Showing posts with label Chrysler. Show all posts
Showing posts with label Chrysler. Show all posts

13 April 2008

Chrysler Hates Nice Door Cut Outs





Surely I'm not the only who has noticed this, but the next time you're on the road, pay close attention to the Chrysler vehicles around you. It's dawned on me that they have a curious design element that I see on basically no other competitor vehicles on the market- a rear door cut line that goes straight down into the rear fender.

What's the reason for such an odd touch? Is it cheaper? Is it easier to set up the manufacturing facility? I have no idea. What I do know is that it looks very cheap. Very very cheap. It looks as though the designers have put function, or ease of manufacturing, over style- and for all their faults, that's not something I've come to expect from Chrysler over the years. In contrast, most vehicles on the road have a rear door cut line that looks like this:


And I didn't put another Chrysler up there by accident. Coincidentally, the 300/Charger were designed and built during the Daimler era, and probably not so coincidentally, they're one of the few continued bright spots in the Chrysler lineup to this day.

1 October 2007

Someone Needs To Take Dodge Out To The Woodshed (MF Drives The Dodge Avenger)


My personal opinion on reviewing cars and judging their worthiness has always been that one has to view things in relative terms. For example, the interior trim in my Nissan Altima is quite nice for a midsize mainstream sedan, but would be very much out of place in a luxury vehicle- but because it IS a midsize mainstream sedan, it gets top marks. And for an opposite example, the interior in a Cadillac STS is amazing for an entry level luxury car, but not so much for a top of the range luxury car. Stuff like that.

So it's been interesting (to me at least) to gauge my own reactions to recent Chrysler products. Take for example the Dodge Nitro, the Jeep Patriot and the Jeep Compass (no really, take them)- they all have more or less the exact same interior, but to me, the only interior of the threesome that matches the intent of the vehicle is the Jeep Patriot- because the Rubbermaid hard plastic stuff screams utility to me- and the Patriot seems better suited to that than the overstyled overcompensating Nitro and the girly Compass.

A more relevant comparison for the purposes of this review would be the Chrysler Sebring vs. the Dodge Avenger. Basically the same car. Basically following the same old crappy marketing efforts that I thought had been eradicated from Detroit many moons ago. The Sebring? More feminine 'classy' styling, and a more 'upscale' interior. The Avenger? More butch 'aggressive' styling, and a, umm, less 'upscale' interior. It's actually somewhat amusing to see Chrysler pigeon-holing their buyers like this, but I digress.

What I'm actually trying to say is- the Dodge Avenger is less of an affront to the car buying public than the Chrysler Sebring, but not by much.

Where to begin? Well, first, the model I drove was a rental car special- a 4 cylinder equipped automatic SXT with the bare minimum in terms of interior goodies. No U-Connect, no chilled/heated beverage holders, no navi, no MyGig entertainment system, no steering wheel controls. On the outside, I was bedazzled by some of the most brilliantly orange peeled red paint I've ever seen, paired with a set of nice alloy wheels. Of particular hideous note- the designers at Chrysler must have a vendetta against C-pillars, if the C-pillar of the Sebring and the Avenger are any indication. Otherwise, I actually LIKE the exterior shape- yes, it's a mix of Caliber and Charger, but at least it's distinctive in a field which includes the Toyota Camry, Chevy Malibu and Honda Accord.

Inside, we arrive at the issue I hinted at in my Compass/Patriot/Nitro example earlier- materials that are obviously sub-standard in the Sebring become less sub-standard in the Avenger. Don't get me wrong, they still suck, but at least they fit in more with the image of the vehicle. Yes, it's all hard plastic. Yes, it gets uncomfortable at times when your knee rests against the center console or your elbow sits too long on the elbow rest. However, panel gaps are pretty tight, and there wasn't a squeak or a rattle anywhere. So it looks like Fisher-Price, but at least it was built by adults. Seat comfort is non-existent due to flat spongy surfaces. The stereo sounds like crap. The transmission lever is ringed by some of the fakest plastic chrome you'll ever see. But for some reason, it's not as offensive as you might think.

And the drive? Well, it's a mix of good and bad. First the good- the 2.4 liter four banger is, believe it or not- VERY smooth. It's actually a willing partner all the way up to the redline, and it sounds great. The transmission would be better served with another cog, but otherwise, it performs smoothly, although it is hesitant to shift down when more power is needed. And that's about it for the good. The rest is horrific. Spongy brakes? Check. Floaty suspension reminiscent of my dad's old 1985 Buick LeSabre coupe? Check. Incredibly overboosted steering? Yup, you got it. The best thing I can say about the drive is that it's not as bad as a base Buick Allure/LaCrosse. And if that's not damning this vehicle with the faintest praise imaginable, I don't know what is.

In the end, the place where I got my Avenger is also the place where it is best suited- the rental agency. On its own, one can make some arguments that it is a feasible vehicle. If you compare it to ANYTHING other than the Chrysler Sebring, it falls flat. Yes, it has a silky smooth I4, but apart from that, it is severely outgunned by everything in the segment. Even a Kia. I am absolutely floored that the designers at Chrysler and Dodge thought that THESE vehicles would be the ones to compete with the market leaders. Their OWN vehicles from last generation are in many ways better than these rolling piles of crap- seriously- stick this engine in a last gen Sebring, and I'd probably like the resulting vehicle more than these messes. The very fact that these have made it into the hands of the buying public is a testament to just how messed up the American automobile industry (particularly Chrysler) is.

The only way I could recommend this vehicle to someone is if they got it for about 6-7k off of list price. Which with the way Chrysler is going, may be in the cards somewhat soon.

6 September 2007

Jim Press Leaves Toyota for Chrysler LLC

In an absolutely stunning development, longtime Toyota executive Jim Press, who had been with the company for 37 years and was the first American ever elected to Toyota Motor Corporation's Board of Directors, resigned from the company to become Vice Chairman and President of Chrysler LLC. He now has the same job title as former Chrysler CEO Tom LaSorda, except that Mr. Press will be responsible for Sales and Marketing, and Mr. LaSorda will be responsible for manufacturing, labor relations, procurement, supply, and global business development and alliances.

