Nardelli confirms Chrysler hard at work on new Durango, 300 and Charger
Chrysler chieftan Bob Nardelli sent a letter to "all employees, dealers, suppliers and other stakeholders" to explain what's happening at the smallest of the Detroit trio. Everything done now falls under one of three umbrellas: enhancing the core, which is improving products, quality, and dealer and customer relations; extending the business with new products or by growing existing products into new areas; and expanding the market with global alliances to fill gaps in the product portfolio.
At the bottom line, Chrysler has lowered its fixed costs by more than $3.4 billion, and has also saved money by achieving the lowest warranty claim rate in the company's history over the past 12 months. Some of that savings - and the bridge loan - are being poured into product renewals: Chrysler plans 24 new vehicle launches from now to 2011, including the Jeep Grand Cherokee, Dodge Charger and Durango, and the Chrysler 300.
The push into technologies and segments will commence in part with Chrysler's ENVI electric vehicle program, the new Phoenix V6 engine, and the potential tie-up with Fiat. The Pentastar aims to have one electric car in production by 2010, four in production by 2013.
The Fiat tie-up would give the Italian company a 35% stake in Chrysler in return for Chrysler getting access to Fiat's small car platforms. The deal is still pending some serious due diligence, but no money would change hands, and Nardelli reassures his readers that none of the taxpayer money would go to Fiat. Nardelli also mentions that the union would also give Chrysler a jedi tutor in the area of restructuring, since Fiat only recently turned itself around. Follow the link for the rest of Nardelli's words.
[Source: The Scoop]
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Reader Comments (Page 1 of 3)
Daveman427 10:11AM (1/24/2009)
Some of those 24 new vehicle launches better be small cars. And no, I don't count the Caliber as small.
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Josiah 10:17AM (1/24/2009)
from the post ...
"The Fiat tie-up would give the Italian company a 35% stake in Chrysler in return for Chrylser getting access to Fiat's small car platforms."
Yes, it does say Chrylser.
MemphisNET 10:32AM (1/24/2009)
The Caliber is a fine mini-CUV. But you're right, we need a true Neon replacement.
firstplace 11:22AM (1/24/2009)
this is smoke and mirrors.
Flashpoint 12:37PM (1/24/2009)
The only reasons the 300 and Charger were successful were because they were LARGE AND SPACIOUS and looked good/menacing.
I own a 300.
If Cadillac was still producing large interior cars - rather than chasing Nurbergring German specifications, Chrysler wouldn't stand a chance at all.
Judy Zik 1:26PM (1/24/2009)
What really bothers me in all this is that they have ZERO new product launches coming within 12 months. That is a ridiculously long time for a full line manufacturer to go without releasing a single new product. Especially when their current lineup is as horrible as Chrysler's. Insane.
Mobius_1 10:36AM (1/24/2009)
"lowered its fixed costs by more than $3.4 billion"
Had they started doing that when times were good, like from 5 years ago, they wouldn't be needing a bailout. :) I think what they need to learn from this is always to be active, looking for new ways to trim fat and make new better more desirable products.
Anyways, I hope Chrylser can survive this and emerge a better company. I'd hate to see any company with a Viper and Challenger and HEMI in their catalogue die and bring those into the grave.
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cxvargas 10:42AM (1/24/2009)
I'm with you but if they would have done that instead of burning cash the name of the company would be Honda and not Chrysler.
Frank 2:38PM (1/24/2009)
Back in the 90's this is exactly what they did. They were as efficient as the Japanese when it came to designing and producing vehicles. 5 years ago they were in the clutches of "Count Daimlercula" and they were not in a position to do anything without Stugartt's say so.
ed 10:46AM (1/24/2009)
Bring Fiat cars NOW!! They should probably get rid of either Chrysler or Dodge or just combine both brands products.
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Sea Urchin 10:47AM (1/24/2009)
Improve 300C, still keep it cool, improve materials, add few MPGs, lots of chrome, standard big wheels, lots of free cabin tech.
Charger, same thing, improve materials, maybe use some weight saving technology.
Bring Fiat 500 to USA and sell it for 16K starting and up to 25K for more powerful versions.
