Behind the scenes at a Cerberus-owned Chrysler
With Cerberus Capital Management just about to wrap up its purchase of Chrysler Group, it's interesting to see what the private-equity firm has in store for the No. 3 U.S. automaker. This Detroit News article shows very clearly that Cerberus isn't about to sit back and wait for results. In fact, Cerberus consultant/Chrysler head Wolfgang Bernhard is already taking the bull by the horns and doing what he does best, pushing edgy design and controlling costs. A good example was the final review for the Chrysler Imperial. He walked into the room and simply stated, "That car will never see the light of day." And that was that. Bernhard knows what he likes and doesn't like, and he'll make decisions like that on the spot.
Many think it was a good decision, but it's important for Chrysler to decide in what direction it wants to go. Edgy is good, but only if it fits into a cohesive corporate image. The Imperial didn't, and apparently at least one other current product doesn't seem to fit any longer either. It is believed that the PT Cruiser will be dropped at the end of its product cycle. Instead of offering such nice-but-niche vehicles, the company will instead focus on their core products, like the 300 and Ram replacements.
It sometimes seems obvious to us enthusiasts, but the main focus should be on vehicles that people actually want to buy. That can get lost in the shuffle when a company is too focused on the enormous costs involved in developing new models and new platforms. So Cerberus will help Chrysler get a grip on the basics - purchasing, manufacturing, product development and sales and marketing. From there they can try to add some zip back into the lineup and recapture the public's attention with fun and desirable product.
Click the Read link to learn more about the ways Cerberus plans to get Chrysler back on track, including expansion into other world markets. It's a good read.
[Source: The Detroit News]
Reader Comments (Page 1 of 2)
Frank 6:46PM (8/02/2007)
He walked into the room and simply stated, "That car will never see the light of day."
Wolfgang is my new hero.
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Tool 10:14PM (8/02/2007)
Chrysler | BOLD MOVES
Brad 11:37PM (8/02/2007)
I agree. When I saw that quote I said "Thank God"
Drewboy 10:01AM (8/03/2007)
Sounds like they've finally found a LEADER for Chrysler!
Roger 6:46PM (8/02/2007)
PT cruiser came out in 2000. What product cycle? 10 years is not a cycle its two cycles and a half.
The PT cruiser is a good product just needs an update. Imagine having the 2.7 V6 under that long hood. It would be awesome. Better than the harsh 2.4 2 balance shaft unrevving noisy engine in there now.
PT cruiser should not be discoed. It should get a complete redesign with the 2.0, 2.4 and the 2.7 V6 as option.
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Adam500 6:49PM (8/02/2007)
I agree keep the PT Cruiser but redesign it. The PT Cruiser still sells well and of all the vehicles sold by Daimler Chrysler, the PT Cruiser has the lowest fleet sales apart from the Jeep Wrangler. There is a niche for this vehicle. But when you neglect it and it goes sour it doesn't mean throw the baby out with the bath water.
Cecil 6:55PM (8/02/2007)
Anyone see a similarity with the PT Cruiser and the old Taurus? Neglect it, then wonder why no one is buying, then think its a marketing problem and not the product, then throw money at it with no result, then kill it off because not worth investing in it. Then take an early exit from the office and head for the golf course.
whofan 8:34PM (8/02/2007)
I wouldn`t want a 2.7 under the hood either unless they fixed it. Lots of Dodge Intribits for sale on Ebay cheap with blowen 2.7 engines. Oiling problems.
The PT cruiser is a good product for Chrysler. The cruiser even inspired GM to ride the wave with the HHR.
Does Bernhard really know the American car culture?
Too bad Lee Iaccoca wern`t 40 years younger,thats the type of manager Chrysler needs once again now.
Dropping the ugly Imperial was a given.
John R 6:57AM (8/03/2007)
I heard about the oil problems. That's why I switch to synthetic. I have 80k+ miles on that car with no problems...from the engine. The transmission, however, is another story that I don't feel like getting into...
That what they need to work on.
MikeW 11:15PM (8/04/2007)
It would be a lot of work for an old, low tech engine.
No variable valve timing, no lift scaling system, no cam switching system.
All it has is variable resonance.
The original big problem was insufficient oil, and poor thermal management, all but necessitating synthetic oil for the engine. The rear drive cars (LX) now have 6 quarts of oil & an oil cooler.
Chrysler would be better off with the world 1.8,2.0,2.4. Skip the 1.8-no balance shafts. Maybe a nice 6 speed (4,8,12,16,20,24mph /) stick for the 2.0, and the CVT & 2.4 (with a proper manumatic gate to manually control the variator ratios)
and then maybe the turbo versions of the 2.0/2.4.
RC 7:10PM (8/02/2007)
the pt cruiser like the 300 are dead in the water designs, sure its cool when it first comes out, but how much did they/will they change the 300. They went for a certain look, but how much can that look really change, i dont see it going anywhere.
they have a lot of work ahead of them
caliber is a joke
avenger is just terrible
the ram is garbage
the "hemi" marketing campaign is getting old and laughable
good luck
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Hayward 7:15PM (8/02/2007)
I dont know about your Ram is garbage comment.