With Toyota, which Mr. Press joined in 1970 when annual sales were about 100,000 units, his job titles were Toyota Motor America president and a Toyota Motor Corporation (TMC) senior managing director. Toyota is now the largest automaker in the world and the #2 automaker in the US (depending on the month), with 2,542,545 light vehicles sold in 2006.

Frankly, I'm surprised to see someone like Jim Press leave a comfortable, successful environment like he had at Toyota for the uncertainty of Chrysler. I would have expected Tom LaSorda to be out the door (since he was basically demoted from CEO to a COO role), but I guess money talks. Also, while Toyota sold more vehicles in the US than Chrysler did, the Chrysler job might be larger in scope than Mr. Press's job with Toyota was.

Jim Press has a proven track record of success in the industry - he was one of the executives who pushed for the latest Tundra to be larger, faster, and more capable than previous 7/8ths scale half-baked versions, and its sales success so far has proven that strategy to be a good one. Also, I needn't remind you that the Toyota Camry has been the best selling car in the US for nearly a decade. The guy knows how to sell cars, and Chrysler needs it. I believe that Chrysler, having already undergone several painful restructurings, needs someone who knows what consumers want and how to sell cars (and alter/shape perceptions of those products). Mr. LaSorda is good at his more operations-based behind-the-scenes role, and as long as Mr. Press can encourage the development of more appealing vehicles, and more importantly get consumers to buy them, Chrysler will be fine. Chrysler's dealer body is near mutiny, and Mr. Press has already promised to make repairing that relationship a high priority in his tenure.

I wish Mr. Press the best of luck in his new job. It won't be easy, but he is probably the right guy for the role. Also, congratulations are in order to Chrysler for the recruiting coup d'état, with a seemingly struggling company snagging Toyota's top US executive. Also, Toyota has lost its Lexus division vice president of marketing Debra Wahl Meyer at the end of August, who joined Chrysler as the company's chief marketing officer.

7 August 2007

Chrysler Brings Back Old Logo... Fails To Bring Back Any Type Of Vehicle I'd Want To Own Outside Of A Viper


The 'new' Chrysler is here to save us all. And by 'new' Chrysler, I mean the same old Chrysler minus ze Germans. Apparently 10 years behind the times, it looks like Cerebus is going to take us down nostalgia lane, unveiling the old Pentastar logo again but dressed up and looking all Mac OSX-like with it's anodized aluminum style.

Up next? Renaming the Sebring the Reliant, and changing the Crossfire to the Laser. And let's not forget a full scale resurrection of the Eagle nameplate- but let's make it edgy and modern and call it Phoenix. Get it? Get it?

As more and more news filters out of the Cerebus camp in regards to their new toy, the more one thinks that Chrysler as company has about 3 years before all the bits and pieces start getting sold off, like what your mom did to your Voltron set 15 years ago. First, they hired former Home Depot head Robert Nardelli to run things, someone with no experience in the auto sector, but with a lot of experience at quick turnarounds. Then they released a report which indicated that China, Russia and Hyundai would all play pivotal roles in future production- a move that doesn't really seem like one geared towards quality. Finally, their director of design said interior design would play a more pivotal role going forward, which on its own sounds great, but then in the next sentence described the upcoming Caravan/Town & Country as the way they're headed.

Not exactly a reason to be optimistic.

Let's just get this over and done with now- Nissan, you can have Dodge, their trucks, their minivans, and their American capacity that you so desperately are horny for. Ford, feel free to pick up Jeep now that you're getting rid of Land Rover. As for Chrysler? If the price is right, maybe I'll put in a bid.

26 July 2007

Chrysler Announces Lifetime Powertrain Warranty


Chrysler announced today that it is expanding its existing 3 year/36,000 mile basic limited warranty to a lifetime limited warranty on powertrain components on "most" new Chrysler, Jeep, and Dodge vehicles purchased from dealer inventory and delivered on or after July 26, 2007.

I applaud this move - it's likely to get the company noticed by buyers and alleviate many of the quality concerns they may have had. It also can work as an olive branch from Chrysler to its frustrated dealer body, who are still smarting from having sales bank inventory shoved down their throats over the past few years. The company also expects that the better warranty coverage could allow it to reduce its incentive spending, which is among the highest in the industry today.

The details are:
  • The warranty covers all parts and labor needed to repair covered powertrain components - engine, transmission, and drive system.
  • It applies only to the original owner or retail lessee.
  • To continue warranty coverage, the owner must have a powertrain inspection performed by an authorized dealer once every 5 years, within 60 days of each 5 year anniversary of the warranty start date.
  • Diesel vehicles and SRT vehicles are excluded from the lifetime powertrain warranty plan.
One key detail isn't clear. Chrysler's press release specifically says that the warranty applies to most new Chrysler, Jeep, and Dodge vehicles purchased from dealer inventory. So, what isn't clear is whether the improved warranty coverage also applies to units ordered, and not purchased from dealer stock.

While the move certainly shows a lot of confidence on Chrysler's part in its products, the move could backfire, because there will probably be some die-hards who kept their 2008 Sebring until 2048 and need a part, which may be nearly impossible to find or repair at that point. As long as the powertrains prove to be reliable and durable, and enough original owners sell or trade in their cars before problems arise, it should be a successful program and possibly inspire competitors to improve their coverage. If Chrysler's 2006 and newer powertrains do have problems in coming years, the company is going to be stuck with a huge bill.

25 July 2007

Nobody Wants to Buy Chrysler's Debt

Chrysler Group, which has been acquired by Cerberus Capital Management, is trying to tap debt markets for $20 billion to fund the new company's automotive operations and its finance unit after the transaction between Cerberus and DaimlerChrysler closes on August 3. The company's bankers have been trying to convince investors to purchase $12 billion in loans for the auto business and $8 billion for Chrysler Financial.

So far, the $8 billion loan sale for Chrysler Financial appears to be on track to be sold by the end of this week, but today, the bankers decided to postpone the sale of the $12 billion loan sale for the auto business due to a lack of buyer interest. Instead, they will fund the bulk of that debt - $10 billion - from their own pockets. If these banks (J.P. Morgan, Citigroup, Goldman Sachs, Bear Stearns and Morgan Stanley) don't eventually find buyers for the loans, and if Chrysler has trouble repaying them, these banks would bear the first losses (investors who bought the rest of the loans would be given priority over Chrysler's assets if the company was in default).

