Car Guy
Nothing New at Chrysler
Fiat takes the doomed company for one last bad ride.
The “new” Chrysler has just partnered with Fiat but the cars it’s selling are still old. Ancient, actually. The PT Cruiser, Sebring, 300 sedan and Town & Country minivan. All pretty much the same for 2010 as they were for 2009. And in several cases, the same as they were for 2008.
And 2007, too.
For reporters who write about new stuff, there is nothing to write about — and won’t be, for a year or more. I haven’t test driven a new Chrysler in months — and likely won’t for months to come — because there are no new Chryslers to test.
The alarming (for Chrysler) fact is the company hasn’t got a single all-new model due out until later in 2010 — when a redone version of the 300 sedan will make its debut.
Can Chrysler hold out that long with a product line that was yesterday’s news last year? Will Fiat subsidize Chrysler’s dealerships — or is the real plan to use them as distribution points for its own models? If so, what happens to all those stacked up inventories of Chrysler vehicles? (There are still leftover and brand-new 2008s available as of fall 2009.) What happens to Chrysler assembly lines and workers? To suppliers of components for Chrysler vehicles.
And: What about the wheelbarrows full of taxpayer cash that went to “save” Chrysler?
Given the lack of new product, a few things seem likely. First is that Chrysler is probably not going to survive — as a maker of vehicles, that is. Its dealer network and even the name may continue to exist — but only as conduits for Fiats, which will be sold under the Chrysler name and through those onetime Chrysler dealers. Most of the profits, if any, will be going to Fiat (and back to Italy).
American taxpayers will have thus financed the acquisition of Chrysler’s few remaining valuable assets (its dealer network) by a foreign automaker. An automaker that will then be competing with the two still-standing American car companies, GM and Ford. It will be a new kind of outsourcing: U.S. workers paying for their own economic disfranchisement.
First the Germans. Now the Italians.
It was the Germans, you see, who ruined Chrysler. It wasn’t the economy or gas prices. It was the “merger of equals” between Chrysler and Daimler, parent company of Mercedes-Benz, years before the economy went south and gas prices sailed over $2 per.
It wasn’t a merger, of course. It was a takeover. Benz needed money and Chrysler (at the time) was swimming in it, believe it or not, on the strength of gangbuster hits like the minivan — which it brought to market first and better than anyone else.
And what did Chrysler get in return? A couple of dated “vehicle platforms” (outgoing versions of the Benz SLK chassis, which became the “Chrysler” Crossfire; and the previous-generation E-Class chassis, which was used to build the original 300 sedan).
Meanwhile, most of the money that should have gone to fund the R&D into new and updated Chrysler models went to finance the expansion of Mercedes into virtually every market niche, down to the minivan-like GL class. The German automaker now boasts 13-plus separate models. It had just eight circa 1999 — the year after the disastrous (for Chrysler) “merger” of equals.
Danke schön, Daimler-Benz. And danke to you, too, American taxpaying sucker — since you get to pay for it all.
Now, it’s the Italians’ turn to feast upon the corpse, with the bill (plus gratuity) falling straight into the laps of the same taxpaying suckers.
Apparently, no one sees it coming. But given the prehistoric model lineup Chrysler has to offer — and knowing there’s nothing new in the pipeline for at least the next six months — it is hard to understand why more alarm bells aren’t sounding.
It may be time to quit throwing good money after bad — and leave Fiat to finance its expansion on its own nickel instead of ours.
About the Author
Eric Peters is an automotive columnist and author of Automotive Atrocities: The Cars You Love to Hate (Motor Books International) and a new book, Road Hogs.
Letter to the Editor View all comments (67) | Leave a comment
Related Articles
More Articles by Eric Peters
More Articles From Car Guy
http://spectator.org/archives/2009/10/22/chrysler-finito
Follow us:
ADVERTISEMENT
Current Issue
- A Panoply of Beauties
- The Thatcher Legacy
- His Reach Exceeded His Grasp
SPONSORED LINKS
FLASHBACK TO: 1995
-
Pope Culture
A man of faith in a godless age is hitting Americans where it hurts.
-
Why the GOP Does Not, Like, Totally Suck
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
-
Dames at Sea
-
In the Absence of Guns
In Britain, defending your property can get you life.
