The Chrysler-Kia alliance that never was

Chrysler has been trying to shack up with another automaker for quite a while now, and the trail of relationships that never got off the ground reads like a middle school diary. While Chrysler's deal with Fiat has all but gotten 500s rolling out of plants on this continent, a deal with Kia had been worked pretty hard as a way to source a car, resulting in a term sheet for the relationship. Kia ultimately put the kibosh on the deal, citing manufacturing issues, a move that sent Tom LaSorda around the globe trying to play matchmaker for his employer.
A deal with Nissan to swap trucks for small cars was all but official, but fell apart after the financial climate worsened further, so it seems there will be no Ram-based Titan after all. Another joint deal was investigated, this time with GAZ and Magna, to build a car in Russia using excess GAZ capacity. Serious talks with General Motors even went on under the "Project America" moniker back in October. For all the efforts to get the Auburn Hills automaker betrothed, it finally seems like things are moving along with an assist from Fiat, and we should start to see the nuts and bolts of the deal come together now.
[Source: WSJ]






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Reader Comments (Page 1 of 1)
Sektor 11:02AM (5/07/2009)
Hilarious how Chrysler tried to hook up with every automaker in existence, all failed (except FIAT).
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mapoftazifosho 11:15AM (5/07/2009)
I really don't know what the Obama administration is smoking. They really aren't doing their due diligence on this unnecessary saving of Chrysler. Look at the history of the company and their current state of affairs and this really should be a chapter 7 liquidation.
I just don't see this being good for the industry in the long term. Now that more information has been brought to the publics' attention, I really believe that Chrysler and possible dodge should be killed and Jeep be sold to a suitor.
The Dodge Ram could be sold to Nissan...
Illegal Machine 11:06AM (5/07/2009)
Between Chrysler's declining quality and design, and Kia's increase in quality and design, Dodge probably would have been the "discount" brand.
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Erik 12:14PM (5/07/2009)
Ha!!! I don't think so. Even though some are aging, Chrysler's designs are still way more interesting and attractive than Kia's. I mean Ram, Challenger and Viper are bold, head turning and beautiful. 300 and Charger are in-your-face and attractive, if aging. Jeep designs are iconic and instantly recognizable. Kia design is bland to the extreme. I am not dissing Kia - they are great at the role they fill - America's discount/economy brand. In the discount/economy market, attractive designs are not particularly important. Low price, practicality, and reasonable reliability are, and Kia excels at these.
tanooki2003 12:38PM (5/07/2009)
Gee Erik I guess that's why people are buying a lot of Chryslers instead of Kia. It's no wonder Chrysler is doing awsomely on sales and Kia is looking to merge with Fiat to save itself since everybody think Kia sucks and cant sell their cars. "rolls eyes" Yes that was total sarcasm in case if you did not get it.
Seriously Erik I just don't think you get it. Halo cars do not make up the target audience. The absolute largest target audience are looking for simple, practical, functional but yet affordable cars that are in the Camry, Sonata, Optima, Accord, Altima or Civic, Elantra, Corolla, Spectra, Sentra classes. Most average consumers are not going to buy a Viper, or a Challenger, plain and simple. Those kinds of cars are for enthusiasts, which make up a very tiny percentage of the population. Also most want something more plain and simple on design as well as not being the size of a whale.
Also from what I have seen over the years most people are more than likely going to buy a Ford truck over a Ram, especially now that Ford is on the right track and is fiercely competitive.
Lastly people just don't buy from a company just because they have cool halo cars that they can only dream about and never afford. Kia may not have any cool sports cars or tired remade retro boxes in their lineup, none the less Kia is doing quite well on sales and at the same time rapidly increasing their quality, fit & finish, and design appeal with each generation of cars they come out with, unlike Chrysler which seems to be stuck living in the past...sort of like you
Erik 1:52PM (5/07/2009)
tanooki2003, it's you who just doesn't get it.
If you took the time to read the comments you are responding to, you wouldn't look so foolish in your response. This conversation has nothing to do with sales numbers, it has to do whith what brand would be viewed as the "discount" brand. Nothing in your disjointed ramblings indicates anything about why Dodge might be viewed as more "discount" than Kia. In fact, your comments about Dodge having more cars that would be considered "halo" or "enthusiast" while Kia makes ordinary cars for the masses just back up by contention that Kia would be viewed as more the "budget" brand. But since you seem to want to talk about sales numbers, Dodge is currently outselling Kia nearly 2 to 1. Plain and simple. Get a clue man.
Erik 12:18PM (5/07/2009)
"it seems there will be no Ram-based Titan"
So Nissan is going to drop the Titan alltogether? There is no way they are going to put the R&D dollars into a new from-scratch full size after the sales performance of the current Titan.
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imoore 1:32PM (5/07/2009)
In a way, it's good that Chrysler didn't hook up with Gaz. Gaz bought British van maker LDV in 2007, and ran that company into bankruptcy soon after that. They haven't built a van since Christmas 2008 and just last week sent everybody home and told them to stay away from the plant.
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tomguptill 12:08PM (5/09/2009)
Don't half of Chrysler's cars already share basic powertrain components with half of Kia's cars thanks to GEM?
I'm pretty sure the Caliber and the Sebring have the same engine as my Optima, but with a different fuel system.
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