Chrysler completely reorganizing product development strategy
Chrysler, LLC has announced that it's streamlining its product development process. For an as-yet-unnamed mid-size vehicle, Chrysler is creating a sort of central HQ that will house "every facet from design and marketing to engineering, including multiple dimensions within engineering including ride quality, interiors etc.," according to CEO Bob Nardelli. This new system replaces the old one where a number of departments spread over many geographical areas were utilized. The new program will have its own facility and be charged with creating mid-size cars for global markets, so we can perhaps expect the fruit it bears to be replacements for the Dodge Avenger and Chrysler Sebring.In addition to that, Chrysler is creating global, centralized "centers of excellence" for each of its brands to raise the standard of the products it already has out. To be located in countries like Mexico and China, these localized development centers sound as if they'll be like the design studios set up in SoCal by import manufacturers to take advantage of the talent pool and track trends.
All of Chrysler's product development talent will also be grouped into five teams from now on: Jeep, trucks, cars and minivans, mid-sized vehicles for global markets, and street and racing technology (SRT) performance products. The purpose is to group developers together who would be charged with design and innovation, which would ultimately increase parts sharing among their respective vehicles. If all goes according to plan, we'll see Chrysler products with cutting edge designs and vastly improved interiors in the near future. Here's hoping...
[Source: Auto News, sub. req'd]
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Reader Comments (Page 1 of 2)
Edsel 4:36PM (1/23/2008)
LOL! So now, they've put the deck chairs in a big circle.
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Rick 5:31PM (1/23/2008)
"In addition to that, Chrysler is creating global, centralized "centers of excellence" for each of its brands to raise the standard of the products it already has out. To be located in countries like Mexico and China, ..."
Anyone else see the issue and formula for failure here? Raising the standards in China and Mexico instead of getting it right domestically? Not like Mexico and China are the hot beds of innovation and award winning, unique designs. I guess Chrysler had enough with Germany's help in design?
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RamSport47 5:46PM (1/23/2008)
"Anyone else see the issue and formula for failure here?"
Just those of you who really want them to fail
luv2bngya 6:09PM (1/23/2008)
Using designers in emerging markets may also be beneficial in the domestic market...see: Buick Riviera concept
Just something to consider before you flame. Not to mention those markets are the only think keeping the domestic automakers afloat right now.
gforce 8:49PM (1/23/2008)
As luv2 mentioned the Riviera concept shows what the Asians studios can do - here's a reference:
http://www.thecarconnection.com/Car_Shows_and_Concept_Cars/Concept_Cars/2007_Buick_Riviera_Concept.S283.A12241.html
whofan 4:57PM (1/23/2008)
I`m hoping Chrysler can right itself. I love the Chrysler vehicles I`ve owned. Their styling and interiors whent down hill when Diamler took over.
I find the unique vehicles Chrysler offers to be nice choices. Chrysler in the late 90`s was on a great track only to be derailed by stupidity.
I find more on Chryslers lots that I like than many of the other automakers.
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Blacksabre 5:07PM (1/23/2008)
Yup...taking advantage of the talent pool in Mexico and China is a huge step.
:cracks up:
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Reality Check 10:36PM (1/23/2008)
I am just shocked at people that can't read! Each part of the world will have its own team. Right now the States offer the best value with the deflated dollar. Canada may be out of the car business with their high health taxes and Mexico is getting just as bad. I hope people realize that if any of the American car companies goes under now we will have a recession that will leave its mark on everyones rear end.
L.WOOD 5:17PM (1/23/2008)
Call me puzzled about how Chrysler can create centers of excellence in Mexico and China. As we all know Mexico's strong suit is sending illegal immigrants to the U.S., and China specializes in putting too much lead in their paint. So is it Chrysler's plan to find the best and brightest from around the world and have them live in Mexico and China while participating in centers of excellence? Better to locate these people in environments that are already excellent so they can learn how it happens.
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friko 7:09PM (1/23/2008)
And immigration is mentioned here because...?
Stop being a jerk racist.
notYou 9:45PM (1/23/2008)
friko: [illegal] immigration and race have nothing inherently to do with one another. Looks like you're the racist, jerk.
caddy dave 5:23PM (1/23/2008)
Funny how plain old initials can play on ones perception of power. SRT. Power. Hemi power. Arrrrggg.
TURD. Oops! Typo. (not really) TRD. Snapping camshafts. Phoney commercials. TRD. Excrement.
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Rick 11:24AM (1/24/2008)
I guess I have to explain myself. China is currently blackeyed as being a knock off design culture. Everything gadgets to cars, they can't seem to be original. Mexico? Well it seems some cars (won't say all) have more issues when built in Mexico as opposed to US, German or Japan built. Granted, I'm generalizing, but combine poor design with poor building quality and I summized it was a recipe for failure.
Frank 9:17PM (1/23/2008)
This sounds a lot like the system Chrysler had in the 90's to develop cars, which they adapted from Honda. They also had a relationship with their suppliers that was likened to an American version of the Japanese keiretsu.
Maybe Tom Gale has been whispering in the ear of Nardelli. I would just hire Gale, Caistang, Pawley, Stallkamp, and anyone else from that era as advisors to help me bring back the mojo they had in the 90's. Too bad Lutz is not available anymore.
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airport krishna 9:28PM (1/23/2008)
Chrysler let Freeman Thomas slip away to Ford a few years ago and they've lacked design magic ever since. This lackluster series of showings at world auto shows has demonstrated a design deficit that's not easy to recover from.
You can team plan cars with all the six sigma ninja forces possible yet absent design magic there isn't anything for consumers to crave.
GM did team planning for years and produced some of the most anonymous cars consumers ever ignored.
I'll believe Chrysler has a plan when they produce magical cars and Jeeps and trucks, not until. No team plan will get them there... but they'll sit around in conference rooms and convince themselves they've got it figured out.
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JBarrax 10:09PM (1/23/2008)
As Frank pointed out, they've done this before. If I remember correctly, that's how the Viper came to market. It was a streamlined process where a small team of managers pooled talent and got parts suppliers in on the early stages. Nothing new here.
And that b.s. about developing "centers of excellence" in Mexico and China is just marketing spin for "we're going to hire the cheapest labor we can find". Just what one would expect of a corporation run by a private equity firm.
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Reality Check 10:43PM (1/23/2008)
After seeing the interiors in all of their new cars I would take made in China or Mexico any day of the week. I still buy American owned cars because I never had any problems with them but the interiors have been average at best. My CTS has been a pleasure to sit in and I hope Chrysler has bought a few to copy for their next 300.
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Reality Check 10:49PM (1/23/2008)
Hey Lutz is doing a good job at GM! I am very happy with my last GM car and Tahoe and I am thrilled that someone figured out you spend all your time on the inside of a car so you should do your best job in there. The only problem with Lutz is he is getting up there in age I hope he makes it to a 100 just like Shelby might. Both of them show that you don't throw out good people for age or ask them to retire (FORD).
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Jon 10:03AM (1/24/2008)
Chrysler already has plants in Mexico and vehicles soon from China (Demon). It only makes sense to have design centers there too.
@gforce - agreed.
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John 6:00PM (1/24/2008)
I went to the auto show (St. Louis) last night, and was really disgusted by how bad the interiors on Chrysler products were. The Kia display was across from Chrysler, and the interior quality of the Optima blew the Sebring out of the water. Every other manufacturer there had better quality interiors than Chrysler
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