-
The Metaphysical Martini
-
Counting the Costs of Clintonism
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
-
Chuck McHagel
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
-
The Legacy of Old John and Mother Fresh-Roasted
-
It’s the Best Time of the Year
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
-
The Bush Crack-Up
Was the President done in by the economy, or by the politics of the economy?
Clip of the Day
ADVERTISEMENT
John Rogers| 10.22.09 @ 7:11AM
As I write this in October 2009 when did 2007, 2008 become prehistoric? You describe the Daimler years well and Cerberus spent most time slashing the work force. Yet under Cerberus changes were made like better interior materials. The Challenger is new, the award winning Ram is new and the new Jeep Grand Cherokee will debut this auto show season. Next year an all new 300, 200 and Dodge Charger are coming. Not bad coming from an automaker just emerging from Ch. 11. Excess manufacturing capacity has been slashed. Since you are an “automotive writer” you should know who Sergio Marchionne is. His plan for Chrysler product and manufacturing is a six hour event debuting November 4th. Instead of empty hyperbole why not wait for the press event or do some research? No I don’t work for Chrysler nor am I an “automotive writer” but I bet it doesn’t take much to be one.
Rick| 10.22.09 @ 8:48AM
John, I totally agree with your statements... This writer is not qualified to make comments on the Automotive Industry... Actually the information they based their article on is prehistoric .... If they are going to report on something try doing a little more research and get accurate information...
JP| 10.22.09 @ 9:21AM
Peters is right. These new models are nothing new -just rehashed versions of older ones. Chrysler is still in negative cash flow territory. Not good during good times; disasterous during recessions like this one.
Emil| 10.22.09 @ 9:37AM
You arewrong, the brand new Jeep GC is not just rehashed version of older ones. Same goes for new 300 and Charger.
Emil| 10.22.09 @ 9:37AM
You are wrong, the brand new Jeep GC is not just rehashed version of older ones. Same goes for new 300 and Charger.
John Rogers| 10.22.09 @ 10:14AM
Truth is many “new” cars are new “top hats” bodies with interior tweaks. That is foreign and domestic.
Barrett Root| 10.22.09 @ 10:24AM
True. The original Mustang was built on the Ford Falcon chassis.
Eric Cartman | 10.22.09 @ 10:22AM
I remember when Chrysler, Dodge, Mopar were innovative and cutting edge in the auto industry. Groing up in Detroit, we used to go to 13 Mile and Woodward and watch the cars. My friend's dad was a Chrysler engineer and used to go around asking the motorheads in the Cunningham Drugs parking lot what they were working on, what they were looking for in their cars. Look at soem of teh Chrysler innovations in the past. Impressive stuff! What always turned me off about Dodge, though, was their boxiness. I love the old Charger/Challengers/Roadrunners, though. Anybody ever see the movie "Vanishing Point" ?
Stuart Koehl| 10.22.09 @ 7:16AM
Well, I wouldn't say Chrysler did the minivan better than anyone else. I owned a 1996 Grand Caravan for five years, during which time I had to replace the transmission twice. I knew three other people who owned Caravans built in the 1995-1998 model years, and all three of them had major transmission problems. In addition to that, the air conditioner leaked coolant constantly, the rear cabin fan vibrated loudly, the interior body panels did not fit, and the cockpit was an ergonomic slum.
Which is why I bought a 2002 Dodge Oddyssey, and have never had cause to complain. The difference in quality is night vs. day. That Caravan was my first American built car (all my others have been Hondas of various types); it was also my last.
Eric| 10.22.09 @ 2:32PM
Yeah! that "Dodge ODDYSSEY" is pretty good...
UpChuck.Liberals| 10.23.09 @ 12:39AM
Yeah, Dodge is Japanese for Honda. Ya know.
Bram| 10.22.09 @ 7:39AM
I believe the Jeep name and some of their products are still valuable. In a real bankruptcy, Jeep would have been sold off for a handsome price. Instead, U.S. taxpayers are financing their handover to Fiat.
