Autoblog

Chrysler's over-sized dealer-body has been struggling with the Pentastar's shrinking market share, but that's not stopping Chrysler brass from asking them for donations for the newly non-profit Walter P. Chrysler museum. Dealers are being asked to contribute $5,000 apiece to help keep the museum up and running, and in turn Chrysler is changing the museum's name to the Walter P. Chrysler Founding Dealers Society. Dealers that participate in the program will get their name added to the Founding Dealers Society Donor Wall.

While it's well-known that Chrysler is working hard to shrink non-core costs, the 70-vehicle museum only has six full-time employees, which doesn't meaningfully impact the bottom-line. The program is strictly voluntary as well, so no dealers will be unwillingly hurt during the funding of this museum.

[Source: Automotive News - Sub. Req.]

If you have a Dodge Ram in the driveway and someone claiming to be Jim Press calls you asking if you're satisfied with your truck, it just might be him. Chrysler recognizes that it has a customer service problem, and the Pentastar is going to extraordinary lengths to correct it. Its top 300 executives and directors are participating in a program called "Customer First" that puts a priority on -- you guessed it -- the customer. The executives, even guys named Nardelli, Press, and LaSorda, are responsible for at least one customer call per day, and all execs will man at least one shift at Chrysler's customer call center.

The Pentastar elite are also partaking in a three month competition to see who can generate the most sales. We don't know what the prize is for the winner, but whomever claims top sales should get something really, really good. Like a lifetime supply of Chrysler Sebrings.

[Source: Detroit Free Press]

We are just back from the kickoff keynote speech for the 2008 New York Auto Show and have to wonder where in the Big Apple we can score some of what Bob Nardelli is smoking. While his words sounded somewhat encouraging, they were about three months old for the most part and didn't sound terribly convincing to most ears. He outlined Chrysler's 4-point plan for the future, telling the assembled breakfast-seekers that enhancing the core, extending business, expanding the market, and executing flawlessly are the keys to Chrysler's future. OK, sure. That could apply to just about any enterprise. Using the company's global assets to reduce redundancies is obviously going to help, cutting non-profitable models and reducing the number of options and packages makes a lot of sense, too. His main focus was on product, pointing out that designing and building "aspirational" products was vital to getting people back into the Chrysler fold. We can understand how that leads to something like the Challenger, but the Journey doesn't seem like it meets that criteria as well. Maybe the briefly mentioned Grand Voyager and a Cherokee with a "special" roof will surprise us later today. We shouldn't be too hard on Nardelli and Chrysler, as the company is working on turning itself round. Unfortunately, this company's got a large turning radius.

Cerberus Capital Management shot off a nine-page letter to investors outlining ways that Chrysler could sink, while also pointing out that they believe Chrysler's on the track for success. Some of the possible failure scenarios include a nasty recession, an extreme slowdown in the car market, or a further credit downturn. Credit is already looking green around the gills, and the potential for a widespread domino effect that starts with an implosion of the teetering mortgage business would be catastrophic for Chrysler Financial and GMAC, of which Cerberus owns 51 percent. As easy mortgages and equity go, so goes willy-nilly new car purchasing, and we're probably already seeing the results of that adjustment. Cerberus believes that it can weather a mild credit downturn, and even a mild recession, just fine.

One way to attain success is to declare it, and changing the definition doesn't hurt, either. Cerberus optimistically declares that there's no need to be heroes to earn a good return on their investment. It sounds a little bit like they're saying it's okay to tread water. Stating that it's not necessary to build Chrysler up, even though that's the underlying hope, Cerberus thinks that just hanging in there should be good enough to earn a return. All of Chrysler's employees must feel great knowing that Bob Nardelli, Jim Press, and Tom LaSorda can essentially just keep the company coasting along until Cerberus sells Chrysler off so it can collect that mythical return. Chrysler's performance is so far outpacing expectations, and the company does have cash on hand. Those are actual, concrete good signs that Chrysler could yet emerge from its chrysalis.

[Source: Detroit News]

Detroit's sharp intake of breath over the very real possibility of increased federal fuel economy standards apparently doesn't include Chrysler's voice. CEO Robert Nardelli has told The Car Connection that rather than waste lots of time and energy opposing the likely increase to a 35 mpg fleet average, Chrysler will put its head down and get it done. Attaining the goal will not be without pain, however. Cuts will be made, and the books are still in the red.

There is hope, though, if Chrysler and parent Cerberus Capital can stick it out. A new contract with the UAW eases some of the automaker's financial burden, allowing that money to be plowed into development of more fuel efficient vehicles. There's a new two-mode hybrid system, co-developed with Daimler, GM, and BMW, which should help lift the fleet average without Chrysler abandoning their bread and butter moneymakers. With a lineup heavy in less-frugal vehicles like SUVs, trucks, and minivans, Chrysler's acknowledged the holes in their product mix and will set about plugging product into the voids. First up is the new Journey, the company's first crossover vehicle. The CUV segment is red-hot right now, so having a model to sell is a plus. Having a good model that will continue to sell well is an even bigger plus. At this point, Chrysler's facing an uphill climb.

[Source: TCC]

Chrysler has been through more changes in the past six months than any automaker in recent memory, and the announcement of former Home Depot CEO Bob Nardelli as Chrysler's head honcho is just another sign that the auto business in Detroit is rapidly changing. Nardelli was booted unceremoniously at America's home improvement store due to poor stock performance and an outlandish executive salary. He has no automotive experience, but he's the guy Cerberus wanted to lead Chrysler now and in the future. Former CEO Tom LaSorda is staying onboard the Pentastar as vice-chairman and President, and he'll continue to lead the crucial UAW contract talks.

Follow the jump for more analysis and video of Nardelli's press conference.