Cerberus isn't wasting any time teaching its new elephant to tapdance. Just days after closing the deal, taking over Chrysler and bringing Robert Nardelli on board, Cerberus has earmarked $3 billion for new powertrain facilities, indicating some level of its desire to steward the brand back to strength. Work has started on three engine plants that will build a new family of V6 engines incorporating the fuel-saving multi-displacement system. Ground has also been broken on a transmission plant that will build a new dual-clutch unit co-developed with Getrag, as well as an axle plant that allows an efficiency gain due to Mercedes technology.
Frank Klegon, executive vice president of product development, cited Cerberus's ability as a private company to quickly put decisions into action. The move speaks to an awareness that product is key to a return to profitability. The new engines and axles will improve performance, but more importantly in light of CAFE requirements, they'll boost efficiency. Putting better parts into their current model lineup is one thing, but Chrysler desperately needs some compelling new product (as good as the new Sebring is, it's about as exciting as a bowl of un-set Jell-O) to really deliver the needed shot in the arm.
[Source: Automotive News - sub req]
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Reader Comments (Page 1 of 1)
felipe @ Aug 10th 2007 11:55AM
" Putting better parts into their current model lineup is one thing,"......
who said better parts? those who know mr bob, know that suppliers in China will be getting a wind fall of PO's .
georgejetson @ Aug 10th 2007 12:21PM
Those Phoenix V6 engines, which incidentally will be spawning V8s and V10s too, are definitely better parts.
wally @ Aug 10th 2007 1:26PM
Also, they will be used on Mercedes with premium modifications( Valves, heads,etc) !!!
Castle @ Aug 10th 2007 12:22PM
Brands that have previously separated from DCX have done good, so it gives Chrysler some hope.
Mitsubishi Motors, who has drowning in debt and loses became profitable immediately after they split from DCX; they have huge hits in Japan like the iCar.
The meteoric rise in Hyundai was immediately after they bought back their stakes from DCX(which previously owned 10% of the company).
wally @ Aug 10th 2007 1:27PM
icar AKA smart !!!!!
TriShield @ Aug 10th 2007 12:34PM
Styling, product planning, interior design/quailty and brand positioning needs help too.
I don't doubt that Chrysler employs real talent, they need people in charge that can let that talent loose to produce a line of vehicles people want to buy.
tikirob @ Aug 10th 2007 12:37PM
They need to do something. I am glad to see the forward movement but I will wait and see if they keep it up. They need to make quick changes now.
Rob
http://movie-cat.com
RicardoHead @ Aug 10th 2007 12:42PM
Awesome. Glad to know they are doing something, and committing quickly. It gives a lot of hope.
Nardelli or not, the key is to move fast, invest in new and better components, and get better end product out the door faster and at a good price. Cerberus green-lighting significant investments early on does show they understand this, and I suspect that those who are moping about this investment previously moped about the lack thereof.
Mopers will be mopers, afterall.
But they wont' be Mopars!
(I know, I know ... lame) :P
Albert @ Aug 10th 2007 1:03PM
Please just give us a true 6 speed automatic on all your cars and I would be happy. A 6 speed is fine when paired to less powerful engines. A 4 speed is not.
fordman @ Aug 10th 2007 1:09PM
Albert, Chrysler was always the last to get on board with transmission technology. They have always and always had the worst transmissions both in technology and reliability. They had 3 speed automatics on new cars upto just a few years ago (Neon and Wrangler) so dont hold
your breath.
As MikeW has said many times, the 6 speed used currently is a 4 speed with 2 over drive gears. The only other tranny with more gears than 4 is the 5 speed Mercedes handed to them.
I agree, Chrysler definitely needs an awesome accross the board state of the art transmission. They should go all out and make three 7 Speeds. One for 200hp or less, one for 200-400hp and one for 400hp and over.
PeterB @ Aug 13th 2007 9:22AM
Not really the last or worse. In the 60-70s Chrysler transmissions were legandary.