Its better than the Fseries by far. I own two Rams a 1500 double cab Hemi and a 3500 regular cab Dualie with the Cummins and they have both been powerful dependable and flawless. Cant say that about Ford.
Its Chevy, Dodge, Toyota then Ford in my books. Titans ok too but not my kind of truck
Jon 7:29PM (8/02/2007)
@ Hayward:
I'll agree with you that the new GM trucks are the best, but that is where it stops. I'm not sure how you put anything behind the Tundra, much less the Ford instead of the Dodge.
Ryan J. 7:13PM (8/02/2007)
I have an idea to help out Chrysler... sell cars. I know, it sounds crazy, but I have a local Dodge dealer that has a NEW 2005 Magnum R/T and wants MSRP for a car that is three years old. Cut your losses and sell the damn thing for what it's worth. Decisions like this are costing Chrysler everyday. What a bunch of morons...
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HotRodzNKustoms 7:43PM (8/02/2007)
All I have to say that they have at least an extra 5 sales that they would not have had otherwise thanks to the new warrenty. Which by the way also applys to new 2006's.
Not to mention I don't agree with what RC said. The PT and 300 are not dead in the water designes. Just look how the Viper, a car that a total redesign would destroy, has evolved so nicely over the years. The PT just needs a new, but still recognizable, more agressive design along with a new platform and engine choices. The 300 just needs to evolve like the Viper has. A car that is recomended by car magazines as one of the "10 Best" year after year after year is not a car you just go and throw in the trash because you think your customers want you to build them a car as boring as a Toyota Camery (sorry Toyota fans but it's true). Bob Lutz said it himself when talking about the new Malibu. He said something like Though people are happy buying boring cars from our competition. They will not buy boring cars from us. And I'm sure that applies to Chrysler as well.
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Horst 8:02PM (8/02/2007)
Am I the only one that dare note the emperor has no clothes? What exactly has Bernhard actually accomplished in other than get himself to the position he is in now? His track record is mediocre at best. Slash and burn cost cutting edicts are simple to make, simple to calculate and easy for the media to pick up on. Creating must have product is a little bit harder. Creating a winning culture within a company harder still. So far he's proven he can cut costs (or at least force the engineers below him to figure out how to cut the costs he's promised in the media). On the product side what's his track record? Looking at just his stint at Chrysler: the Crossfire was a total misfire, the Commander is a dud, the re-designed Grand Cherokee failed to gain traction, the Compass and Patriot further water down the Jeep brand (and smacks of indecision, one of them should never have seen the light of day), the Magnum wagon is collecting dust on dealer's lots everywhere, the Nitro is a half backed late entry into the mid sized SUV market for Dodge... should I go on? All of these products were approved by or at least fostered by Dr. Z and his sidekick Wolfie while they were pillaging over in Auburn Hills. The only bright spot in the whole mess was the 300C-- a car that was conceived prior to Bernhard's arrival. Cerberus bought a company that was stripped of cash by Daimler, and then stripped of talent by the cost cutting buyouts of experienced engineers and managers. What's left is a shell of a company that has too few resources to handle the product line-up it needs in order to survive. Talk to any employee at Chrysler that does not have a PR team and you will hear that engineers are overworked and managers have too many projects to oversee. The result is a workforce that is constantly putting out fires and pushing product out the door before its ready. Sure this is not all Bernhard's fault, but he was certainly part of the problem.
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whofan 8:42PM (8/02/2007)
"the Commander is a dud, the re-designed Grand Cherokee failed to gain traction, the Compass and Patriot further water down the Jeep brand (and smacks of indecision, one of them should never have seen the light of day), the Magnum wagon is collecting dust on dealer's lots everywhere, the Nitro is a half backed late entry into the mid sized SUV market for Dodge... should I go on? All of these products were approved by or at least fostered by Dr. Z and his sidekick Wolfie while they were pillaging over in Auburn Hills."
I agree, The chopped top look ruins many models in Chrysers line up. The 300 and maybe the Pacifica are the only exceptions.
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dakota 9:15PM (8/02/2007)
"I wouldn`t want a 2.7 under the hood either unless they fixed it. Lots of Dodge Intribits for sale on Ebay cheap with blowen 2.7 engines. Oiling problems"
Wow haven't we not done our homework. Chrylser isolated the problem to the crankcase ventilation system which was letting hydrocarbons break down the additives in the oil causing sludge to build up in the engines. This problem has not appeared in the LX cars and they've been on the road since early 2005. Also the car that you're referring to is INTREPID.
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Frank 9:24PM (8/02/2007)
Hey Whofan I got a Dodge Intribit for sale real cheap. lol
To further Dakota's comment the sludge problem was ONLY in the LH cars. Sebring convertible? No problem. Charger, Magnum, and 300? No problem. In these other cars, this engine is routinely turning 200,000 miles.
Next thing you know someone wll say all the Chrysler transmissions break down and the 300 and PT Cruiser are just derivatives of the K car.
whofan 10:01PM (8/02/2007)
Thanks for the spelling correction- Intrepid.
"I wouldn`t want a 2.7 under the hood either unless they fixed it."
What part of "unless they fixed it" did you not get?
By the way our 99 Voyager is the best vehicle we owned. I don`t have a problem with Chrysler. I like their 3.3L engine a lot better.