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I will weigh in on this. I could be wrong, but it is best not to underestimate anything from DCX - Mercedes through Jeep. Juergen Schrempp said "Expect the unexpected" from DCX. Meaning, the Hemi Magnum may price at $29,000 to $30,000, but don't be surprised to see them selling a police version in the neighborhood of the Crown Victoria police car. It will probably be a little higher in price, but then, the DCX sales staff will promote the Hemi, more room, better safety, better quality, and a host of other items to get police forces to switch. Meanwhile, Ford will sit on its hands and falsely believe the Crown Vic will always stay the number 1 cruiser and GM will sit on the sidelines looking in. Never underestimate the Germans' abilities to make the American execs look stupid. The Japanese have been doing it over a decade, and now the Germans have entered the arena.
 

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Originally posted by MelvinJ+Jun 27 2004, 12:01 AM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (MelvinJ @ Jun 27 2004, 12:01 AM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-AJR@Jun 26 2004, 11:46 PM
I will weigh in on this.  I could be wrong, but it is best not to underestimate anything from DCX - Mercedes through Jeep.  Juergen Schrempp said "Expect the unexpected" from DCX.  Meaning, the Hemi Magnum may price at $29,000 to $30,000, but don't be surprised to see them selling a police version in the neighborhood of the Crown Victoria police car.  It will probably be a little higher in price, but then, the DCX sales staff will promote the Hemi, more room, better safety, better quality, and a host of other items to get police forces to switch.  Meanwhile, Ford will sit on its hands and falsely believe the Crown Vic will always stay the number 1 cruiser and GM will sit on the sidelines looking in.  Never underestimate the Germans' abilities to make the American execs look stupid.  The Japanese have been doing it over a decade, and now the Germans have entered the arena.
Well, if they want to give them away, that's certainly one way to get police departments to accept them. I just don't know their motivation for going after them that hard. What's the plant capacity on these cars? Aren't they selling beyond projections now? Why would they take up plant capacity for slim-margin fleet sales when they could be selling retail units? [/b][/quote]
They could have several factors for motivation. These are just some ideas I have. They may be true, may be not.

1) The rebirth of Chrysler. A few years after Daimler took over Chrysler and replaced the Americans with 2 Mercedes execs, these execs held a meeting with the then angry and distraught Chrysler employees. These guys promised to bring Chrysler back to number 1. They promised that under Daimler's control, Chrysler was going to become a force to be reckoned with like its glory years. Chrysler used to own the Police sector with the old Dodge Monoco, Plymouth Fury, and even the Dodge Diplomat. Chrysler has not been in that arena in a while, so what better way to build optimism and pride than for Chrysler to recapture a market it owned for so long. I think it is an ego thing.

2) No acceptable police/fleet vehicles being sold in the U.S. My guess is that the Daimler folks see an opportunity to give America "high quality" police and fleet vehicles. Even though Mercedes cars are used in Germany as taxis and other items, they don't want Mercedes to be used like that in this country. Being that Daimler wants to control everything (it is also the world's largest truck seller), they feel a need to "get in on the action" in this section of the American market. Since Mercedes can't do it, why not Chrysler? I really think Daimler sees the Crown Vic and Impala as poor excuses as police vehicles and they think they have the formula to do it right. The people in Auburn Hills have bought into it, as they see this as Chrysler's chance to take back what is theirs, so they start pummeling the Crown Vic and Impala in the marketplace.

3) Chrysler wants to prove itself to the market. Not only is it making Hemis and such, but now it can join the fleet arena and be one of the big boys. Chrysler no longer wants to sit on the side and watch Ford and GM meander along in it.

4) Attitude - of which DCX has plenty of. If people have read the press releases of the Dodge Power Wagon and the SRT-10 club cab, you would see that DCX not only intends to beat the competition, it wants to "decimate" it.

5) Because police forces have been begging Chrysler to give them a police packaged Intrepid for ages. Apparently, they want the Magnum more than ever. They want out of the Crown Vics and Camaros.

As for money, I wouldn't worry. Duetsche Bank is keeping them healthy. Plus, they are getting $1 billion from selling 10% of Hyundai, slowly letting go of Mitsubishi, and selling Chrysler assets.

As for overcapacity, that is a good question. Don't count that as a strike against them, however. They have found more ways to turn negatives into positives.
 
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