what has always made us special—our passion, creativity and commitment to delivering exciting Chrysler, Jeep and Dodge vehicles.”
Chrysler spokesman Rick Deneau said the company expects to continue to invest in future product as planned, despite cutting up to seven nameplates from the current 32-model lineup as outlined by LaSorda in February. All indications are that the new owners of Chrysler intend to follow LaSorda’s lead while investing even more in future product.
“These folks have seen our product lineup, and they’re quite bullish on it,” said Deneau.
Chrysler plans call for 20 new vehicles and 13 major facelifts by the end of 2009, despite reducing the company’s platforms from 12 to seven. Besides the highly anticipated Challenger, products already in the pipeline include the fifth-generation Chrysler minivan due later this year, Chrysler Sebring/ Dodge Avenger-based crossovers and the next-generation Ram pickup. Cut from the portfolio will be the Dodge Durango/ Chrysler Aspen, once the plant that produces the slow-selling big utes is shuttered in late 2009.
That leaves the dream cars to consider, from the big flagship Chrysler Imperial that debuted at the Detroit auto show in 2006 and the minicar-based Dodge Hornet shown at Geneva that year to the Dodge Demon roadster that bowed at Geneva in March ’07.
While no production decision has been formally announced on the Imperial, rumblings surrounding the Chrysler sales talks suggested that the big luxury liner was just the kind of vehicle needed to spark interest in the brand from wealthy venture capitalists. Now that private investors are at the helm, it may be only a matter of time before the Imperial gets the go-ahead.
Meanwhile, Chrysler and its Chinese partner, Chery Automobiles, are reported to be putting the finishing touches on a production Hornet that will be sold in China and the United States, as well as other global markets. The B-segment car is similar in size to BMW’s Mini. Chery also is the likely partner to provide underpinnings for the Demon, an inexpensive Mazda MX-5-sized roadster.
A familiar name likely will play a key role in shaping Chrysler’s product development plans: Wolfgang Bernhard. The former Chrysler chief operating officer—famous for riding a Viper-engined Dodge Tomahawk motorcycle onstage at the 2003 Detroit show—is now an advisor at Cerberus after a stint at the helm of Volkswagen. If anyone knows how to inject excitement into Chrysler products, it’s Bernhard. We’ll have to wait and see whether his idea of exciting product includes coddling Chrysler’s new owners’ Imperial dreams.
Chrysler sale could bode well for future product
By BOB GRITZINGER
AutoWeek | Published 05/15/07, 1:25 pm et
Cerberus Capital Management’s $7.45 billion purchase of Chrysler likely means an influx of cash that will open the product pipeline at the Auburn Hills, Michigan-based automaker.
The private equity group’s purchase of 80.1 percent of Chrysler—current owner Daimler will retain a 19.9 percent stake—is expected to be finalized in the third quarter this year. By then, the 2008 Dodge Challenger will be less than a year from introduction, and other well-received Chrysler concepts from the past two years should be in line for the production green light.
“As a private company, Chrysler will be better positioned to focus on its long-term plan for recovery, rather than just short-term results,” said Chrysler CEO Tom LaSorda. “It will allow Chrysler to renew its focus on what has always made us special—our passion, creativity and commitment to delivering exciting Chrysler, Jeep and Dodge vehicles.”
Chrysler spokesman Rick Deneau said the company expects to continue to invest in future product as planned, despite cutting up to seven nameplates from the current 32-model lineup as outlined by LaSorda in February. All indications are that the new owners of Chrysler intend to follow LaSorda’s lead while investing even more in future product.
“These folks have seen our product lineup, and they’re quite bullish on it,” said Deneau.
Chrysler plans call for 20 new vehicles and 13 major facelifts by the end of 2009, despite reducing the company’s platforms from 12 to seven. Besides the highly anticipated Challenger, products already in the pipeline include the fifth-generation Chrysler minivan due later this year, Chrysler Sebring/ Dodge Avenger-based crossovers and the next-generation Ram pickup. Cut from the portfolio will be the Dodge Durango/ Chrysler Aspen, once the plant that produces the slow-selling big utes is shuttered in late 2009.
