Chrysler Puts Pedal to the Metal on New Models, Report Says
September 24, 2009
Addressing its glaring problem of an empty product pipeline, Chrysler will do a speedy makeover of at least five models by mid-2011, along with 
introducing the 2011 Jeep Grand Cherokee and redesigned Chrysler 300 that year, as part of a five-year plan reportedly being submitted to the automaker's board by Fiat CEO Sergio Marchionne on Friday.
The Detroit Free Press reports Marchionne wants makeovers accomplished within a quick 18 months on the Chrysler Town & Country and Dodge Caravan minivans; the Dodge Caliber, Jeep Compass and Jeep Patriot compact crossovers; and the Chrysler PT Cruiser, which Fiat revived from the to-be-killed list.
The Fiat 500 minicar will be built at the Toluca, Mexico, plant that also assembles the PT Cruiser, for a mid-2011 U.S. introduction, the newspaper reported.
Following board approval of the future product plan, Marchionne reportedly will then submit it to President Obama's automotive task force as early as next week, the Free Press reported, quoting unnamed inside sources.
Surprised by Empty Pipeline?
Marchionne told reporters covering the Frankfurt motor show last week that the new Chrysler five-year plan would be ready in November. He was widely quoted in various publications as saying he was surprised at how little had been done at Chrysler in the past 24 months.
He could hardly have been surprised. Fiat executives crawled all over Chrysler plans and plants performing their due diligence in advance of taking a 20-percent stake in the automaker.
Chrysler's blank future product plan has been widely known and has long been cited as a key danger to its survival. Chrysler's previous owner Daimler, having given up, allowed the automaker to languish. Owners Cerberus Capital Management made cost-cutting the prime activity at Chrysler durings its ownership tenure.
What About the Next 18 Months?
Despite Marchionne's finger-in-the-dam plan, Chrysler has a tough 18 months to survive before the new models arrive on dealer lots. As U.S. sales begin to tilt upwards, the automaker has virtually nothing new to offer consumers returning to showrooms, in an industry in which th automaker with the newest and best product generally wins.
Even when the spruced up models arrive, is a freshening enough? Will they be the right products for the market then?
Getting the Job Done
In the interim, Chrysler has slashed its employee ranks so deeply that it doesn't have the manpower to get even the refreshes accomplished.
The Free Press reports Chrysler will rehire an unspecified number of salaried workers and require current employees to put in overtime to get the job done. Re-hiring requires the blessing of the U.S. government, which owns part of Chrysler and is funding its bailout. The United Auto Workers union, having provided Chrysler with concessions to get out of its financial mess, will have a say in re-hiring as well.
Indeed, skuttlebutt on the streets in Detroit in recent weeks has indicated Chrysler is in a manpower crisis and is exploring ways to get the help it needs, including hiring people, tapping suppliers for resources and taking on contract workers. -- By Michelle Krebs, Senior Analyst and Editor at Large
Photo by Chrysler
1 - The 2011 Jeep Grand Cherokee is one of only a couple of redesigned models Chrysler had in the pipeline when Fiat took charge.
Posted by Michelle Krebs at 5:04 AM under Chrysler , Featured , News , Personalities | Comments (1) | digg this | Seed Newsvine
Anyone they might want to rehire should still be around, unless the bank already foreclosed on their house.
Posted by: mkaresh | September 24, 2009 at 7:01 AM