It was a year ago this week that Cerberus Financial bought an 80.1% stake in Chrysler from Daimler. However, the situation remains grim. With a majority of their line up in vehicles that are in low demand (trucks, SUVs, crossovers), it is expected that Chrysler is in the red. Daimler, who still owns a 19.9% stake in Chrysler, has divulged that Cerberus may have lost as much as $510Mil in the first quarter. With little in the pipeline for the emerging small car market, some wonder how long Cerberus will wait to make a move... or sell the company.

Get the details here

Chrysler has a truck line (Dodge trucks) which are giant paper weights right now. Ford & G.M. have the same problem. Gas prices have reduced their bread and butter to liver & onions. They have some appealing cars (chry 300, dodge charger, challenger). The Pt cruiser is in desperate need of a redesign because the body has had such little change since its introduction. Their 4 cylinder & 6 cylinder vehicles need to become more fuel efficient, and they need to redesign a few other models as well which would help stop the bleeding. Of course it takes time to do these things, and who can say how much time is left.

They can only fight the current oil market trends for so long, movie franchise or not. The current drops in oil price are only relief, not a reversal.

Given the timing of this purchase, the only sensible strategy would've been a huge and fundamental reinvention of the company's business strategy. Have we seen any? Has there been any indication that one is coming? I'm not sure it'd work as there's a large risk in undoing their traditional image of rock solid stability and reliability.

I'm gonna pick this one apart a bit:



That much is common knowledge. The Big 3 used trucks as cash cows. We also know the only reason they have pursued Flex Fuel cars and hybrid technology to this point is to exchange CAFE mileage averages to build more trucks. Heck, if it wasn't for CAFE they probably wouldn't have but a handful of cars period.



The problem with Chrysler's car line up is neglect. The 300 and Charger are, by modern terms, dated chassis. The interiors are cheap looking (to me) and their powertrain options limited (unless you throw down cash for the SRT). The PT Luiser is majorly outdated and has always been bagged for being gutless. The Neon is a joke and is even more outdated than the PT Luiser. Chrysler has nothing for small cars, and that's why they're getting hit with the worst of the malestorm.



Chrysler's major problem is drivetrain. The HEMI is the last motor they built fresh. Taking the 4.7L Modular out of the picture, most of Chrysler's motors have gone untouched since the early 1990s. The 2.7L V6 is a joke, both gutless and ineffecient. The 3.5L has good power, but again is a gas pig. Chrysler (like the other 2 Bigs) need to invest heavy in powertrain. More specifically, they need to invest in foreign designs such as more DOHC configurations, more use of variable valve timing and expanded offerings for fuel displacement systems. The time has also come for direct fuel injection. But that's the whole problem here, they don't want to invest in infrastructure. That takes away from profit, and profit is what fuel America.

Sad thing is, eventually profit will kill us too. Foresight, it's all I ask.

Dated I do not agree with, but the interior design is cheap looking to me as well We seen to have the same opinion on the PT as well. They don't produce a neon anymore, I believe the last year for a neon was 2005. Even though the Neon has it's hang-ups they need a small car (which you stated) in the Dodge line which they don't have since the Neon went away.


I don't consider the 3.5 a gas pig, considering the size of the cars it goes into. I think it does the job for what is considered full size cars (chry300 & dodge Charger). The 2.7 is gutless, no argument there. Power train is part of the problem, the other part is design. New looks that people are actually enthusiastic about will sell, such as this: http://www.dodge.com/en/2008/challenger/
When the Pt Cruiser was first introduced, people were so eager to buy one they often paid more than sticker price. Now nobody cares because they have looked the same for years. IMO, the Sebring/Avenger, Jeep Patriot, Jeep Commander, to name a few, have plain designs. The Town & Country/Caravans need to go away or the price need to be lowered. One could pay up to $40,000 for a well equipped Town & Country. If I have $40,000 to spend I'm not buying a minivan.

I had a neon srt. it got 25/mpg city. blew the doors off of mustang gts. and was all around . but they had mitsubishi motors in them anyway. thus the gas mileage and power.


then they quit making them.