Chrysler vs BMW: survival
BMW ran an ad that included: “The ability to say no to compromise is a rare thing these days. Many
companies would like to be able to say it, but so few have the autonomy to actually do it. As an independent company, BMW can say no.” BMW, in short, makes the Ultimate Driving Machine, and will not start producing poor-handling SUVs or economy cars to get a quick buck, unlike some other companies we can mention.
It is great companies like BMW, Honda, Toyota, that do not stray from their principles nor let somebody come in and change their operations or beliefs. That is why these companies are first rate auto companies - the finest and most successful in the world, while entities like Chrysler are second class citizens in the market place. Strong companies keep to their guiding priniciples and never let them out of sight, while the weak ones let the market walk all over them. The last example is perfect in describing today’s Chrysler - a weak entity that sold itself to the devil for protection and in doing so sold its soul, beliefs, and principles. How do you pronounce Daimlerchrysler? Daimler, the Chrysler is silent.
Chrysler can no longer claim itself as an independent company like Toyota, Honda, Porsche, Ford, and GM can. These are the first tier auto companies that rule the auto industry. The second tier are those that have to gain protection from a stronger (financially and mentally) entity. This fits Chrysler perfectly as it huddles to the security blanket of its Stuttgart masters.
Chrysler no longer has the ability to say anything about its future because now its future is guided in Stuttgart Germany. The German mindset is clearly on display on the new and upcoming Chrysler, Dodge, and Jeep vehicles. That “Chrysler” look is gone and has been replaced with such strong German lines that even Hitler would approve. The Commander would probably fit perfectly in the German army. Gone are the swoopy, sleek lines of the original Viper or the cutesy look of the Neon. Instead we get box after box because that is what the Germans define “American” style as. Chrysler’s design philosophy has been thrown out the window.
Chrysler’s legendary engineering died when Walter P. Chrysler passed on. After that day, Chrysler engineering has had some bright spots and some not so bright spots. Today, I have to wonder if there is such a thing called Chrysler engineering because with all these parts coming from Stuttgart,
Nissan, Hyundai, Mitsubishi, Mercedes, VW, and others, one has to wonder what those Chrysler engineers do all day. They can’t seriously think they can take credit for the work done by others? So, another of Walter P. Chrysler’s beliefs is out the window.
And finally, the main point that EVERYBODY seems to miss - Walter P. Chrysler’s persistance in keeping his company going during so many threats and hard times. His deterimination kept the company from going under. In contrast, the current bunch doesn’t have a clue, yet they foolishly think
they are doing a grand service by keeping his legacy alive. Well, I guess if keeping the name hooked up to the Daimler life support system is the answer, then so be it!
The point of all this mumbo jumbo is to say that the saying provided up above is the correct way to run a company and keep it going. Chrysler was (and still is) incorrect in its belief of its current situation. BMW, Honda, and Toyota have survived and have flourished because they did not sell out their principles. Chrysler did, and they had every opportunity to succeed like Honda, Toyota, and BMW.
CG is starting another one of its famous declines with over-production showing its ugly face again, industry leading incentives, dropping profits, and increasing fleet sales showing that the world’s “hottest” company might just be full of hot air. But just keep trusting good old Stuttgart boy
Eberhardt and all will be fine. Just keep telling yourselves that. And when the time comes to chop another 20,000 off the Chrysler payroll, let them talk to their representatives in Germany.
Like Ben Franklin said, “Those that give up freedom for security shall receive neither”. It is only a matter of time when this statement comes true. CG got themselves into this mess, and I’m not about to help them out of it either. It is either sink or swim with Daimler. They will have done it to themselves.
At least one good thing came out of this, the good/hard working guy has surpassed the bad/ unethical guy in the auto industry. By this I mean Toyota’s movement into third place in the U.S. auto market. Through hard work, determination, focused quality, and giving people what they want, Toyota has grown from a little nothing in the 60s to the third largest automaker in the United States by just man-handling Chrysler last month. On the opposite side of the spectrum, Chrysler has shown us how to throw everything away just for the short-sighted goal of protection — of the next “big fad”. Funny how the smart, independent car companies didn’t fall for that old trick and felt keeping their company strong and independent was more important than what Wall Street said. Again, Chrysler showed its feeble mindset at the worst possible time.
I applaud companies like BMW, Honda, Toyota, Porsche, Hyundai, GM, and Ford for doing the right thing and battling the tough fight and surviving.