We may still have the last laugh. Fiat failed the last time around in the U.S. with cars too expensive and unreliable to compete here 30 years ago. How exactly is "Fix It Again Tony" now going to compete against Honda, Mazda, Toyota, Subaru, and Hyundai?
victor| 10.22.09 @ 8:55PM
Not when they are also known as:
Futile
Italian
Attempt at
Transportation
Fiats days in the US are long gone and so will Chrysler's in a few years.
Ken| 10.23.09 @ 6:53AM
Victor,
Well, you have obviousily never driven any of the new FIATs or Alpha Romeo's (FIAT builds these also). I would take an Alpha 159 over any other sports sedan out there (either US or Japanese built) or the 147 which I used to have (1.9 JTD that would get me 45 MPG). Don;t knock it until you have treid it.
PaulP| 10.22.09 @ 7:50AM
Well Dodge Cravan just won JD Power Most dependable minivan title, beating Honda and Toyota minivans. So its minivan quality can not be that bad
http://www.jdpower.com/autos/r.....tegory/van
Bram| 10.22.09 @ 3:56PM
I'm more inclined to believe Consumer Reports who favor the Toyotas and Honda over Chrysler products.
They don't just have to build cars of comparable quality, they have to convince us. After years of screwing the buyers with junk, that is a tough sell. Hyundai overcame their poor quality perception by offering very the longest warranties in the market. Chrysler should do the same if they want people back.
Here’s another tip – stop supplying the rental companies with stripped down junk. Every time I get a “mid-sized” Chrysler rental it’s terrible.
SC Mike| 10.22.09 @ 8:01AM
Stuart Koehl probably meant to write that he purchased a Honda Odyssey, a vehicle that would be day to Chrysler’s night in terms of quality, features, etc.
What Eric Peters meant about Chrysler doing the minivan right was that Chrysler stayed a step or two ahead of all the manufacturers in terms of features and innovation. It created the minivan class, leaving Ford and GM -- yes, and even the foreigners -- to respond with me-to versions. Ford had a chance in the late 1990’s to introduce the driver-side sliding door in its re-design of the Windstar, but the marketing folks poo-pooed the idea with the result that the otherwise competent Windstar was thumped a year later by Chrysler’s driver-side sliding door. Thereafter the Windstar became a copycat. GM never seemed to get serious about its minivan offerings.
Chrysler’s minivan components, especially transmissions, are an ideal addition to the Fiat line where Fix It Again, Tony in the US is matched by the Fehler in alle Teilen auf Deutsch. Jeep will fit in fine too.
Where’s Chrysler’s small car, something that gets 35 mpg? I guess Fiat will have to fill that hole, along with the holes for mid-size cars like the Fusion and GM’s offerings.
I'll find the link, but JD Power methodology is interesting and one that I'd not follow.
Adam| 10.22.09 @ 8:11AM
Well I still own 1998 Caravan with 200 000 miles
and still running with original transmission and engine. Never any big problems just regulat maintanance. My sister drives 2003 Town&Country; with 80 000 miles and not a single problem
earl| 10.22.09 @ 10:03AM
Driving a '99 Grand Voyager. A great van. Would love to have a new one just like it.
Suz04| 10.22.09 @ 8:25AM
I guess no vehicle is perfect. My 03 Honda Odyssey needed 2 transmission replacements
in 5 years, plus many other problems. Thank god I dont own it anymore
Munsch| 10.22.09 @ 10:15AM
Same here many transmission problems on my 02 Odyssey van. It took 6 months of phone calls and bitching before Honda agreed to replace transmission under warranty
Son Of Sam | 10.22.09 @ 8:58AM
Whoa there fellows, hold the phone, I gots me an idea. Why don't we have a really big "cash for clunkers" program. Then maybe people will buy up all those unsold Chryslers. No? What, you mean we used taxpayer money to stimulate Korean and Japanese car companies with the last "cash for clunkers" program? Please, say it ain't so!
Seriously though, we've got absolutely nothing to worry about: Chrysler, like GM is in good hands now. The TelePrompter In Chief says so!
stand strong until freedom dawns
Son Of Sam
http://www.samadamssos.bravehost.com/
Robert Rosencrans| 10.22.09 @ 9:11AM
Merging Chrysler and Fiat is like marrying Wolfman and Frankenstein. Chrysler has some good assets to sell or makeover but with Obama and his crew calling the shots, their future does not look good.