Chrysler isn't the only auto company experiencing this problem. GM's sale of its Allison Transmission unit ran into similar financing problems this week. Wall Street firms put off a $3.1 billion sale of loans that would have funded the buyout of Allison by private-equity firms. Like the Chrysler-Cerberus transaction, the Allison sale is likely to still proceed.

The root of the problem is that debt investors have gotten nervous lately about the huge amounts of debt being underwritten to fund buyouts. On top of that, bonds tied to the subprime mortgage debt market have suffered in the past several months, making debt financing - a favorite tool for both the auto industry and for private equity - more difficult to use.

In the Chrysler and Allison situations, the lack of an interested market for the debt offerings probably won't be a deal-killer, but this development in the debt market may not be welcome news for companies that are in a compromised state and need access to as much capital as they can get to fund their restructurings.

18 July 2007

Rolls-Royce Breathes A Sigh Of Relief- Chrysler Imperial Shelved


Apparently not happy with pillaging most Bentley styling cues with their Chrysler 300C sedan, a few years ago Chrysler decided to wade into deeper, more staid and upright waters- pillaging styling cues from Rolls-Royce. Perhaps emboldened by their then German taskmasters, who wanted to steal Bentley/Audi/VW thunder, they came out with the monstrosity pictured above, the Imperial.

What was the Imperial? A further stretched version of the 300C, with suicide rear doors, and a look that suggested it was straining to release a bowel movement. Probably not a good look for a vehicle destined to cost upwards of $50k US I think.

Seems like the current crop of Chrysler execs took a dose of Metamucil and came to the same conclusion, accord to the Toronto Star-

Chrysler confirmed yesterday that it has decided not to proceed with production of the bulky luxury car at the Brampton assembly plant.

Ed Saenz, manager of corporate communications for DaimlerChrysler Canada, attributed the demise of the project to escalating gasoline prices and more government regulations on fuel economy, which would cut into the vehicle’s popularity.
Read 'escalating gasoline prices' as 'we focus grouped this thing and people turned to stone', and 'government regulations on fuel economy' as 'we would need 2 Hemi engines to move this behemoth around', and you'd probably get a better idea of what Mr. Saenz was trying to say.

10 July 2007

Chrysler Headlights And Signal Lights Are Like Matter And Anti-Matter

It's been something that has bugged me for years, and I've never been given a good answer for it.

Have you ever noticed that EVERY Chrysler vehicle shuts off a headlight when a signal light is flashing? Picture it in your head- the Caravan above is driving around with its headlights on, and comes to a stop sign and wants to turn right. The driver signals the right turn, and the right headlamp goes off while the signal light flashes. Once the signal light shuts off, the headlight goes back on to normal. This happens with daytime running lights too. And it's not limited to vehicles that have both lights in one housing- it doesn't matter, and it happens to every single Chrysler vehicle- Dodge, Chrysler, Jeep, you name it.

So, why does it do this?

Some have postulated that it has to do with minimum distances for lights in the law- but that doesn't hold weight, because lots of other cars have similar setups to Chrysler vehicles, and they don't exhibit the same behaviour.

Anyone?

9 July 2007

Halfway To Zero


The first half of 2007 is behind us, and after some crunching of sales numbers, Automotive News reported today that the market share of the Big Three domestic manufacturers (GM, Ford, and Chrysler) has dipped to 50.2% of the US vehicle market in June, thanks in large part to GM's meltdown. Meanwhile, sales of Japanese branded vehicles in the US rose to 37.5%. Since the Domestics' share was 56.0% in June 2006 and the Japanese brands' share was 32.5% in June 2006, this means that almost one for one, every point of market share that Detroit gave up was snapped up by a Japanese brand. European and Korean brands took up the remaining 0.8 percentage points of market share.

What does this mean? Well, unlike an era a generation or two ago, when GM alone held more than 50% of the US auto market, three US-based companies together are likely to not be able to hold onto that share even together. GM has already said that they will not sit idly by while Ford, Chrysler, and even Toyota outspend them on incentives, so expect possibly a slight bump in July in domestic sales, but the long term writing has been on the wall for a while.

Not only has the US auto market become more fragmented - with more models, more brands, and even more countries of origin than ever before - but the domestic brands falling asleep at the wheel for a decade or two in the 1970s and 1980s certainly has harmed their current situation. For decades, their import competition steadily chugged along, improving their products in terms of comfort and reliability with each generation, convincing one buyer after another to switch brands, Detroit didn't do much about it. Now that this ship has left the harbor, and foreign competition has raised expectations and created a generation or two of satisfied customers, Detroit needs to come up with products and marketing that will convince satisfied import owners - or at least current domestic owners thinking of switching to the import side, that their products are worth buying. To do that, they'll need not only superior products, but substantially superior products. They need to look better (and in some cases, the domestic models actually do look better than their import competition), but also have better reliability, better fuel economy, a nicer interior, and be priced competitively. It's a tough hill to climb, and it pains me to say it, but I don't think we'll see Detroit at 50% market share again, ever.

By the way, the title of this post is not intended to imply that Detroit is on its way to zero market share (although the trend line does move in that direction). At some point, it will level off, but who knows when that will happen? The glass is definitely half empty at this point.

25 June 2007

Mr. Lutz, Your Tin Foil Hat Is Ready


From The Detroit News

"This whole thing has nothing to do with energy policy, CO2 or the environment," General Motors Corp. Vice Chairman Bob Lutz told The Detroit News on Friday. "This is purely punitive; the 'big business haters' finally giving us our due for decades of 'colluding with oil companies' and 'forcing the U.S. public to buy big SUVs.'

"Make no mistake: these people hate us and want to inflict pain."

So it's come to this. the Vice Chairman of GM is complaining about black helicopters in the sky and a grand conspiracy against the domestic automakers, all because the government, who are looking after their own asses and ensuring that gas prices stay low and the trees all don't die, have decided to make CAFE have a bit more teeth.

