A Step in the Right Direction - Chrysler

[MotoSook]

Chrysler, the fourth-largest U.S. automaker, dropped plans for its new Imperial luxury sedan because of rising gasoline prices and tougher fuel-economy regulations.

Executives made the decision within the past few weeks, Chrysler spokesman Ed Saenz said today. The Auburn Hills, Michigan-based automaker unveiled the Imperial two years ago and had planned to start production in 2009 in Brampton, Ontario.

"There was no business case for us to bring it to the market," Saenz said. "We will continue to look for a future product for the plant." The decision puts a $597 million investment in the factory on hold, while not affecting any of its 3,500 jobs, he said.

Chrysler is investing $3 billion to produce more fuel- efficient engines and other powertrain components. The automaker has been hurt by its reliance on pickup trucks, sport-utility vehicles and minivans that are losing sales as U.S. gasoline prices stay near $3 a gallon. The U.S. Congress is also considering an increase in fuel-efficiency standards.

"It makes sense not to build a high-end, lower-volume car when the direction of the market is moving toward smaller vehicles," said Tom Libby, an analyst at marketing-research firm J.D. Power & Associates in Westlake Village, California. "If there is a hole left in Chrysler's product lineup without the Imperial, it's a not a hole in the growing part of the market."

[Jim Richards]

Sounds like they are trying to pay attention to the market. Let's hope they get it right.

[onewhippedpuppy]

Build a product that consumers want?! Crazy talk!

[Porsche-O-Phile]

Of course they're still pumping out those piggish Magnums, "wanna-be-Bentley" 300s and pushing those obnoxiously huge pickup trucks (the commercials voiced by that guy with the overly-testosterone-laden voice who's probably on steroids). Yea, they're really environmentally on the cutting edge. Uh-huh.

Smarter than GM or Ford, but that ain't saying much. Certainly not enough to get me to buy their stock anytime soon.

[onewhippedpuppy]

I would beg to differ, I think GM is making some pretty big strides these days. While many of their products still suck, they are starting to make some quality vehicles. Of the not so big 3, they have the only products that I would consider right now.

I would rank Chrysler 2nd, with Ford a distant 3rd. Ford seems content to maintain the status quo, slowly driving themselves into the ground.

[MotoSook]

I think the American companies are all trying to catch up to the Asian and European manufacturers (again). It just baffles me that they had their heads stuck so far up their arses the last couple of decades. Did they really think they could stake the success of their companies on trucks and vans? The lessons the Asian and Europeans taught them in the 60's, 80's keep getting tossed, and they go their own path until they start hurting, then they scramble to do what the overseas manufacturers are doing.

[Rot 911]

Pickup trucks sell. People want them. As for the Magnums and 300's, the majority of them are the V6 which actually get pretty decent gas mileage.

[MotoSook]

I wouldn't want trucks and Vans to disappear, but it seems the marketing in American by American companies are Truck and SUV oriented. Would folks still buy trucks and SUV if marketing was more sedan oriented? Sure they would, but marketing to reinforce the American "bigger is better" myth has been going on for dacades. I have to wonder what would be the state of those companies, had they put forth more effort into developing smaller vehicles.

[Rot 911]

Souk I think the domestic car mfgs. have put themselves in a Catch-22 situation with trucks and to a lesser extent SUV's. They sell so that is what they advertise which keeps them selling.

[Jim Richards]

Yep. It's only when those sales begin to slump that the manufacturers focus will change. It's reactionary management, and it's the worst kind of management to have.

[onewhippedpuppy]

Their advertising shows their emphasis. Trucks and SUVs are also their best products. Why they can't balance their development and advertising dollars, and make great cars AND SUV/trucks is beyond me.

[Porsche-O-Phile]

"I'm just fillin' a need"

Phrase used by local drug dealer - condemned for it.
Phrase used by automaker - defended on Pelican.

I love the double-standards.

[MotoSook]

Originally posted by Jim Richards
It's reactionary management, and it's the worst kind of management to have.

I have been in manufacturing and in operations....and that seems to be the normal M.O. for American companies...sad.


The Detroit-3's are bleeding money....and none of the lessons learned since the 60's has stuck (or led to proactive thinking) in their corporate philosphy. I'm just making an outsider's observation...so I could be blowing smoke out my arse...yet, all the thousands of insiders haven't made very positive impact.

[berettafan]

POP that goofball with the deep voice (i gotta think he's really making an effort to lower it even more) is on a Ford ad i believe. IIRC it's the one that also touts the little nancy step on the bed door which, IMO, is kinda funny!

[Porsche-O-Phile]

That actually is kinda' funny when you think about it. Maybe it's Ford. Or Toyota. Dunno - all them truck ads start to sound the same after a while.

[onewhippedpuppy]

Originally posted by berettafan
POP that goofball with the deep voice (i gotta think he's really making an effort to lower it even more) is on a Ford ad i believe. IIRC it's the one that also touts the little nancy step on the bed door which, IMO, is kinda funny!

Mike Rowe? C'mon, he's a funny guy.......when he's not on Ford commercials. Gotta get it while the gettin's good I guess.

[onewhippedpuppy]

Originally posted by Porsche-O-Phile
"I'm just fillin' a need"

Phrase used by local drug dealer - condemned for it.
Phrase used by automaker - defended on Pelican.

I love the double-standards.

I'd love to hear this one explained.

So Hummer is no better than a crack dealer selling illegal drugs to kids? You've been watching Al Gore's movie, haven't you?

[kmhemi]

I hope this one dont get cancelled.

[Jim Richards]

Hmmm, only a 392? WTF! That car's crying out for a 426.