| |
'Detroit Disease' Inflicts Chrysler
By Sarah McBride
Chrysler was once admired for its toughness even at a point where the atmosphere is attracting slumping sales and massive losses. Nonetheless, according to some analysts, it seems that Chrysler has lost its protective cloak and eventually been inflicted with the so-called 'Detroit disease'.
Automotive reports are showing that Chrysler will lose $1.5 billion in the third quarter, about more than twice what it had expected beforehand. This loss is brought about by the slow sales of gas-guzzling trucks and SUVs.
According to Tom Appel, editor of Consumer Guide Automotive, "The company has been hit especially hard by the public's growing desire for smaller, fuel-efficient cars. But the issue may be more one of a perception than a reality."
"I think Chrysler's being hurt by a general impression that its large and hitherto well-received cars like the Chrysler 300 and the Charger are not very fuel-efficient, and so there's a bit of a backlash," Appel added.
Chrysler President and CEO Tom LaSorda said that the company intends to become more competitive internationally with a portfolio of smaller cars. "We're addressing those issues and moving our product portfolio to a mix that's more in line with the recent realities and market trends," LaSorda elaborated.
"But while new products are important, Chrysler, like Ford and GM, needs to do a better job of managing its car and truck inventories with flexible manufacturing processes like those used by Asian manufacturers," said Kevin Reale, research director for AMR Research.
Analysts are also saying that Chrysler lineup has other problems. One problem is its limited offer in the midsize SUV market. On one hand, the sales of Dodge Durango have dropped off abruptly. To circumvent the decline in sales, the automaker is modifying the Chrysler auto parts to set forth a striking lineup.
New Chrysler products that will be launched this year include Sebring sedan, Jeep Compass, Jeep Patriot and compact Dodge Caliber. "Dodge is about to launch the mid-size Nitro SUV, so that will help them in the fuel economy perception area, but when it comes to minivans someone has to come up with something new," Appel added. "The expectation is that the new Dodge Caravan and Chrysler Town & Country minivans will be that new thing, but their release is still some time away — they're not supposed to come out until mid-2008."
About the Author
As a manager of one of the largest auto store in Springfield,Massachusetts, Sarah has extensive expertise on auto parts and automotives in general. This 42 year old is a certified car enthusiast.
Article Source: http://www.simplysearch4it.com/article/41024.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/41024.html" as shown above and make it hyperlinked. |
| Some other articles by Sarah McBride | Ford's Young Exec Faces Big Challenges
Joe Hinrichs is the newest executive of Ford Motor Co. As such, Ford family expects a lot from him. He faces big challenges and he has the burden of surpassing Ford's expectations.
Hinrichs spent ...
Mercedes-Benz Delivers 4-Door Drop-Top
Mercedes-Benz confirmed the rumor that spread like wildfire in the previous months. The rumor is about a 4-door convertible that comes with a fascinating drop-top. The new convertible from the automaker ...
"Dent and Run" Accidents Mounting in Britain
"Dent and run" accidents seem to appear common all over but in Britain the number is now mounting like a newly-launched rocket. So far, the figures, in the latest ...
Tire Pressure Monitoring Is Not Just For Show
The tire pressure monitoring system is an electronic system and what it does is it monitors the level of air pressure or your vehicle's tires. That way, you would ...
Lessons With Danica Patrick
Some find her pretty. Some find her to be very talented. Some find her brave. And the rest of the motoring ...
WHEEL Power Gets Better
Cars do not work too well without quality wheels. Wheels secure the performance of the car and the safety of the occupants. This is the reason why a car purchaser ...
|
|
| |
|
|
|