Now, forget the arguments about CAFE, and whether it's a good thing or a bad thing for a minute.

CAFE has been around for a long time. And domestic manufacturers openly flouted the loopholes built into CAFE by spending most of their advertising and new product development dollars on trucks and SUVs, both classes of vehicles not affected by CAFE. They did this ON PURPOSE. There was no ignorance involved. They gave up markets with less margins where imports were making headway in order to take the easy road lined with SUV gold. And now that the farmer has figured out that he let the wolf take care of the chicken coop, they're pleading innocence and naivety. If it wasn't so funny, it would be disgusting.

The big problem in all of this is that the domestic manufacturers are now caught in their own endgame. No one takes them seriously anymore as purveyors of vehicles with good fuel economy, but they'll now be forced to market them. Just as the imports start taking aim at their lucrative truck market, and just as the money tree in their own backyard has started turning up rotten fruit. With less R&D money than the competition to develop new car platforms, and the competition going after the truck jugular, what next?

The obvious answer? Appeal to patriotism.

Chrysler Vice President Jason Vines, in an appearance on Mitch Albom's radio show Friday, lamented that America seems to be the only country where the government doesn't care about and protect its domestic auto industry. He said it was time to "give a damn" about an industry that creates jobs and wealth for hundreds of thousands of people.
Good sir- the government has given a 'damn' too many times in the past already. You dug your graves. Now pull yourselves out of them.

23 June 2007

Beware of the Fleet Queens

Yesterday, I came across some interesting data on fleet sales as a percentage of total sales for each car and truck sold in the US for the first half of the 2007 model year. There were some surprises and some non-surprises in reviewing the list.

Before pointing out some of the more notable items, let's talk about fleet sales. What is a "fleet sale" anyway? Well, auto sales are broken into two main categories: retail sales and fleet sales. Every manufacturer wants high retail sales, because they're not giving volume discounts on the vehicles, retail units are generally better equipped than the ones sold to fleets, and retail sales don't end up at auctions or used car lots for half of their original MSRP with 10,000 miles after only a year. Heavy fleet sales (and thus a large volume of fleet vehicles on the used car market) depress residual values of every one of that model, including ones sold to retail customers , making unhappy retail customers and likely further reducing retail sales.

Fleet sales can also be broken down into a few subcategories: commercial, government, and rental. The daily rental fleet sales are the worst kind, because the cars are driven by hundreds of different people during their time owned by Hertz or Avis, and not necessarily babied by their drivers. They are also quickly sold back to the manufacturer, as opposed to a car sold to a company for use by a sales representative, where he or she would keep the car for three years before turning it in. Also, having a substandard car in your lineup that is a "rental car favorite" is not a good way to turn renters into future buyers, because you're not putting your best foot forward as a manufacturer. For example, imagine if the general public thought that all GM sedans were on par with the Grand Prix, when the reality is that many are better.

The source of my data is http://www.fleet-central.com. Fleet Central is a website for automotive fleet managers and appears to be pretty comprehensive. Fleet percentages given are as a percent of the model's total sales midway through 2007 unless otherwise noted, and include commercial, government, and daily rental sales.

The Non-Surprises
Ford Taurus

Think about the cars you have rented over the past few years. Most likely, they were models such as Chevy Malibu (58.8%) or Impala (53.9%), Ford Taurus (96.5%), Pontiac Grand Prix (77.6%), etc. For this reason, these models are all leaders on this list. Some others on the list are not surprises; the Ford Crown Victoria, a government favorite (thanks to police departments) sold 91.3% of its overall sales to fleets, mostly governmental agencies. The Ford Econoline, a favorite of plumbers and contractors, was 69.2% fleet sales because not many retail buyers need or want the capability and size of a full-size van.

The Surprises
Dodge Avenger

This part is more fun, but it's not necessarily good news. There are some 2008 model vehicles, just introduced in the past few months that are already selling more than half of their production to fleets (and mostly daily rental fleets). Offenders include the Chrysler Sebring (63.5%) and Dodge Avenger (79.4%!!). No wonder Chrysler management is so concerned about those two vehicles and has implemented an immediate improvement program to make them more attractive to people who want to buy the cars, not just catering to people who rent them and don't get to choose.

Other relatively new models with somewhat high fleet percentages include the Kia Optima (52.8%), Dodge Caliber (45.1%), Ford Edge (32.0%), and Chrysler Aspen (31.2%).

The Fleet "Hall of Shame"
Pontiac Grand Prix

The following vehicles sold more than half of their overall sales to fleets; if you would like to buy one of these cars for yourself, you can probably get a great deal on a slightly used one, but you're likely to take a huge depreciation hit if you decide to be in the minority and buy one of these new from the dealer.
  • Chevrolet Express (58.4%)
  • Chevrolet Impala (53.9%)
  • Chevrolet Malibu (58.8%)
  • Chevrolet Uplander (70.9%)
  • Chrysler Sebring (63.5%)
  • Dodge Avenger (79.4%)
  • Dodge Caravan (54.8%)
  • Dodge Charger (56.2%)
  • Chrysler Crossfire (70.6%)
  • Chrysler PT Cruiser (61.8%)
  • Dodge Magnum (60.9%)
  • Ford Econoline (69.2%)
  • Ford Taurus (old version) (96.5%)
  • GMC Savana (50.9%)
  • Kia Optima (52.8%)
  • Mercury Grand Marquis (50.0%)
Study the list above carefully; odds are, next time you visit the rental car counter, they'll hand you the keys to one of the models above.

The full lists are available here:

Cars: http://www.fleet-central.com/af/stats2007/cars_web.pdf
Trucks: http://www.fleet-central.com/af/stats2007/trucks_web.pdf

20 June 2007

Chrysler Finally Figures Out How To Rid Itself of 2006 Models

I don't live anywhere near Detroit (about 550 miles away), but even I've heard the stories over the past year or two of Chrysler overproducing vehicles to keep the factories running, even in the face of falling demand for their products (particularly the larger, more fuel-thirsty ones). Since they were unable to convince dealers to take many of them, and still had a huge inventory problem, many of them were being parked in overflow parking lots at the airport in Detroit. There were acres upon acres of new 2007 Jeep Commanders, Dodge Durangos, and more.