Edsel Weinershnitzel | 10.22.09 @ 9:52AM
Speaking of the Germans, why not buy a BMW? They're made in South Carolina!
Emil| 10.22.09 @ 9:56AM
Just small percentage of BMW's are made in South Carolina, most of them is imported from Germany
Reinhard| 10.22.09 @ 2:18PM
The BMW SUV's and sports car are manufactured in Greensboro NORTH Carolina. Not extactly a trivial portion of the product lineup.
Car Guy| 10.25.09 @ 7:30PM
No, wrong Reinhard, the plant is in Spartanburg, SC (or actually 1/2 way between Spartanburg and Greenville, just NNW of the interstate 85) - at least that is the sports car (Z3, etc.) plant. I don't know where the SUV's are made for sure.
R. Evans| 10.22.09 @ 10:03AM
How far ahead is Ford, and even Chevrolet, going to be by the time Chrysler has anything on the decent on the road. Ford is pumping out new product, and I believe Chevrolet has some pretty good stuff coming also. Chrysler has a tough road ahead.
R. Evans| 10.22.09 @ 10:04AM
How far ahead is Ford, and even Chevrolet, going to be by the time Chrysler has anything decent on the road. Ford is pumping out new product, and I believe Chevrolet has some pretty good stuff coming also. Chrysler has a tough road ahead.
Pat| 10.22.09 @ 12:42PM
If you feel a need to reminisce on what you and the little woman did in your Plymouth Valiant or a compulsion to recount that historic day when you finally saved enough for the black Charger with the Hemi under the hood, then go ahead if it makes you feel better, but saving Chrysler had everything to do with politics and nothing to do with cars. Obama saved Chrysler for the UAW, it wasn't because Americans needed MOPAR's unique styling or performance factors - it was a political payback and a show of loyalty to the union.
To understand the auto bailouts, Chrysler or GM, you have to understand Detroit and S. E. Michigan residents. With 5 minutes of instruction, you too can learn your assembly line job for life - and many Detroiters brag they're 3rd generation autoworkers - 3 generations and the kids are still screwing nuts on bolts. Walter Reuther understood those lovable, beer drinking, pizza eating, league bowling autoworkers and mandated the union would henceforth be heavily involved in politics, money would be donated to campaigns, union members would actively support politicians - the UAW tape worm needed loyal and concerned friends in Congress and the White House to keep their unwilling automaking hosts in line.
This symbiotic relationship between the UAW and the Democrats went on for decades until the crisis hit in 2008 - suddenly, and without prior warning, the golden goose was truly dying. Autoworkers come from a tough town and region, a city represented in the NFL's black and blue division, a culture of manly hunters and outdoorsmen, but autoworkers weren't afraid to show their feminine side, they cried and carried on like little girls at the thought the American car industry might be gone - and soon. Between the weeping and wailing, there were brief bouts of anger "We'll show you what'll happen if you don't help us."
Americans didn't cave in to the weeping, hissy fits or threats - car companies have died in the past -Packard, Studebaker, Hudson, Nash, American Motors to name a few, but the UAW reminded Obama of their long relationship and past loyalty. Obama surveyed the field and recognized his constituents not only needed help from other people's money, but by taking prompt action an object lesson was delivered to his non-autoworking supporters. This could be seen in the fact he took no pity on bondholders, stockholders or mom and pop car dealers, they would be readily sacrificed - and they probably voted Republican anyway.
Left to market forces, this author would now be writing about the many new clubs formed to restore Chrysler products to vintage states or to cleverly customized hot rods, but the former glory of Chrysler won't be kept alive solely in car restoration clubs, it will be preserved with politics and behind the scene deals with foreign car makers.
ncatty| 10.22.09 @ 1:35PM
Pat, you should be writing editorials for newspapers, except they are going the way of Detroit carmakers. Great comment.
victor| 10.22.09 @ 9:06PM
Chrysler will be a marque known only to car clubs in a few years as engineers and designers jump ship and go other companies.
The UAW is not interested in profits as has been proven, they are only interested in preserving their benefits and pensions.
