When Worlds Collide

Concept cars -- Pictures courtesy GM, DaimlerChrysler

by blogSpotter
The word is that Daimler of DaimlerChrysler wants a divorce. It seems that after a 1.5 billion dollar loss to Chrysler in the last year, the marriage is all but over. DaimlerChrysler tried to infuse some energy into the Chrysler line-up w/ last year's "Dr. Z" commercials (featuring DaimlerChrysler chairman, Dieter Zetsche) but the commercials created more questions than sales -- "who the Hell is Dr. Z?" All marriages are give-and-take but it looks like Daimler didn't want to give much of its technology advantage to Chrysler. Apparently very little in the way of trade secrets was passed between the divisions. Daimler itself has had some less-than-glowing reviews from Consumer Reports so it may need to polish up its own techno-sheen.

GM is one of 2 or 3 suitors said to be looking at Chrysler. Ironies abound here; GM still makes vehicles that are with little exception lame and tame. Sure, you have the edgy Chevy HHR and the Hummer 3. You also have the 2007 Impala that resembles a 2002 Toyota Camry. You have the Cadillacs that look like blandified Nissans. Chrysler on the other hand has innovated time and again with, among other things: Dodge Caliber, Nitro and Magnum. Jeep (a Chrysler division) has added to the fuel-efficient cross-over selection with recent additions of Compass and Patriot. Why would the innovator be lagging behind the bland guy? One industry analyst has cited Chrysler's overproduction of slow-sellers like Ram and Pacifica. GM has made changes in recent years (eliminating Olds and pruning the models in each division) that have probably made it more efficient.

What would GM get from the marriage? Analysts say that they could leverage from Chrysler's truck/minivan platforms as well as its rear-drive car platforms. Otherwise, the companies are very redundant -- you'd have a behemoth with 15 divisions and serious overlap. One other thing, maybe a matter of ego, is that GM could keeps its rep as 'biggest car maker in the world' if it combined with Chrysler. Where serious money is at stake, blue ribbon designations would probably not influence the decision very much.

As of this writing, Renault-Nissan has said "no" to Chrysler and the GM talks have trailed off. Maybe it was the first date jitters. The Chinese (whose Chery model will soon be sold in the US) have actually expressed some interest in Chrysler. How would that play in Peoria if the Dodge Challenger, America's sweetheart of a muscle car, was being financed and manufactured by Red China? OK -- we'll cross that bridge when we come to it. So far, China and Chrysler haven't even been on a date. I truly like Chrysler and hope they turn it around. The saying is "baseball, Chevrolet and apple pie" but you could just as easily include Chrysler in that phrase.

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