Chrysler finally wised up a few months ago and discontinued this practice, after having at one time or another over 100,000 unsold, unordered new vehicles in the "sales bank." Chrysler watchers (or Iacocca autobiography readers) may recall that this very thing - the sales bank - nearly bankrupted the company in the late 70s/early 80s. This time, all it did was cause a multi-billion dollar loss, the head sales & marketing guy (Joe Eberhardt) to lose his job, and lead to much of the pressure that lead Daimler to unload the Chrysler part of its name.

Meanwhile, most of the damage was done. The sales bank vehicles were already built, and there were billions of dollars in finished goods inventory that nobody wanted, sitting in the Detroit weather, with birds crapping on them and the sun, rain, wind, and snow depreciating them. Last I heard, most of them had been accepted by dealers. But at this point, with many 2008 models hitting dealers, who wants to buy a "new" 2006 that was built almost two years ago, when 2007s are becoming heavily discounted?

Chrysler's solution to this was to basically allow dealers to buy the leftovers themselves. You see, dealers who held 2006s and used them as loaners or test drivers for as little as one day could be considered used cars, transferred to the used car lot, and counted as a new car sale. So, aside from helping to clear out excess [old] new car inventory, this policy change also bumped up Chrysler's May 2007 sales results. Previously, the rule was that a vehicle had to be a loaner for 90 days before it could be considered a used car. What's not clear is who is eating the loss in value - Chrysler or the dealers - when a vehicle priced at $30,000 suddenly becomes a $22,000 vehicle overnight. But if you're in the market for a new Chrysler vehicle, particularly one where there might be new 2006 models still out there, it might be a good time to go shopping. According to the company, there were 9,800 2006 Chrysler Group vehicles in dealer inventory as of May 31, 2007.

12 June 2007

The 10 Best Chrysler Vehicles of the Past 25 Years

The second in a series; click here for the 10 Worst Chryslers of the past 25 Years 30 Years. These are in no particular order.


Chrysler 300/Dodge Charger/Dodge Magnum (2005-present)
The LX cars are probably the best cars that Chrysler has ever built. They're big, stylish, bold, and are available with optional 6.1 liter 425-horsepower Hemi V8s. Plus, they have high-tech features like independent rear suspension (on a chassis derived from the Mercedes-Benz parts bin), five speed automatics, available all wheel drive, and more. The cars are also very popular with tuners; one of my favorite upgrades is the Bentley-style grille, but another common one is Lamborghini-style scissor doors. The platform is apparently very flexible, because a modified version of it will underpin the Dodge Challenger coming out in year or two. Further evidence of its success is the fact that GM and Ford are either producing, or considering producing, large RWD competitors to the Chrysler LX cars (Pontiac G8, Chevy Impala, and Ford Interceptor, for example). The only chink in their armor is an interior that doesn't match the promise of their powertrains, chassis, or exterior style, but Chrysler is aware of the problem and is working on it.

Dodge Caravan/Plymouth Voyager/Chrysler Town & Country (1996-present)
While Chrysler invented the modern minivan in 1984 and spawned an entire segment of copycats, and I give them credit for that, I cannot in good conscience rank the 1984-1995 original minivans among Chrysler's best efforts (severely underpowered, underdeveloped transmissions, sub-par fit and finish). However, the 1996 models ushered in the vans' first complete redesign, which meant a new platform, new shape, and new interior. Even though the 1996 vans look similar to 2007s, there was a pretty major mid cycle enhancement in 2001, and the vans were continually improved each year. These vans have deservedly proven to be a cash cow for Chrysler. The minivans also pass the "imitation is the sincerest form of flattery" test; Honda's and Toyota's vans weren't successful until they finally decided to copy Chrysler's formula.

Chrysler PT Cruiser (2001-present)
Though the PT Cruiser is getting a little long in the tooth, when it was introduced, it looked like nothing else on the road. It drew waiting lists and dealer markups on what was basically a taller version of the Neon chassis. The interior managed to strike an upscale, art deco tone with body-colored accents and nicely-grained plastics. The car's 2006 refresh cheapened the interior to knock it down to the level of other Chryslers, but the car is an icon and has likely exceeded all of its original sales goals. My mom wanted one when they first came out, but my parents never ended up getting one; they wound up with a 2004 SSR eventually instead.

Dodge Intrepid/Eagle Vision/Chrysler Concorde/LHS/New Yorker (1993-2004)
These cars made their debut under much hype at a time that Chrysler was in yet another financial crisis. They received much adoration and praise from customers and the automotive media. They were the first Chrysler vehicles to feature a "cab forward" design, which pushed the wheels to the corners of the car and the base of the windshield forward, partially over the engine. The result was a more aerodynamic, more modern look and increased passenger space. Having the wheels at the corners also improved handling, and the cars had extremely competitive engine offerings for their day. A close friend owned a 1995 Intrepid ES that he bought as a used demo model, and he put nearly a quarter million miles on it. Sure, by the end of its life with him, plenty of things stopped working, but it took a whack into a raised concrete median to finally bend the suspension and motivate him to sell the car. Last I heard, it's still on the road with its new owner.

Dodge Stealth (1991-1996)
The Dodge Stealth wasn't really a Dodge, but rather a rebadged Mitsubishi 3000GT sport coupe. On paper, the car was pretty awesome, especially in the top-level R/T guise: 300 horsepower, twin turbo, 5-speed manual, all wheel drive, four wheel steering, active aerodynamics, and tunable suspension. The Stealth carried Dodge's performance flagship banner admirably until Viper production began. The only downside with the car, other than high insurance premiums for the twin turbo models, was the extreme weight that all of the techno-goodies added to the car. Still, they were really neat cars, if perhaps a little boy racerish in a 1990s Pontiac sort of way.

