Chrysler Parts-A Legacy of Innovation

Chrysler was founded by a man who had a reputation for saving foundering companies. Walter Chrysler rose from the ranks to become the president of Buick. He resigned from his position and was hired by Willy's Overland Motor Company to supervise the rehabilitation of its ailing operations. He did a similar job by turning around the Maxwell-Chalmers Company. In 1925, he purchased Maxwell's assets to form the firm that still bears his name - Chrysler Corporation. Aside from the Chrysler marque, the Plymouth and DeSoto marques were created to cater to the low priced and medium priced ends of the market, respectively. Chrysler acquired The Dodge Brothers Motor Company and by spinning off Imperial as a separate luxury brand in 1955, Chrysler has assembled a five-brand lineup to compete with General Motors, which has a similar offering.

What sets Chrysler Corporation apart from other car manufacturers is its emphasis on automotive engineering rather than styling. Walter Chrysler supported engineering research and continued funding the department even through the Depression era. Because of this, Chrysler cars have been at the forefront of automotive engineering since Chrysler Six, Chrysler's first car introduced in 1924. The Chrysler Six is touted by many as the first modern car, scoring several firsts in the industry such as an oil filter, air cleaner, high compression engine, four-wheel hydraulic brakes, and other advanced Chrysler parts. Innovation also resulted in part from the input of brilliant engineers throughout Chrysler's history who invented those Chrysler parts and pushed the envelope of automotive engineering. The Three Musketeers, a trio of talented engineers composed of Frederick Zeder, Owen Skelton, and Carl Breer set the direction during Chrysler's early years.

The Chrysler Corporation has gone through a series of financial difficulties, but it has always pulled through. The Plymouth and Dodge brands sustained the company during the Depression, when its introduction of the world's first aerodynamic car, the Airflow, proved a failure. National recession again put the company in the red in 1957 but continuing innovations like the now-standard unibody helped the company recover. The 1970's proved costly to Chrysler. Its big investment for a new full-body lineup went down the drain as demand for large vehicles plummeted during the first gas crisis in 1973. It was saved in turn by a spike in sales of its old but smaller compacts. Unsuccessful product launches and the second gas crisis would have killed Chrysler if not for the 1 billion dollars the government loaned in 1979 to bail out the company. With Lee Iacocca at the helm and with a new trio of talented car designers, the Gale-Herlitz-Creed team, Chrysler steadily recovered and became once again, a dominant force in the American automotive industry. in 1998, Chrysler merged with Daimler Benz to form the DaimlerChrysler AG company.

The Chrysler history is one in which innovation holds the key for long-term success. The passion for upgrading, refining, and looking for ways to improve Chrysler parts and Chrysler as a whole is what the company is all about. Chrysler parts like the air filter, transmission modulator, torque converter, and brake systems all contribute to make Chrysler what it is today. A car, after all, is a sum of its parts.

By Catherine Covarubias.

DaimlerChrysler Selling Chrysler AG at a Bargain Price

Investors that are planning to purchase Chrysler are advised to become a marketing savvy and to prepare $7 billion as payment. It is true that the Chrysler deal looks better on paper due to the bargain that the buyer is getting.

The price tag of the Chrysler Group range from $5 billion to $7 billion which is rather far from the $36 billion valuation of the original merger---and just like what most analysts observed with the present price that DCX is selling Chrysler it is more of trying to pay its buyer so that it can once and for all get rid of its loss-making American arm without considering making a profit.

The new owner would also have to market its way out of one of the great automaker inventory gluts of all time comprising of surplus of steel that pushed Chrysler to the brink last year. Plus there are also other issues that new buyer would have to deal with like branding and positioning issues.

Chrysler---American arm of Daimler and manufacturer of top-of-the-line Jeep rims--- has not been able to clearly define and differentiate its brand trio something that experts question at last week’s New York Auto Show. They said that Chrysler has failed to do this. Vic Doolan, non-executive chairman of consultant Courland Automotive Practice said that the carmaker was overlapping Dodge, Chrysler, and Jeep models that instead of them competing with other brands ended up competing with each other instead. Doolan also recommends for the automaker to build its global presence to reach fats-growing emerging markets such as China.

John Morel, director-product and market planning at American Suzuki Motors Corp. has also given Chrysler some advice. He said that before spending a great deal on marketing Chrysler needs to differentiate its brands since the company has too many similar products such as Dodge Durango and Chrysler Aspen.

Mr. Morel has observed that Chrysler has stretched its Jeep brand too far saying that the Commander is already hurting the sales of the Grand Cherokee while the Jeep Compass is competing with the Dodge Caliber which is not good.

Auto consultant Gordon Wangers has also given his own observation saying that Jeep’s crown jewel, the Grand Cherokee is being ignored by Chrysler. He also pointed out that the Dodge Ram needs also to be redone so it can effectively compete again as a key player in the full-size-pickup segment. The last time that the model has gotten a makeover was in the year 2001. And at present it is considered to be the oldest in Detroit.

Last week at DaimlerChrysler’s annual meeting, Chairman Dieter Zetsche has confirmed the company’s worst-kept secret: the automaker is in discussion with undisclosed parties to sell Chrysler.

From the time that Chairman Zetsche has announced that Chrysler is for sale reports on its possible buyers have been flooding the net and just recently the number of contenders have lowered down to two New York financial outfits namely the Blackstone Group and the private-equity firm Cerberus Capital Management, and the Canadian auto supplier Magna International Corporation. And just last week Kirk Kerkorian has also offered a $4.5 billion bid for Chrysler.

By Lisa Ziegler.