Chrysler Oh Chrysler, Where Art Thou?

So, it seems that Chrysler is inching ever closer to the abyss. This is truly dissapointing, given the Chrysler should have been the poster child for bailouts. When Lee Iaccoca steered the company away from the abyss, with the help of a major bailout loan, he did so driving a series of new and clever vehicle designs (ok, the K-car was pretty bland, but it was revolutionary in that it introduced front wheel drive and smaller vehicles into the American mainstream of domestic cars). The initial lineup included a snazzy fastback, a european-inspired hatchback and the K-car. Chrylser then followed with the minivan, for which Mr. Iacocca has been nominated for sainthood by the Soccer Moms of America. With these vehicles, Chrysler got design cred on the street.

Interestingly, Chrysler let its truck lineup languish until around 1994 when the new Dodge Ram lineup appeared, and it too was a design hit. Profits form trucks and SUV's proved to be addictive, however, and this may have something to do with the demise of Chrysler.

Quality was never outstanding, despite revolutionary designs, and in the end, lower pricing did not trump consumer confidence. Belatedly, Chrysler has tried to improve these quality pecadilloes but on a shoestring budget and no cash, what can they really accomplish at this point?

There was of course the much celebrated (and then despised) "merger" with Daimler Benz. In theory it was a match made in heaven. Chrysler design for dowdy german vehicles in exchange for German reliability and engineering. But strange things happen when strange bedfellows get together. Egos, corporate culture and resentment spelled disaster. Chrysler did get some of the slightly past the "use by" date technology, including several bits of the last generation E-class engineering (Charger, 300C, among others) and CLK (Crossfire). The Germans, however don't merge well. Look at BMW and Rover. OK, they got the Mini and ran with it. But they got Land Rover and promptly introduced a BMW SUV, the X-5, instead of using the synergy to develop an SUV with off-road credentials.

The result is that Chrysler desperately needs suitor. The problem is, who is going to buy an ailing car maker in 2009? As I have scribbled in the past, Chrysler is a tasty cake in small slices, but no-one wants to take the whole thing home for fear of indigestion. My bet is, someone will be buying Jeep, and soon.

Has The Era of European Luxury Sedans in the US Ended?

There will always be a market for luxury European vehicles in the US. However, the recent downturn in the economy and the prices of these vehicles, fueled by unfavorable exchange rates, have got me thinking.

In fact, what I predict is that demand for the lower end of these vehicles as well as their SUV's will begin tapering off as younger buyers begin to realize that some Asian brands, while not as exciting to drive, are in fact just as good, and have fewer negative compromises (more comfort less handling rather than great handling and rock hard suspensions for example). And let us not forget the domestic brands, that, while not having the cachet, have produced some very fine automobiles, of late.

Yes, Dad, owning a BMW is great but as I drive to work, I don't want to count expansion joints and potholes with my rear end. And I don't need a car that will rocket me from zero to eighty in 8 seconds, if my average commute speed is 25 MPH. And I don't need another ticket, as I test out the top end on the Interstate. All this comes under the title "nice to have" when money is short.