AutoNews: Chrysler Moves To Spiff Up Sagging Sedans

[megeebee]

Chrysler moves to spiff up sagging sedans


Bradford Wernle
and Robert Sherefkin

Automotive News | December 24, 2007 - 12:01 am EST


DETROIT — Chrysler LLC has begun an emergency overhaul of its new mid-sized sedans, the much-criticized Chrysler Sebring and Dodge Avenger.

Sales of the two cars, which share a platform, have been hugely disappointing. A team being assembled for the crash program, called Project D, will concentrate on redesigning the interiors, according to a supplier executive familiar with the program.

The team will include some senior managers and directors who took recent buyouts and are returning as contract employees, the source said.

Critics have blasted the sedans for the cheap plastic look and feel of their interiors.

The Sebring debuted in the fall of 2006, and the Avenger was launched in January. Both have struggled to find retail buyers.

Meanwhile, CEO Bob Nardelli is adding firepower to Chrysler's purchasing department in an effort to reduce costs.

Nardelli, former chairman of Home Depot, has brought the retailer's former purchasing boss, John Campi, to Chrysler as an adviser.

Simon Boag, Chrysler's purchasing chief, said he is working closely with Campi. Before going to Home Depot, Campi worked at DuPont and General Electric and is regarded as an expert in cost control and global supply chain management.

Nardelli is caught in a cash crunch as he labors to fix Chrysler. Cerberus Capital Management LP, which owns 80.1 percent of Chrysler, has a cushion of about $10 billion in cash. Nardelli is in a race against time to improve Chrysler's products while bringing costs down and increasing profit margins.

Cerberus borrowed the $10 billion from five major banks to fund Chrysler's cash needs during its turnaround. Collateral for the loan is all of Chrysler's assets, including trademarks, factories, real estate, receivables and inventory.

Those banks planned to syndicate those loans with other lenders. But the plans have been postponed twice because of lack of investor interest. Analysts say that won't hurt Chrysler operations directly but could make it more difficult for Cerberus to raise additional funds for Chrysler in the future.



Sales of the Chrysler Sebring have been a huge disappointment.



SOURCE: http://www.autonews.com/apps/pbcs.dl...plate=printart

SUBSCRIPTION

[megeebee]

A "disappointment", I'm sure. But not suprising. I mean, LOOK at it!

[t-rex]

It's hard to believe someone in management green-lighted those eyesores.

[megeebee]

Originally Posted by t-rex

It's hard to believe someone in management green-lighted those eyesores.

It doesn't suprise me too much. The other awful Daimler design is the new Mercedes C:

[Butz]

I can't believe Chrysler went ahead with such an eyesore and I've actually seen it once on the road, and it wasn't a rental!
Who in his/her right mind will buy such a vehicle!
Glad to see it go.

[Andonis]

Originally Posted by megeebee

It doesn't suprise me too much. The other awful Daimler design is the new Mercedes C:

Fully agree!!!

[rueben44]

I like the exterior look of the C class just not the interior. What shocks me is the big gamble these guys are taking. Basically they got the company with all of their cash and borrowed all they could in hopes the first and only volley of products would do the job. Takes brass you know what to think you can bring down cost and introduce solid new product fast enough to turn it all around. To top it off if they fail they will lose all of their Chrysler holding!

[JBsZ06]

The mercedes C class is a wonderful design. Not quite as nice as the CTS but really a good looking car if somewhat slow.

The Chrysler twins ...are sooo ugly I couldn't ever look at them in my garage.. even if it were free...I wouldn't take it.. Its that bad..

The dodge less so...but still no power...no guts...no sales....

They are ugly and the competition is better...

Its not just the interiors.. its primarily the exteriors and powerplants..

Give the car some b@lls.. and some good looks.. both inside and out...

And then price them competitively...

Should have just slashed the design completely.. as a cost cutting measure...

[HoosierRon]

If Chrysler goes bankrupt, here is why:

Meanwhile, CEO Bob Nardelli is adding firepower to Chrysler's purchasing department in an effort to reduce costs.

Nardelli, former chairman of Home Depot, has brought the retailer's former purchasing boss, John Campi, to Chrysler as an adviser.

[1999 White C5 Coupe]

Chrysler has abandoned its customers that prefer larger, front-wheel drive sedans such as the two previous generations of the Intrepid (and its Chrysler twins).

I bought a 1996 and 1998 Dodge Intrepd. The 1998 Intrepid ES was huge inside and rode very well on the highway. It was a very comfortable car.

I suspect Chrysler thought that customers would buy the smaller sedans to replace the Intrepids - but they were wrong.

Yes, I know the 300 replaced the Intrepid - but it is rear-wheel drive and is NOT a replacement for a front-wheel drive sedan in the snow belt.

[KIDDIESEL79]

Sorry, I like the new C-class. Tail reminds me of an Audi A4, and the interior is bland , but I relly like it.

[tripowergto]

I recently rented a Sebring in San Fran and simply could not believe what a horrible overall car it was. I could not find one redeeming quality in any aspect of it. The hard Fisher Price plastic steering wheel was so thick and uncomfortable in my hands it actually cramped my hands while driving. Compared to a G6 rental, the G6 was like driving a Porsche. How the Sebring was ever brought to market is beyond my comprehension!

[LAMRONH]

Originally Posted by HoosierRon

If Chrysler goes bankrupt, here is why:

As I read the article I was thinking, "Iraq, contractors at 10 to 100 times the going rate, fat deals for friends, no accountability, no audit trail, questionable competence of top management, screw the grunts again..." [BTW, this is not commentary on Gen. Petreus.]

So Nerdelli is bringing in some of his homies who just cashed in...excuse me, but this looks more like a looting than a top management team.

I'm sorry, folks, but I don't think a bunch of not-auto-oriented dildoes is the path to The Promised Land of Automotive Sales Success.

If Chrysler wants a competitive large FWD sedan, they should re-form the Intrepid/Concorde/300M team, give them two months to create their wish list and engineering plans, update the 2nd gen LH cars with the 6-speed and the 4.0--replace the weak POS 2.7 with a 210 HP 240 TQ 3.8 ohv at a later date--and by Jan. 2009 they can have some nice cars on the road. Meanwhile they can be working on a styling refresh.

If Chrysler wants a competitive corporation, they should dump nerdelli and his cronies in the nearest home depot dumpster, jettison overpriced Jim Press and the other high priced contractors, and use some of the remaining internal talent that the krauts didn't run off.

Yes, I know, "That would never work."
Dumping the LH cars was just one more of innumerable stupid decisions that mismanagement made. Do they actually wonder why the hell they're in trouble?
Or are they just there for the loot-n-scoot party?

[BrickTamland]

Those cars need more than a new interior. But it is a start.

Then they need to do the same "spiffing up" to all other cars they launched from 2006-2008. All of them.

[Stéphane Dumas]

Originally Posted by LAMRONH

Yes, I know, "That would never work."
Dumping the LH cars was just one more of innumerable stupid decisions that mismanagement made. Do they actually wonder why the hell they're in trouble?
Or are they just there for the loot-n-scoot party?

Also add to the list, the absence of a smaller 4-door sedan, the role taked by the ill-fated Neon/Canadian SX 2.0