Chrysler To Introduce 9 New Vehicles in 2004.

[skylight]

December 16, 2003


On a brisk autumn morning in Auburn Hills, MI, the leaves on the maple trees surrounding Chrysler Group headquarters are changing color, signaling the end of summer. It's a bittersweet time for many in Michigan.

Chrysler Group President and CEO Dieter Zetsche sees it as the end of another trying season and the beginning of a new one filled with hope and promise.

After all, his company is about to embark on one of the biggest new product blitzes in its recent history. Chrysler plans to introduce 25 new vehicles within the next 36 months; with nine coming in 2004 alone.

The breadth of new products stretches across various segments, to include the Chrysler PT Cruiser convertible; revised Town & Country and Dodge Caravan; the Crossfire roadster and SRT-6 performance version; the 300C sedan and Touring wagon; Dodge Magnum cross/utility vehicle; new Dakota pickup and Jeep Grand Cherokee and a stretched Wrangler. These products will join the recently launched Dodge Durango SUV and the Dodge Ram SRT-10 performance pickup, which will hit the market late in the year.



Zetsche and his team have taken a beating in 2003. While the third and final year of Chrysler's restructuring was supposed to be a time of promise, the auto maker hit several potholes, including the disappointing launch of the Chrysler Pacifica and a relentlessly competitive marketplace demanding ever-bigger incentives.


"It's safe to say that during the first two years of the turnaround, we were very successful on the cost side, meeting and beating all of the targets we set for ourselves. At the same time...the objectives we set for ourselves on the revenue side were not met entirely," Zetsche says in an interview.



The bottom fell out during the second quarter, when Chrysler tried to wean itself off incentives and saw its sales tumble. The auto maker posted a $1.1 billion loss during the quarter, derailing the plan's expected $2 billion profit for this year.


Zetsche says Chrysler had few new products to offer in 2003, which put the company at a disadvantage. It was forced to ratchet up its cost-cutting efforts to help offset the decline in revenues. While the auto maker was able to save an additional $1 billion over its original $2 billion estimate, it still wasn't enough.




Shortly after the second-quarter results hit Wall Street, Zetsche and his team found themselves under more intense pressure to quickly right the ship. Headlines popped up throughout the financial and Detroit press predicting Chrysler's demise.

Zetsche says the negative press began to take its toll on the team at Chrysler, some of whom had been through this same scenario many times before.

"I clearly acknowledge that parts of those articles are not helpful for us and that, of course, we are facing morale issues," he says.


"No doubt, you are better off when your people are excited and in high spirits with great morale. When you are going through tough times and when your people are confronted with either reports or speculations in the media about your situation and potential future, you have the chance to still energize your people. This team has been able to overcome significant problems in the past," he says.




Despite the problems, Zetsche says there's no need to extend Chrysler's turnaround plan beyond the 3-year timeframe. The product plan is moving forward at a brisk pace, which should help boost the bottom line, he contends.


"The price pressure is mainly affecting the carryover products. The objective with the new products is to pull customers into your showrooms based on the strength of the new products and not the 'deal-of-the-week,'" he says.


That doesn't mean Chrysler will bail out of the incentive game. In fac

[IRPT]

Those are all great looking autos, the 2nd one down made me wonder what a PT Cruiser would look like with a chopped top. Anyone seen one?

[Cokebear1]

I've never seen a chopped PT, but I've always thought it would be a cool idea. I'm surprised someone hasn't done it by now.

[2sb]

With so many new products, we'll soon see if there's any "C" left in DC.

[quicksilverdon]

Sorry, none of those 6 for me.

[KingKole02]

"Chrysler is working with its alliance partners, including Mitsubishi Motors Corp., to develop a new family of small and midsize cars, to replace the Chrysler Sebring, Dodge Stratus and Neon. Those cars are expected to debut in 2005, along with siblings from Mitsubishi."
One this subject, think most of us PT owners look at these cars too and replace them with our buying of the PT. Personaly I like the PT size better than the Neon, no offensive to the Sebring but it is a piece of s*$&, every owner of one has had a major problem that I talked to 3 of which had the same problem, all different years too, and finally the Stratus, I didn't pick this one just because I liked the PT better. Don't get me wrong the Stratus has nice lines just not the style of a retro looking car I wanted.

I think the new Dodge Magnum wagon is one serious car. I have read in the Road&track and CarandDrive mags. that this is one heck of a power house, with like 300+ horse. I missed where it talked about the power in this article, I skimmed to see the pics. That cost near 35 with a nice package. I will be looking into the future for some test drives from the dealer for sure.

[bobs turbo pt]

second car is awesome looking !!

[PT-ERA]

I think the second car down is the Dodge Magnum. Looks pretty wild.

[Giftedone]

I was kinda bored ( I love photoshop). This is what a chop top could look like...maybe?



Peace
Rob

[IRPT]

Now that's what I want! Rob, great job, that really looks good. [^]