In a few years they will be making Hornets and Gremlins or whatever the "bama" wants them to make.
We, of course, won't buy them.
Screw the Unions and Obama!
Buy Transplants!
They're built better and they last longer.
I'm on my fourth Japanese vehicle ovet the lcourse of twenty years and will more than likely buy a Camry when the time comes.
The Kash for Klunkers was such a success that people screwed Detroit and helped the Japanes and truck makers.
Obama's really screwing up in reverse.
Kent Lyon| 10.22.09 @ 12:48PM
Mr. Peters demonstrates, once again, that America is a PT Barnum nation.
Art C| 10.22.09 @ 2:16PM
The Charger is a 4 door. Big mistake. Dealers are still trying to get under-the-table money for a Challenger. Yes I saw "Vanishing Point". You can't buy a white Challenger unless it is fully loaded.....for $40,000. Gratitude is not a word they are familiar with. Let it fail.
John Rogers| 10.22.09 @ 5:31PM
"You can't buy a white Challenger unless it is fully loaded.....for $40,000"
Simply not true you can get a white SE for $23,460 of course you should just pony up for a white R/T with pistol grip six-speed at $32,580.
Art C| 10.22.09 @ 6:37PM
Hi John: try to find one in or around Westchester N.Y. otherwise it's something to consider, lol. Be well.
Reinhard| 10.22.09 @ 3:33PM
It always amazes me when Daimler is portrayed as the pirate and "stealing" Chrysler. If Chrysler were "swimming in money" why on earth would the stockholders have sold the company? In fact, Daimler lost nearly $40Billion when it finally jettisoned Chrysler and was still responsible for covering bloated UAW pensions and health plans. As for technology exchange, the Mercedes-benz SLK roadster is still going strong, so Chrysler wasn’t thrown an “outgoing” chassis. It was the geniuses at Chrysler that turned their version into a humpbacked parody of the original. As for using a “previous generation” E-class chassis, it must have been quite a shock and improvement from the conestoga wagon suspension currently in use. I was working as a consultant at Daimler HQ when the sale was announced. The way the staff celebrated, we expected them to run out and tear the Chrysler name off the sign at the entrance. The bottom line is that there is plenty of blame on both sides for this failure. If it bothers you that it was an U.S. firm that suffered the consequences then you may want to consider this situation as an example of American business practices coming home to roost.
Bram| 10.22.09 @ 4:03PM
That loss of $40 Billion was on financial statements. The internal transfers going on while they were merged have not been divulged.
When the sale to Daimler took place, we all assumed some technology and development was going to flow into Detroit - it never really happened. Sure some basic chassis were shared - on cars that Daimler should be embarrassed of.
John Rogers| 10.22.09 @ 5:47PM
Reinhard only you believe that, even Dieter Zetsche would not say that with a straight face. Bob Eaton and Juergen Schrempp along with Daimler are the only ones who benefited from the deal. It is well documented and will be the subject of books for years.
Dman| 10.22.09 @ 4:55PM
Eric Peters is obviously an ametuer and does not have any automotive chops. Notice how when he mentioned Chrysler lack of products, he only mentioned the Chrysler Brand. (no mention of the Dodge brand, 1 year old Ram trucks, or Jeep?). As an auto writer , how could he not even know that, or even researched it. He's just trying to make a political statement about the futility of bailouts, and is trying to use Chrysler Group as a test case. Sergio Marchionne turned Fiat group in Europe around quickly, and they were a basket case, similar to Chrysler's situation. They can bring a product from concept to market faster than any other automaker. They're pumping Fiat talent into Chrysler as we speak in such areas as powertrain, marketing, and service. Rather than jumping on the "bash Chrysler" bandwagon, take a wait and see approach. Chrysler has risen from the ashes before, and this time, they have some serious grown ups in charge with a determination to bring this company back.. sharing platforms, and know how. I look forward to hearing what this guy has to say when Chrysler Group is making profits in 2 years and pay's back its loans to the government. (I won't hold my breath, he probably will say nothing).
Guy| 10.23.09 @ 9:22PM
"this time"?
Speaking of automotive chops; what planet are you writing from? "Fiat talent" is an oxymoron. Fiat is still the automotive punchline to jokes in Europe. And they have what particular car that is suitable to federalizing for the US market? I believe none is the answer.
