What American automaker best matches up with the uber-machines from the Germans? Lincoln... no, probably not. Cadillac? Getting warmer. How 'bout Chrysler, asks ChryCo. co-Prez Jim Press. After a quick review of Chrysler's current line-up, we're not really buying the comparison; but it's fun to dream, so we'll bite. The Sebring is roughly the size of the C-Class and 3 Series, but it's driving the wrong wheels to go head-to-head with BMW and Mercedes-Benz, so that would need a complete rework, to say the least. The 300C is a very nice car with an appropriate engine up front, rear-wheel drive and a relatively attractive price compared to the Germans. That could work, but it's clear that Chrysler would need to pump lots more money into the car to keep it up to date with it's competition from Germany. Minivans don't equate very well to any Germanic rivals, especially since the R-Class from MB has been a major disappointment. One possible area that Chrysler has over its supposed competition is trucks. The new '09 Ram may be a major step up from its predecessor, but we're not so sure we're ready to call it the Mercedes-Benz of pickups, which is pretty much how Press says he sees it. We're all for the idea of an American competitor for Mercedes and BMW, and we'd love to see the Pentastar emerge from its financial problems a leaner, more focused manufacturer. Still, we wonder if Chrysler should set its sights on cross-town rival Cadillac before jumping all the way to Germany.
Chrysler's "sales bank," the loathed program in which the automaker continues to manufacture and stock cars regardless of demand, is supposedly back through the end of the year. Chrysler LLC co-President Jim Press delivered the news to dealers on Friday during a nationally telecast conference call when he mentioned that district managers will be calling dealers trying to offload 12,000 units of unassigned inventory.
Dealers left the call gasping for air, recalled the summer of 2006, when Chrysler had nearly 650,000 units in the sales bank. At the time, there was a 91-day supply of vehicles. Today, with about 400,000 units in inventory, the automaker is sitting on a 117-day supply. While Chrysler claims repeatedly that they only make cars that dealers order, and have reduced production to match market share and plunging sales -- down nearly 28 percent this year -- stocks are still up. Why? According to a second report by Automotive News, Press clarifies his statements to the trade pub, saying that the vehicles being hoisted onto retailers were all ordered by dealers and later canceled due to dealerships that have closed, unsold vehicles from sales promotions, fleet customers that backed out or buyers that weren't able to secure financing. Despite the fact that dealers supposedly ordered these vehicles with the intention of selling them, we fail to see how pushing 12k in unsold product doesn't constitute a "sales bank" program.
Chrysler has unveiled a few plans for the future and, rather than using past successes to carve the path, will adapt its course according to the changing market. While speaking at the recent Western Automotive Journalists' dinner, Chrysler President Jim Press touched on the need to generate brand identity amongst Jeep, Dodge and Chrysler. While each brand currently has a core theme, Jeep – off-road, Dodge – volume and performance, Chrysler – affordable luxury, there have been many recent deviations, such as the conglomeration that is the Jeep Compass. Press hopes to put an end to that trend and focus the company's aim at the automotive enthusiast. Toyota can keep the automotive appliance title, Press wants Chrysler to appeal to drivers rather than consumers. Nevertheless, actions speak louder than words and Press backs up his claims through the current curtailing of vehicle production and the scheduled release of seven new vehicles come 2010. Like other manufacturers, Chrysler is aggressively pursuing alternative powertrain configurations, particularly electric drive. In case no one has noticed yet, 2010 will be a big year for the American automotive industry. It will be the point when the roller coaster ride reaches its end and some folks end up with motion sickness while others get a rush of adrenaline. Hopefully Chrysler can find themselves in the latter category.
If you have a Dodge Ram in the driveway and someone claiming to be Jim Press calls you asking if you're satisfied with your truck, it just might be him. Chrysler recognizes that it has a customer service problem, and the Pentastar is going to extraordinary lengths to correct it. Its top 300 executives and directors are participating in a program called "Customer First" that puts a priority on -- you guessed it -- the customer. The executives, even guys named Nardelli, Press, and LaSorda, are responsible for at least one customer call per day, and all execs will man at least one shift at Chrysler's customer call center.
The Pentastar elite are also partaking in a three month competition to see who can generate the most sales. We don't know what the prize is for the winner, but whomever claims top sales should get something really, really good. Like a lifetime supply of Chrysler Sebrings.
Jim Press has found that his comments have landed him somewhere between a rock and a hard place, with his current position at Chrysler on the one hand and his former employers at Toyota on the other. In an interview with BusinessWeek, Press claimed that the Japanese government had directly subsidized the development of the Prius hybrid. Toyota spokesmen were quick to refute Press' comments, pointing out that their former executive had given statements directly to the contrary in the past, including testimony to the U.S. House of Representatives.