Dodge Viper (1992-present)
What can be said about the Viper that hasn't already? For a while, it was the most powerful production car sold in the US. It made its debut with 400 horsepower, no air conditioning, no glass side windows, no ABS, and functional side exhaust at a time when the Corvette was just reaching the 300 horsepower mark. The 2008 version, once it finally goes on sale, will produce 600 horsepower! Visually, I prefer the first version, which had a much more aggressive shape than did the toned-down second generation models (which debuted in 2003). Carroll Shelby, though I think he's a huckster in many ways, had a hand in the development of the first Viper, and he truly did make it a spiritual successor to the Cobras of the 1960s.

Jeep Cherokee (1984-1991)
Jeep misses the XJ Cherokee so much that it's now tried three times (unsuccessfully) to replace it. First, the Liberty was supposed to be its replacement; it turned out to be more of a chick car than a credible Cherokee successor. Next, the Commander became a caricature of the Cherokee's styling, except it lacked the short overhangs and clean proportions of the original. Finally, the Patriot has a lot of the Cherokee's boxiness, and looks better than the Commander, but is based on a front-wheel drive car chassis. The XJ Cherokee had a huge following and was the vehicle that started the four door compact SUV craze. Sales grew every year, and the model survived long past its original cancellation date. In fact, they're still built in China.

Chrysler Crossfire (2004-present)
The Chrysler Crossfire was more or less a rebodied version of the R170 (1997-2004) first generation Mercedes-Benz SLK roadster. The interior (including instrument panel) is almost identical between the two cars, but the Crossfire has more silver-appearing parts while the Mercedes went for a wood look. The Crossfire SRT-6 even had a 330 horsepower AMG built engine. The looks weren't bad - certainly better than the Sebring that appears to be inspired by it - and it is a great way to get a Mercedes (more or less) for bargain prices. Unfortunately, they are very slow sellers and this model's days are numbered.

Plymouth/Chrysler Prowler (1997-2002)
The Prowler was a concept car come to life. It kept nearly all of the concept's good looks, except some compromises had to be made for the Prowler to be street legal and meet current safety standards. Although the front bumpers were a little awkward, many owners simply removed them. The car also had many aluminum components in the chassis. The only real problem with the Prowler was its V6 powertrain, which didn't quite line up with the promises its fantastic appearance made. This was addressed somewhat in later years with an upgraded engine, but imagine how awesome this car would have been with a Hemi. Only 11,702 were produced during a five year run.

Dodge Stratus/Chrysler Cirrus/Plymouth Breeze (1995-2006)
The so-called "cloud cars" were Chrysler's midsize sedan offerings, and were the third installment of the cab forward push at Chrysler Corporation (following the larger LH cars and the smaller Neon). Other than meteorological names, the cars also had pleasing designs inside and out - the wheels went to the edge of the fenders, even in lower trim levels, the dashboard had pleasant shapes, and they looked unlike any other car on the road in 1995 (well, the prominent grille did remind me of a 1992 Pontiac Grand Am). The cloud cars' styling later manifested itself in the 1996 minivans, and looked pretty good on those as well.

Coming up in the next installment: one of us will make fun of a different manufacturer, and then a few days later talk about some of the good cars it's made.

11 June 2007

The 10 Worst Chrysler Vehicles of the Past 25 Years 30 Years

The second in a series. These are in no particular order. Click here to view the 10 Best Chrysler vehicles of the past 25 years.

Eagle Premier (1998-1992)/Dodge Monaco (1990-1992)
The Eagle Premier and its rebadged cousin the Dodge Monaco were developed by AMC and Renault prior to AMC's purchase by Chrysler Corporation. It was a full size, FWD sedan styled by Giorgetto Giugiaro. The cars were unusual in that they had a longitudinal engine layout, which was later carried over to their successors, the Chrysler LH cars. The Premier was developed by AMC and Renault, was renamed "Eagle" following the merger, and launched shortly afterward. From all accounts, the cars were well-engineered and somewhat ahead of their time (more so than other contemporary Chrysler products), but they were prone to electrical problems and transmission issues. More importantly, they were sales duds - after selling over 40,000 units in the first two years, sales dropped off precipitously to a third of that, necessitating the rebadge called the Dodge Monaco. Combined, these two models topped out at 24,000 units in their best year together, and they were dropped in 1992. I can't STAND their styling, either; they look like overgrown Renault Alliances. Like they were styled by a T-square only. These AMC relics did, however, eventually lead to the well-received cab-forward Chrysler LH cars of the early 1990s.

Dodge Shadow/Plymouth Sundance (1987-1994)
These were Chrysler's compact cars immediately prior to the Neon. Like so many 1980s Chrysler products, they were a derivative of the K-car platform. They were cheap transportation (though more expensive than the Omni/Horizon that they ostensibly replaced). Chrysler kept churning these things out for years even though they lost money on them, just to help their CAFE numbers (sound familiar?) Toward the end of their life cycle, they were infused with a 3.0 liter Mitsubishi-sourced V6, but the cars were not mourned when the new "cab-forward" Neon hit the streets...

Dodge/Plymouth Neon (1995-1999)
Who can forget the cute "Hi" advertising campaign that introduced the world to the Neon? The car promised more space inside than its competitors thanks to its cab forward architecture. It also had a more powerful engine lineup than nearly all of its contemporaries did, and had a successful early career in SCCA Solo Autocross. Unfortunately, cost cutting led to issues such as frequent head gasket failures (remedied in later first-gen models) and peeling paint in certain colored cars (who hasn't seen a purple Neon with bare metal spots on the hood?) My dad (a used car dealer) has bought a handful of Neons over the years, and probably more than half of them have broken down on their way to the auction to sell. There were also very odd design compromises, such as rear windows that were hand-cranked even if the front windows were power, and frameless windows. The 2000 model introduced the second generation and improved refinement of the model, and is not as worthy of pointing at and laughing.