Dodge trucks are going to turn around the company? They've got the tied-for third model in the most competitive market in the US. Jeep? Have you owned one of those dead sleds? Go drive a Compass and report back on any redeeming characteristics you find. The marque will likely survive in some form similar to it's traditional niche. Fat, heavy SUV's with no interior room aren't exactly leaping off of dealer lots, and won't be any time soon.
Residents of Michigan are somewhat inured to "this time" arguments. It might come as news to the Dman but, nothing has changed in Detroit. Same UAW contract, same lack of product. Or does he think that those hemi's are going to sell to a public still thinking about $4 gasoline? The 1972 AMC line-up of Gremlin and Matador would be more competitive. They were manufactured a couple of "this time" 's past.
Two years until payback? Perhaps you'd like to back that assertion with a few Ben Franklin's? Ferrari will be building Blue Bird school buses before Chrysler is profitable.
If Chrysler had new product tomorrow they wouldn't be profitable; nothing has changed. There's an over-capacity in automobile production for the US market and Chrysler has a two thousand dollar per car legacy cost anchor around it's neck.
I'll grant you one thing; with Fiat pumping all that talent into service, and their legendary product reputation, we could become a nation of auto mechanics rather quickly. Otherwise I think you're mistaking a shovel-ready project for a car.
Clintidote| 10.22.09 @ 6:11PM
The reason alarm bells aren't sounding is that the decisions are being made by unaccountable parasites who could only get government jobs.
Pingback| 10.22.09 @ 7:21PM
Twitter Trackbacks for The American Spectator : Nothing New at Chrysler [spectator.o links to this page. Here’s an excerpt:
Richard Baker| 10.22.09 @ 7:29PM
As for Fiat running Chrysler, anyone seen the great new lineup of Fiats in America for 2010?
victor| 10.22.09 @ 9:21PM
Here's one:
http://www.automobilemag.com/n.....index.html
The United States is not even on their market list.
And here's some future releases, maybe.
http://www.caranddriver.com/fe.....er-feature
Margie| 10.22.09 @ 9:28PM
I feel like I'm reading my hubby's Car & Driver. :^)
Pingback| 10.22.09 @ 10:29PM
Water Sports for Kids - Posted In sports | bigsurpowerdown … | Sports Leisure Knowled links to this page. Here’s an excerpt:
JimE| 10.23.09 @ 1:20AM
The point is not about platforms, it is about what Fiat will do to the company. You buffoons need to study how Fiat ruined New Holland.
geno| 10.24.09 @ 4:51PM
I used to be a big Chrysler fan but no more.
They have very few products that would interest me these days. I have owned 4 minivans over the years and the last model year of interest to me was 2007 which is also the last year of the MINIvan. Now all they have are what I call mini buses, very long and thirsty.
I have rented some of their product over the last 2-3 years and the ones that got my attention are the Jeep Patriot/Compass & Dodge Caliber. Equipped with the CVT tranny & 4 cylinder they got some get up & go along with good gas mileage.
They need to bring back the short van & equip it so it can get some decent gas mileage.
I have recently rented Nissan Rogues & the new Chevy Equinox, both with AWD, & got 26-28 mpg on them equipped with 4 cylinders.
For a company on the ropes why are they producing a gas hog like the Challenger which has very limited market appeal???
As for their sedans, nothing exciting there. What happened to the thinking that brought about the minivan in the first place???
shoey| 10.25.09 @ 9:14PM
GM and Chysler are both dead, they committed suicide the minute they sold their souls to the socialist devils.
i'll never buy fom either company as long as I live
Pingback| 10.29.09 @ 3:37PM
Lapping the Web: The Latest Auto News | Auto News, Recalls and Car Blog - DriverSide links to this page. Here’s an excerpt:
Moey| 6.12.12 @ 10:48AM
I think that Chrysler makes good cars, but I am starting to get tired of their designs. My car had 110,000 miles on it and I knew that I needed to get a new car. At first I wanted to get a Chrysler, but then after seeing their newest cars, I decided to buy a Honda instead. Some people might call me crazy, but I like to look better and it drives super well too.