"Detroit Disease" Inflicts Chrysler

Chrysler was once admired for its toughness even at a point where the atmosphere is attracting slumping sales and massive losses. Nonetheless, according to some analysts, it seems that Chrysler has lost its protective cloak and eventually been inflicted with the so-called 'Detroit disease'.

Automotive reports are showing that Chrysler will lose $1.5 billion in the third quarter, about more than twice what it had expected beforehand. This loss is brought about by the slow sales of gas-guzzling trucks and SUVs.

According to Tom Appel, editor of Consumer Guide Automotive, "The company has been hit especially hard by the public’s growing desire for smaller, fuel-efficient cars. But the issue may be more one of a perception than a reality."

“I think Chrysler’s being hurt by a general impression that its large and hitherto well-received cars like the Chrysler 300 and the Charger are not very fuel-efficient, and so there’s a bit of a backlash,” Appel added.

Chrysler President and CEO Tom LaSorda said that the company intends to become more competitive internationally with a portfolio of smaller cars. “We’re addressing those issues and moving our product portfolio to a mix that’s more in line with the recent realities and market trends,” LaSorda elaborated.

"But while new products are important, Chrysler, like Ford and GM, needs to do a better job of managing its car and truck inventories with flexible manufacturing processes like those used by Asian manufacturers," said Kevin Reale, research director for AMR Research.

Analysts are also saying that Chrysler lineup has other problems. One problem is its limited offer in the midsize SUV market. On one hand, the sales of Dodge Durango have dropped off abruptly. To circumvent the decline in sales, the automaker is modifying the Chrysler auto parts to set forth a striking lineup.

New Chrysler products that will be launched this year include Sebring sedan, Jeep Compass, Jeep Patriot and compact Dodge Caliber. “Dodge is about to launch the mid-size Nitro SUV, so that will help them in the fuel economy perception area, but when it comes to minivans someone has to come up with something new,” Appel added. “The expectation is that the new Dodge Caravan and Chrysler Town & Country minivans will be that new thing, but their release is still some time away — they’re not supposed to come out until mid-2008.”

By Sarah McBride.

Chrysler Vehicles to be Equipped with Backseat TV

Innovations in the auto industry continuously pour in year in and year out. The race among auto makers to provide their consumers with the best features has led to the development of advanced vehicle features.

Partnering with other industries, car makers are able to provide their customers with the latest in auto convenience and comfort. Chrysler is one car maker to join the force with another company so as to provide promising features for their vehicles.

The member of the Big Three recently announced that they have formed a partnership with the SIRIUS Satellite Radio to equip the 2008 model year Chrysler Group vehicles with SIRIUS’ Backseat TV™.

The Backseat TV™ is an innovative and cutting edge television technology which delivers TV signals directly to cars on or off the road. The TV service provides family TV for backseat occupants which are mostly occupied by kids. Backseat TV™ allows owners of selected Chrysler models to gain access to three family entertainment channels.

The initial lineup of TV programming that SIRIUS offer consists of Nickelodeon, Disney Channel, and Cartoon Network. These programmings are aimed for children, who more often than not, will occupy the backseat of a vehicle. Chrysler will equip select 2008 model year vehicles with the feature and the list of vehicles does include the 2008 Chrysler Town & Country, Dodge Grand Caravan, Chrysler 300, Dodge Charger, Dodge Magnum, Jeep Commander, and the Jeep Grand Cherokee.

Frank Klegon, the Executive Vice President for Product Development at Chrysler group, has this to say at the announcement of the partnership: “Chrysler Group is committed to offering innovative technologies that are right for our customers. SIRIUS Backseat TV makes its world debut in Chrysler Group's all-new 2008 minivans and marks the third SIRIUS service - - along with SIRIUS radio and SIRIUS real-time traffic -- available to Chrysler Group customers.”

For the SIRIUS Satellite Radio, Mel Karmazin, the Chief Executive Officer, has this to say: “SIRIUS is dedicated to bringing Chrysler Group customers the best in-vehicle entertainment available anywhere, whether it is through radio or video. SIRIUS Backseat TV, with its best-in-class programming from our partners -- Nickelodeon, Disney Channel and Cartoon Network -- further enhances the already exceptional driving experience for Chrysler Group customers. In SIRIUS' first venture in visual entertainment, I am pleased to have the three most original family-centered programming providers in TV. Just as we provide the Best Radio on Radio, this allows us to launch SIRIUS Backseat TV as the Best TV in the Backseat.”

This technology is just starting its career in the auto industry. With the expected success of the technology, it is just a matter of time before features such as the Backseat TV™ become standard feature for many vehicle models.

By Anthony Fontanelle.