The A413 speed auto is also a pretty tough tranny. Yes it was outdated but the 90's, but the Turbo Dodge guys run 300-400 HP through them all the time.
The A604 wasnt a great transmission by any stretch of the imagination, But I would guess at least 20% of these units' "failure" and replacement were simply due to a plugged $150 solenoid pack.
Mechanics simply didnt understand the unit, and instead of servicing the transmission, its a whole lot more profitable to replace the entire thing.
Many shops, including sometimes, Chrysler's own dealers using dextron instead of ATF+3 or +4 shreded many a mopar tranny as well.
Why doesnt anyone harp on Toyota/Aisin's few failures over the years?
Jim Gilliland @ Aug 11th 2007 12:06AM
Fordman, it was Ford that tried to buy Torqueflite 3 speed automatics from Chrysler when Ford could not make a competitive 3 speed automatic. The 727 Torqueflite is generally considered the best automatic transmission ever made. Obviously, in todays market, 3 speed automatics are not going to cut it bu that does not diminish the fact that the Torqueflite was superior to the Ford automatic during that period.
It was also Chrysler that first came out with the first electronically controlled adaptive transmission, albiet it was trouble prone in its early years, mostly due to not using the correct transmission fluid.
Chrysler has been using a 5 speed automatic in its trucks for some time now, Ford?
icu812ru469 @ Aug 10th 2007 1:25PM
Just like the "wildcard" in sports, it's easy to catch #1 if you're #2 or 3, but if you're #10, you have 8 teams to catch up to and unfortunately the 8 teams ahead of you are all good teams. Chrysler is that #10 and unless Ford, GM, Toyota, Honda, etc. are all sleeping, Chrysler is not going to see the light of day any time soon...
Mr. Oak @ Aug 10th 2007 1:57PM
I don't Cerberus bought company with the goal of becoming #1.
They're first concern is a return to profitability. The 300 is a very importany car for them, Same as the CTS is to Cadillac.
The Sebring aka ugly duckling, is not a bad car mechanically. However, Lipo suction, botox should be added to the of possible treatments for this car.
Shrek aka Jeep Compass also needs to be de-uglified.
That and the refinement of the over-all Corporate design theme. Especially Dodge. Not everything wearing the Dodge badge needs to look a RAM truck. While it's okay to have a corporate design theme, you need to stop slapping truck-like noses on your cars.
The Avenger desparately needs to be refined. It just looks unfinished.
The Pacifica, needs a do-over. Younger moms love this thing, Mini-vans are a dying breed. CUVs are the mini-vans of the 21st century.
Besides, the Pacifica fills the Gap between the mini-vans and the Durango. You will regret killing this car. If you must kill something, kill Sherk.
MikeW @ Aug 10th 2007 4:38PM
The Avenger/Sebring sucks, they know it.
GM is finally rolling on the 6 speed automatic front. The 6t40 & 6t45 (made in china, what?) will do wonders for GM.
The 2.4 with 6t40 in the malibu should be quick (16@90-17@85, depending on what size tires, 225/50 18-biggest, 215/60 16-mid sized, 225/50 17 smallest)
About as fast as the 3.5V6 & 4t45, 16@90 in C&D comparo, but with better mileage.
Maybe with a shorter axle ratio (~10%?) than 2.89 will help out the models with the large heavy oversized 18" wheels.
Mercedes already has a high tech V6 (built to different design ideals (fuel cooler!) from the Japanese, they don't have to match the 2gr-fe) so they wouldn't need to partner on the Phoenix engines.
http://www.emercedesbenz.com/Feb06/24WorldPremierOfMercedesCLS30CGI.html
Go Aussie for a 7 speed?
http://www.blueovalforums.com/forums/index.php?showtopic=12633&mode=threaded&pid=168488
Billy Ray @ Aug 11th 2007 11:09PM
"as good as the new Sebring is" ???? Wow, what have you guy's been smoking ?