Good luck.
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LeopardSeal 12:04PM (1/24/2009)
Having already had a chance to see the new 300, Charger and Grand Cherokee, I am confidant that they are a sure sign that Chrysler is moving their vehicles in the right direction. Not only are the outsides gorgeous, these three vehicles have the nicest interiors Chrysler has ever produced, even including the new Ram. Once Chrysler gets its small vehicle lineup figured out, things could really start to look up for the Pentastar.
For now all I can say to those nay-sayers out there is to wait and see...
Kumar 4:55PM (1/24/2009)
The 300 and the charger could immediately benefit from a fiat sourced diesel engine....actually, so could the minivans and SUVs.
Why not? VW is the only other company to have diesel in almost every vehicle.
I'm with the rest though on the 500 and random Alfa's....bring em...
guillermo cesar 10:51AM (1/24/2009)
If things go well, there may be huge cost savings for both. For Fiat / Alfa / Lancia would mean access to a high performance V6 engine Phoenix at an attractive price (4.5 million units per year in both groups mean really mass production).
Moreover Alfa / Lancia cost problems for the more expensive platforms (Alfa 159/Lancia Thesis) would be solved. This means access to more platforms without the need for R & D or to pay millions to Cadillac (CTS) or Jaguar.
Also becomes the first real possibility for an Alpha SUV (Alfa Kamal prototype which was cancelled due to costs). With Jeep platforms dream may come reality.
Round business. A combination of large platforms (American-style) and big engines (American-style -although new Phoenix V6 with a turbo in Europe would be such a success!-) with the efficiency of the small (but powerful) engines in Europe and its smaller platforms.
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Quuppa 11:02AM (1/25/2009)
"If things go well, there may be huge cost savings for both. For Fiat / Alfa / Lancia would mean access to a high performance V6 engine Phoenix at an attractive price (4.5 million units per year in both groups mean really mass production)."
Fiat Group has own V6 project going on.. ..
LX builder 11:16AM (1/24/2009)
Chrysler was thee most cost effective, highest profit per vehicle of all the the main stream auto makers. BEFORE Daimler-Benz bought and destroyed them ten years ago.
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Red 11:32AM (1/24/2009)
"Chrysler was thee most cost effective, highest profit per vehicle..."
When SUVs were hugely profitable, yes. The problems with Daimler didn't exactly exacerbate their current problems. Daimler gave them the W210 for the 300C, which showed Chrysler COULD make competent cars if they so choose to. The 300C is arguably the car that recently saved Chrysler from oblivion (car, not SUV/CUV). Now that SUVs aren't nearly as favorable as they were just two years ago, more vehicles, including a more efficient 300C are welcome additions to their lineup. The recent 200C Concept is extremely derivative, but I'd rather it be derivative than plain ugly, like the Sebring or pretty much anything else they build.
Dan 12:49PM (1/24/2009)
The 300 was certainly a success but it's a stretch to call it a savior of the company.
From 2004-2008 the 300/Magnum/Charger sold 1.1 million units. Which is 45% of Chrysler's car volume but only 11% of total vehicles shipped.
The Ram sold 1.8 million all by itself.
Red 1:39PM (1/24/2009)
Vehicles shipped (i.e. produced) and vehicles sold are two completely different things. Vehicles sold to customers and vehicles sold to fleets are again, two completely different things. Regardless, ask a random individual to name a Chrysler product that doesn't include Jeep or Viper, doesn't include a truck, is currently sold and actually looks half-way decent and see how many responses come back "Sebring", "Caliber" or "Avenger".
"Wait, I drove a Sebring last week as a rental."
"When did they replace the Neon?"
"Wtf is an Avenger? Is it better than the Camry?"
"The [300C] is pretty nice...my (insert random relative/friend/co-worker) has one."
Frank 2:42PM (1/24/2009)
Red,
ALL of their vehicles produced a profit in the 90's, even the Neon. Until the Focus the Neon was the only small American car that made a profit. Yes they made a lot of $ from SUV's and trucks. And they put aside into a "rainy day" fund to finance new products in case the economy went south (which it always will eventually). Dumbler took that money when they "merged" with them.