Getting Chrysler back on its feet

Nearly ten years of Daimler ownership have taken their toll on Chrysler. The 2.0 liter engine was allowed to age and be replaced by powerplants that are far too peaky for the average driver; cars were given odd combinations of far-too-expensive and far-too-cheap materials and designs; and, overall, there have been few real winners in the lineup since 1998, the two big exceptions being the current Wrangler and the 2001 PT Cruiser (some throw in the 300C as well, though as a whole the LX does not seem to have sold as well, or made as many profits as, the LH line had.) Now, yet more factories are slated for closure and shifts at surviving factories are being eliminated. What can be, and what is being, done? Or, to be more precise:

1. What can be done within one year to make the lineup work?
2. What needs to be done so the lineup will work in 2011?

These are very different questions. With regard to product alone, I suggest:

Here’s what Chrysler is doing do for #1:
1) Use the GM hybrid in trucks, SUVs, etc.
2) Dodge Journey, otherwise known as the “we’re betting a lot on this thing being popular” truck
3) Higher pressure turbo detuned to 270 hp for Sebring and Avenger to replace the 3.5 V6?
4) Higher quality through empowered teams (see Allpar article)

Here’s what they COULD do for #1:

1) Interior tweaks including better seats.
2) Special editions, etc.
3) Retuning of the World Engine.
4) Light pressure turbo or supercharger for the World Engine to make it more desirable

Here’s what Chrysler IS doing for #2:
1) LY series replacing LX series; possible AMT.
2) Truck aerodynamics and other key elements being reworked.
3) AMT/dual-clutch for minivans!! Gas mileage + performance + smoother operation!
4) Phoenix engines!! Gas mileage + performance!
5) Aerodynamics taking front stage
6) Going back to the early 1990s “involve suppliers early” on interior components; see Allpar articles
7) Higher quality through empowered teams (see Allpar article)
8) Horizon/Omni replacement (from China)
9) Rams with Avalanche style bed storage, new Cummins diesel in 1500
10) Dakota re-engineered as a lifestyle vehicle rather than as the heaviest duty mid-sized pickup; optional Cummins diesel
11) Durango based on lighter next-generation Grand Cherokee

Here’s what they COULD do, which would in my opinion fix the main problems of their bread and butter vehicles (aside from the steps mentioned earlier):

1) Engineer a Neon replacement and PT Cruiser replacement off a heavily modified Caliber platform using a PT-like suspension front and rear to save money and increase space utilization
2) Revisit pre-Daimler LX work; downsize slightly and replace Avenger/Sebring with larger FWD cars (may not be practical)
3) Replace the World Engine either with a more evolved version of the old 2.0/2.4, or with something based off the Hemi or Phoenix engine
4) Extended-wheelbase Commander
5) Scrambler (Wrangler pickup)
6) As the AMT takes over, put the six-speed automatic into cars that had the four-speed automatic

Of course there are more possibilities, and none of us have the warranty information, profitability figures, or other data that the execs have. We don’t know, for example, whether the LX really was more profitable than the LH, though I highly doubt that it could have been. We don’t know what actually customers wanted versus what dealers ordered versus what the factory incentivized into being. There are all sorts of administrative issues that are of key importance, including advertising and marketing, media relations, supplier involvement, quality enhancement, labor issues, production methods, tooling (Toyota drastically cut costs with new stamping presses that allow for lower roofs, less noise, and much lower energy usage, for example), CATIA (where Chrysler has long been a leader), emissions and fuel use, international sale, dealer relations, service capabilities, customer alienation prevention, customer loyalization (BMW excels at that), and more. The list of key issues goes on and on and on.

Fortunately, it’s not just Nardelli calling the shots out there. We hope the team gets it right this time. It’s a very hard job; journalists want one thing, normal buyers want another, and then there are the conflicting demands of Chrysler loyalists, other-brand loyalists (some of whom will never, ever, ever, ever buy a Chrysler, no matter what), and the on-the-fence crowd. There are alienated customers to be re-attracted on a constant basis through customer recovery - something not yet attempted at Chrysler, as far as I know - and there is much to be done before any dealings with a dealer or with the company, particularly the zone reps, convinces buyers that they really should have gotten a Toyota or a Chevrolet or what-have-you. There is Chrysler’s horrific image for quality to be dispensed with, and there is the constant question of Plymouth and an entry-level budget brand which could be more recession-proof than the Dodge, Chrysler, and Jeep brands are. On a higher level there are strategic questions of niche sales vs mass market sales; Chrysler is all but out of the car mass market now, but they could make it back in if their other ducks were in order.

Chrysler has a rough road ahead. I, for one, hope that their recent cost cutting moves were intended to give them some shock absorbers as they move into the future. At least in 2012, the V6 and V8 powertrains should be second to none.