Plymouth Acclaim/Dodge Spirit/Chrysler LeBaron (1989-1995)
This trio of boxes on wheels was Chrysler Corp's midsize sedan offering of the early 1990s. While the rest of the world was moving to an aero look thanks to the Ford Taurus and Asian competition, Chrysler decided to go with a neo-Volvo look. The cars weren't ugly, but they weren't design leaders, either. Nor were they the engineering benchmarks of their day, as they rode on yet another K-car derivative platform (a full eight years after the first K-cars hit the streets). While the exterior theme was one of tasteful, if bland, rounded boxiness, the instrument panel's theme was just boxiness. My aunt used to work for Chrysler Corporation in the early 1990s, and she once visited us in a rental Dodge Spirit. When we checked out her car, she said that the buzz around the company was that they were intended as an E-class Mercedes competitor. Mmm hmm. At least the cars that replaced them were better. The only car in this group that gets a pass is the Spirit R/T, which had a 224-horsepower, turbocharged/intercooled four banger that kicked ass and took names.

Jeep Commander (2006-present)
The Jeep Commander is a half-assed attempt at a larger Jeep to compete with the (then) successful Hummer H2. Jeep was concerned that many of its competitors offered larger vehicles and would-be Jeep buyers would end up buying a competitive product instead. History is littered with management who tried to run with the cheapest way around a problem, and DCX management decided to rebody a Grand Cherokee, keeping the same wheelbase and optional powertrains, but with a larger, boxier body. The marketing message that buyers were supposed to get was that the Commander captured the style of the much-loved 1984-2001 Jeep Cherokee; the message that they got instead was that it looked like a caricature of that vehicle. Others called it the box that the Grand Cherokee came in. The result was an overstyled joke that was too big to handle itself as nimbly as a Grand Cherokee, and too small inside (particularly in the third row) to be a credible competitor to vehicles like the Pathfinder SE Off Road, Hummer H2, Chevy Tahoe, Ford Expedition, etc. It also suffers from the unimaginative Chrysler interiors of the mid-2000s with plenty of right angles and not enough quality materials. The Commander isn't going to see a second generation.

Dodge Aries/Plymouth Reliant (1981-1989)
Ahh yes, the venerable K-cars. These suckers may have saved Chrysler from bankruptcy in the early 1980s (thanks to their small exteriors, six-passenger interiors, and fuel efficient engines). Their platform eventually spawned nearly every front wheel drive Chrysler, Dodge, and Plymouth developed during the 1980s, including the minivans. That would be fine if it was a well-engineered starting point, but the K platform wasn't state of the art and was the victim of cost cutting. It was also engineered to be lightweight for fuel economy reasons, and in a cheap car, lightweight does not mean exotic materials, it means thinner materials and de-contenting. Like the later Neon, these cars had head gasket problems with the ubiquitous 2.2 liter fours, and Chrysler's attempt at marketing a Japanese engine in them (supplied by Mitsubishi as a 2.6 liter) backfired because those engines blew themselves up. They did sell more than a million units of these cars in a single (long) generation, but it's a safe bet there weren't a million happy owners. Oh, these cream puffs were the Motor Trend Car of the Year in 1981. These cars are also immortalized in song by the Barenaked Ladies in "If I Had a Million Dollars" with the line, "...I'd buy you a K-car, a nice Reliant automobile..." Funny, but repulsive.

Dodge Omni/Plymouth Horizon (1978-1990)
Yes - another MT COTY winner (1978!) These small cars were the first front wheel drive offerings by Chrysler Corporation designed to compete with the successful Volkswagen Rabbit. Imitation is the sincerest form of flattery, right? Because they look eerily similar to a Wabbit, and in fact early models even had VW-sourced engines under their hoods. The cars initially were poor handlers, so much so that Consumer Reports (yeah, I know...) rated it "not acceptable" because of the difficulty in handling the car in an emergency scenario. Toward the end of the car's life, when it was about to be replaced by the larger and more expensive Shadow/Sundance, Chrysler standardized some optional equipment and called them "Omni USA" and "Horizon USA," sales perked up to the extent that they were allowed to soldier on for a few more years. Whether this was a wise long-term decision is questionable. I remember riding in a friend's Horizon in high school. The only thing I liked about it was that I didn't have to ride the bus to go home.

Dodge Aspen/Plymouth Volaré (1976-1980)
These cars were considered compacts at their launch, but times changed so much during their lifespan that they were considered midsize at the end. The lineup consisted of a coupe, sedan, and wagon. My favorite part about these cars is that Lee Iacocca admitted in his self-named autobiography that the cars were rushed to market, and first year customers were basically the last round of quality control. I'll let you see it in his own words (page 169):
But the Aspen and Volaré simply weren't well made. The engines would stall when you stepped on the gas. The brakes would fail. The hoods would fly open. Customers complained, and more than three and a half million cars were brought back to the dealers for free repairs--free to the customer, that is. Chrysler had to foot the bill.

But then even cars that were mechanically sound started rusting. The Volaré's rusted fender program cost us $109 million--in 1980, when we could ill afford it. The fenders had rusted through because somebody wasn't paying enough attention to the process of rustproofing them. We weren't asked to recall them, but we had an obligation to our customers to fix them. Even though we stood behind them, the resale value of these cars plummeted, which hurt Chrysler's image badly.
The results were predictably disastrous; as Iacocca alluded to above, Chrysler was teetering on the brink of bankruptcy, with its only hope for survival resting on loan guarantees from the federal government and keeping their fingers crossed for the K-car's success. (Also, as a side note, two pages after his Volaré description, Iacocca talks about the sales banks of the late 1970s and early 1980s that sound strangely similar to the ones they had last year.)

My roommate in college had well-to-do parents, but for some reason, he drove a 1978 Volaré wagon, cream colored, with vinyl seats, slant six, automatic, and AM radio with a separate FM converter. I remember one night during an ice storm, I was all cozy in my dorm room watching TV, and he called me from a pay phone outside a grocery story 15 miles away and wanted me to pick him up because his Volaré stopped running. I had to borrow another friend's car in an ice storm just because his 17 year old Volaré was a POS. I drove it twice that I can remember, and the only thing I remember, aside from a serious lack of horsepower, was that the rear brakes were extremely prone to premature lockup.