Chrysler, in turn, has now issued a statement clarifying its president's remarks. A release posted on the company's Firehouse media blog claims that Press was "not speaking negatively of Toyota." The Japanese auto giant would clearly disagree, but the statement goes on to clarify that Press' comments were intended to highlight the need for closer cooperation between Washington and the Big 3, along the lines of the relationship which Press claimed exists between Japanese government and industry. Hardly a reversal of position, and somehow we doubt this will be the end of the row.
Jim Press worked for Toyota in the U.S. a total of 37 years, so the Japanese automaker was no doubt shocked when the current co-captain of Chrysler LLC dropped a bit of untruthiness about his former employer in a recent Business Week article. Press claimed that the Japanese government paid for 100% of the development of battery and hybrid system of the Prius, an advantage that U.S. automakers don't receive from their government. Today, Toyota came out and said Press was just plain wrong. A Toyota spokesman claims that Toyota received absolutely no money from the Japanese government for developing the Prius. Who is telling the truth? We have no idea, but until Press parted his lips in this Business Week report, we had never heard of allegations that Toyota received funding for the Prius from the Japanese government, let alone that the vehicle's hybrid powertrain development was entirely paid for by the government.
Chrysler president Jim Press saw what hybrid technology did for Toyota, and now the 37-year auto industry vet wants to repeat that success with the Pentastar brands. Press informed attendees at a seminar in New York recently that Chrysler would one day utilize hybrid power in each and every Dodge, Chrysler and Jeep. Of course, the charismatic exec had no timetable for Chrysler's full immersion into the land of hybrid hyperbole, but we would guess that kindergarteners may be ready for college by the time this happens. Before Press finished, he also mentioned an intention to sell as many Chryslers in other markets as the Auburn Hills-based company sells in the States.
While it's easy to kick Chrysler when it's down, the privately-owned company has to aim high or it won't have much of a chance. From the day Press entered Chrysler's hallowed halls, he's had a consistent message that the company would have plenty of alternative powertrains for its vehicles. Maybe we'll see Press one day driving down Woodward in a Dodge Zeo. OK, probably not.
Chrysler's previous consolidation strategy, dubbed "Project Alpha," was implemented in 2004 to trim and combine dealers. All told, Chrysler was able to cut its dealer network down from 4,000 to 3,600. Not nearly enough to get outlets on par with demand. So Chrysler's co-pres, Jim Press, announced today that Project Alpha is out and Project Genesis is on the way in.
According to Automotive News, as you read this, business teams are fanning out across the U.S. to negotiate with dealerships to either buy other outlets or sell their own in an effort to pair down Chrysler's bloated sales network. The plan is to get all three of the automaker's brands – Chrysler, Dodge and Jeep – under one roof, with the possibility of creating satellite dealerships and service-only facilities in outlying areas.
But if all of Chrysler's wares are in plain sight of the public, won't that confuse consumers with all the product overlap between brands? Yes. And that's why Chrysler is looking to nix models that are badge-engineered duplicates of other vehicles offered by the automaker. So in addition to killing off the PT Cruiser, Pacifica, Crossfire and Magnum, more models are about to be cut out of the line up. We'd mention a few suggestions here, but we're sure you can come up with some of your own.
However, it's not all about the cuts. Press went on to say that Chrysler would develop new models to compete in segments that the automaker previously hasn't pursued and that even though sales outlets are going to be consolidated, Chrysler doesn't have the ability to hand out massive checks to dealerships on the chopping block.
Jim Press thinks that there's an emerging market for small, fuel efficient trucks. You know, the kind of trucks his former employer, Toyota, used to build. Press put in 37 years at Toyota, and he saw the evolution of the HiLux into the Tacoma, which is no longer the diminutive hauler it once was. Press owns a second home in Thailand, and observing how trucks are used in that country leads him to believe that there's a worldwide need for a small, versatile pickup. Dodge's Dakota saw its sales drop by one third between 2006 and 2007, and Press thinks that's likely due to buyers shifting to crossovers.
There's not a whole lot of incentive to buy a midsize truck right now – they cost nearly the same as an entry level full sizer, the mileage is only marginally better, and the size differential isn't that great. We can recall two Dodge concept pickups of the recent past that we think buyers who miss the small pickup market might take a liking to. First, there's the 2006 Dodge Rampage Concept, which packed a lot of utility in a small footprint. Then there's the 2002 Dodge M80 Concept, one of the few Chrysler concepts that got a great reception but wasn't produced. Put the M80 into production on a unibody platform with some unique powertrain options, Jim. Trust us, you won't be sorry.
It did not take Toyota long to leave in order to recover from yesterday impact announcement to that its North America HauptJim press planned, the fold for Chrysler. Press will leave the company, which it worked on on for 37 years on that 14. this monthly. Inside, around its point to fill is the present vice-president of Toyota North America, Shigeru Hayakawa steps.
The decision, from Hayakawa to to appoint is not one knee jerk to reaction for from yesterday impact fairly. Hayakawa is fair to filling out in no case. Like press he worked also at Toyota for more than three decades and under Chryslers new VP for the last year served.
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