"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.

All-New 2008 Dodge Grand Caravan, Chrysler Town & Country Minivans Debut at the 2007 Detroit Show

The all-new 2008 Dodge and Chrysler minivans have once again proven that they have what it takes to be the best vehicles to move people and cargo. The thirty-five new and improved features make the 2008 Dodge Grand Caravan and Chrysler Town & Country not only practical but have all the right ingredients that would ensure 100% driving and riding satisfaction.

According to George Murphy, Senior Vice President - Marketing, Chrysler Group, "The all-new 2008 Chrysler Town & Country and Dodge Grand Caravan spice up the minivan recipe by offering an all-new contemporary appearance, five different models, three distinct seating and storage systems, unmatched entertainment systems and the safety you expect and deserve. Add in three powertrain options, clever interior features and industry-leading functionality and you have a recipe that will be a favorite with any family."

The 2008 Dodge and Chrysler Minivans have so much to offer. Aside from the high quality Dodge parts that they are equipped with, they also have the all-new Swivel ‘n Go™ seating system that allows a 180 degrees swiveling of seats—perfect for passengers seated at the back particularly the second row that may want to face third row.

The all-new Swivel n’ Go includes a removable table, covered storage bins in the floor of the second row, uncover storage for the third row and a fold-in-the-floor third row extra seat. It also provides an industry-first integrated child booster seat in the second row and a minivan exclusive one-touch power folding third row 60/40 bench seat.

Safety is an integral part of the 2008 Dodge and Chrysler minivans. They are equipped with all-row supplemental side-curtain air bags, Electronics Stability Program (ESP) complete with traction control and brake assist, LATCH child seat anchor system and a patented, energy-absorbing steering column are among the standard safety features. And that’s not all! The 2008 Dodge and Chrysler minivans also include Innovations like an industry-first integrated child booster seat, ParkView(TM) rear back-up camera, a rearview interior conversation mirror, integrated child safety seat and ParkSense(R) rear back-up system also ensure peace of mind while traveling.

The 2008 Dodge Grand Caravan and Chrysler Town & Country minivans are to be manufactured at two of DaimlerChrysler big plants: the Windsor Assembly Plant in Windsor, Ontario Canada and the St. Louis South Assembly Plant in Fenton, Missouri. The 2008 Dodge Grand Caravan and Chrysler Town & Country minivans are expected in US dealerships by fall of 2007.

By Correy Putton.