Chrysler Sebring (2007-present)
This car is not a bad car - for 1999 - but considering what the competition continues to roll out (Hyundai, Honda, Toyota, FoMoCo, GM, Kia, etc.) - it's an unacceptable effort. Chrysler managers have admitted as much, as evidenced by a leaked memo expressing disappointment in the recent Sebring and Dodge Nitro projects (they might as well include the Jeep Compass in that list as well). The Sebring is a car that sounds pretty good on paper - powerful optional V6, six speed automatic, innovative interior features like heating/cooling cupholders, hard disk music storage, Bluetooth, etc. - all at a reasonable price. But the problem is, those features need to be integrated into an attractive package, which is where the Sebring falls flat on its face. Similar to the Jeep Commander in that it's a caricature of all recent Chrysler division styling cues, it combines the Crossfire's hood, the 300's gun slit windows, and a too-stubby trunk. The result is a chrome plated turd. Even worse, reviewers have called the interior materials "cheap." Perhaps one problem is that Chrysler admitted benchmarking only domestic models (apparently previous generation ones like the Taurus, Impala, and Malibu) that already were not the head of the class. The car's handling has also been described as "geriatric." Time to raise the bar, Chrysler.

Dodge Daytona (1984-1993)
This car is what happens when you try to turn the K-car platform into a sporty car. It had the looks (especially for 1984), but had no balls; the base engine was 93 horsepower and the optional engine in the first year was a more respectable 142 horsepower. The Daytona was restyled twice during its front wheel drive lifespan; its original style was a "tribute" to the 1983 Chevy Camaro. The first restyle added hidden headlamps, and if you really squinted hard, looked almost kind of like its namesake 1969 Dodge Charger Daytona (the one that chewed up its NASCAR competition, looks like a Plymouth Super Bee, but is more rare). The last restyle softened some of the hard angles and eliminated the popup headlamps. There is one exception to my panning of this car - the rare 1992 and 1993 Daytona R/Ts with the Spirit R/T's 224 horsepower turbo/intercooled four. This engine's heads were developed by Lotus, and it's the highest horsepower per liter of any engine Chrysler has ever sold to the public. It was the heart of a lion in a body and chassis straight out of the early 80s.

There were a few honorable mentions, but I'm getting lazy, so they only get listed:
  • Dodge Mirada (1980-1982): Batmobile wannabes
  • Chrysler Cordoba (1975-1983): Chevy Monte Carlo clone, but with "rich Corinthian leather"
  • Chrysler Aspen (2007-present): who exactly asked for these, other than Chrysler dealers?
Did I miss any? Did I wrongly throw any good cars under the bus? Any closet Volaré fans? (Doug, if you're out there, sorry I made fun of your wagon. I know it will be in your museum someday.)

Coming next: The 10 Best Chrysler Vehicles of the Past 25 Years. Stay tuned.

17 March 2007

Failed Platform: DEW 98


When the Ford Motor Company introduced its new global midsize RWD platform in 1999 underneath the 2000 Lincoln LS, it was met with great fanfare by the automotive press. The LS garnered Motor Trend’s Car of the Year award and was nominated for North American Car of the Year. With such jazzy features as rear-wheel drive, a manual transmission (V6 only) and an available V8, the LS seemed like a great mix of attainable luxury and unpretentious sportiness.

How did the marketplace react? In 1999, it sold 26,368 copies. Its first full calendar year, 2000, saw sales hit 51,039. Ford had a mini-hit. How did mother-Ford nurture its nascent sedan? They starved it. It was treated to one update (in 2003) before becoming a V8-only $45,000 has-been. Anyone remember seeing an LS ad anytime between 2004 and 2006? I don’t. Sales collapsed to 19,000 by 2005 and less than 9,000 found [ostensibly] willing buyers in 2006 before the axe fell.

Soon after the LS hit the streets, Jaguar twisted the DEW architecture into the base for the retro-fabulous S-type. Its 2000 CY sales were 24,507—by far the most popular Jaguar that year. Of course, being the cheapest one in the lineup probably helped the S-type attain the sales crown. Over the years Jag tried to keep buyers engaged with a refresh or two and a supercharger, but that wasn’t enough to stave off the grim reaper: just 5,875 customers gave this cat a home in 2006. The S-type is to be taken under in 2007.


Where did Ford take this globe-trotting platform next? Well, back to the ‘50s of course. The 2002 Ford Thunderbird took the DEW98, added some ‘50s styling clichés and removed all of that era’s intrinsic automotive design charm and served it up with a weak power plant and a high base price. The car sold well for about five months. Then Ford decided that it needed to upgrade it for the ’03 MY. This decision, however, came a little late in the planning process. As such, Ford had to extend the ’02 MY well into what should have been the ’03 MY. Compounding the problem was the fact that dealers were now fully stocked up on left-over, convertible, RWD cars with winter sneezing on their doorsteps. Consumers wisely stayed away. The Thunderbird never regained its momentum. Sales fell from 19,000 in 2002 to just 9,500 in 2005 when Ford once again stopped producing the ‘Bird. It was destined to be the last vehicle Ford would develop on the once promising DEW98.

What went wrong? This:

1) Lack of flexibility in design and manufacturing
2) Expensive to produce (and Ford cordially passed that expense onto its customers)
3) Starved for development funds
4) Terrible marketing for all model-lines

Had the platform been cheaper to produce and more flexible, then the Mustang could have been its savior. Alas, that wasn’t meant to be. Ford had to modify (i.e.: cheapen) the DEW98 to such an extent that it had to become a whole new platform (D2C) before the galloping horsie could have a new home in 2005.

Ford completely missed a lucrative opportunity. Rear-wheel drive is decidedly in fashion—so long that it’s affordable. Chrysler did everything right with its RWD LX platform that Ford did wrong with the DEW: It is flexible, cheap, isn’t being neglected, manufacturing is consolidated to one plant, and the vehicles built off of it were brilliantly marketed at launch and consistently advertised. GM has found success with its Sigma Cadillacs and is poised to follow suit in ’08 with its inexpensive Zeta sedans and coupes. All Ford has to offer rear-wheel-drive buyers is its 28-year-old Panther cars and a niche-market Mustang.

Imagine if the Five-Hundred came out on a DEW-derived platform with the Mustang 4.6L V8 under the bonnet and styling that wouldn’t get lost in the bread isle of your local A&P? It most certainly wouldn’t have been demoted to Taurus status.

What looked like the start of a good thing was merely a brilliant flash in the pan. How typically Ford.