That leaves the dream cars to consider, from the big flagship Chrysler Imperial that debuted at the Detroit auto show in 2006 and the minicar-based Dodge Hornet shown at Geneva that year to the Dodge Demon roadster that bowed at Geneva in March ’07.
While no production decision has been formally announced on the Imperial, rumblings surrounding the Chrysler sales talks suggested that the big luxury liner was just the kind of vehicle needed to spark interest in the brand from wealthy venture capitalists. Now that private investors are at the helm, it may be only a matter of time before the Imperial gets the go-ahead.
Meanwhile, Chrysler and its Chinese partner, Chery Automobiles, are reported to be putting the finishing touches on a production Hornet that will be sold in China and the United States, as well as other global markets. The B-segment car is similar in size to BMW’s Mini. Chery also is the likely partner to provide underpinnings for the Demon, an inexpensive Mazda MX-5-sized roadster.
A familiar name likely will play a key role in shaping Chrysler’s product development plans: Wolfgang Bernhard. The former Chrysler chief operating officer—famous for riding a Viper-engined Dodge Tomahawk motorcycle onstage at the 2003 Detroit show—is now an advisor at Cerberus after a stint at the helm of Volkswagen. If anyone knows how to inject excitement into Chrysler products, it’s Bernhard. We’ll have to wait and see whether his idea of exciting product includes coddling Chrysler’s new owners’ Imperial dreams.
#3
I want to see what chrysler will be doing with their concept coupe/supercar?
I forgot what it's called but it's nice!
I hope they improve their jeep division...and somehow someway tell their service department to be more competent and treat their customers better.
I forgot what it's called but it's nice!
I hope they improve their jeep division...and somehow someway tell their service department to be more competent and treat their customers better.
#4
Originally Posted by Chrysler CEO Tom LaSorda
“It will allow Chrysler to renew its focus on what has always made us special—our passion, creativity and commitment to delivering exciting Chrysler, Jeep and Dodge vehicles.”
Blah blah blah blah blah. Your mouth is moving, but nobody's listening. Comments like these are so... "CEO". If you had passion, creativity and delivered exciting vehicles, you wouldn't be in this mess.
#5
#7
My point was aimed more towards the future of vehicle development rather than the short term.
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#9
My recent employer just got bought by a private equity firm and I agree that having bean counters running operations can be a problem. However they can also cause change for the better by tearing up the "old"/"usual" way of doing things. Removing non-value add steps in processes. For a car company let's hope they realize the value of design and engineering and remove a lot of the other costs that need trimming.
#10
Chrysler does need a new line-up of cars.
Other than the 300 and Sebring, Chrysler is pretty forgettable.
Having new models will help. They need a subcompact, need something along with the PT Cruiser for a compact, something along with the Sebring for a midsize, 300 is fine as their full size sedan. The Crossfire sucks, so a couple different coupes will help the image. I haven't even seen an Aspen or Town&Country in L.A, so their SUV/minivan/crossover vehicles need to be rehauled and resigned.
Beyond that, Chrysler needs to focus on other things beyond their model lineup.
Other than the 300 and Sebring, Chrysler is pretty forgettable.
Having new models will help. They need a subcompact, need something along with the PT Cruiser for a compact, something along with the Sebring for a midsize, 300 is fine as their full size sedan. The Crossfire sucks, so a couple different coupes will help the image. I haven't even seen an Aspen or Town&Country in L.A, so their SUV/minivan/crossover vehicles need to be rehauled and resigned.
Beyond that, Chrysler needs to focus on other things beyond their model lineup.
#11
My bet... the 300C, Charger, Magnum, Challenger, Imperial (assuming it also has last gen E-Class underpinnings and 5-speed), will mark the modern golden-era of Chrysler. After this, is the inevitable return to sub-sub-par auto-manufacturing.
#12
And 20 new models? I wonder how many of those will be rebadges.
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