gavriil

Chrysler to launch 25 vehicles in next 3 years

Reuters / October 01, 2003

BOSTON (Reuters) -- DaimlerChrysler AG's Chrysler group plans to introduce 25 vehicles in the United States in the next three years, dramatically accelerating the pace of debuts, its top executive said Wednesday.

"All told, and I'm saying this in public for the first time here in Boston, the Chrysler group will bring 25 new vehicles to market over the next 36 months," said Dieter Zetsche, Chrysler's CEO.

Speaking at the Boston College Chief Executives' Club, Zetsche said he was optimistic the world's fifth-largest automaker will see better times ahead.

The ambitious plan includes the launch of nine vehicles in 2004, Zetsche said. "That will be the most new vehicles ever launched by any auto manufacturer in the U.S. in a one-year period," he added.

The accelerated pace comes at a time few analysts expect to see an improvement in the cutthroat U.S. auto market this year, and many say Chrysler will be forced to downsize and close assembly plants.

This year, for example, Chrysler will launch a total of only three new vehicles: the Pacifica, the Chrysler Crossfire and the Dodge Durango.

For the 2003 business year, the company expects its U.S. unit to post a slightly positive operating profit. Executives are cautious though, saying economic risks still loom after Chrysler's surprising $1.1 billion second-quarter loss.

Zetsche on Wednesday acknowledged the tough environment, calling it a "jungle."

He said: "I'm certain that we'll have to make any number of short-term adjustments to adapt moving forward, depending on how the environment takes shape."

gavriil

Related article:

Collins & Aikman's Chrysler deals 'under review'
Reuters / October 03, 2003

DETROIT (Reuters) -- Shares of automotive parts supplier Collins & Aikman Corp. tumbled more than 30 percent Friday amid concern its business with key customer Chrysler is in jeopardy.

The Chrysler group put its current and future business with Collins & Aikman, which amounts to about $850 million annually, under review to compare it with rival offerings, an official familiar with the matter told Reuters.

"It would be an accurate assessment to say that (Collins & Aikman's) business is under an internal review," said the official, who declined to be named. "It's not good either way. You never want to be under review."

Each component of Collins & Aikman's annual sales to Chrysler will be compared with rivals on a number of key metrics, including price, quality, delivery and technology, he said.

Collins & Aikman shares fell $1.14, or 30.6 percent, to $2.59 in midday trading on the New York Stock Exchange.

Officials at Collins & Aikman did not return telephone calls from Reuters seeking comment.

"If there are any issues with a particular supplier we will always first work toward reaching a mutually agreeable solution," Chrysler spokesman David Barnas told Reuters. He declined to comment further.

The Detroit Free Press, which first reported the dispute, cited an unnamed Chrysler official in a report Friday who said that Chrysler has already decided to put Collins & Aikman's contracts up for bidding with competitors.

However, the official familiar with the matter told Reuters that the Collins & Aikman contracts may not be put up for rebidding or sourced to other suppliers once a review is finished.

Collins & Aikman, of Troy, Mich., had net sales of $3.9 billion last year. The company is headed by David Stockman, the former budget director in former President Ronald Reagan's administration. In the Free Press, Stockman was quoted as saying the report of Chrysler offering up all of its business to other suppliers is "flat wrong."

gavriil

That was one of the first things that Nissan did before their comeback started. Gohsn put a very tight rope under suppliers' necks. It produced results and still is.

kansaiwalker1

Dramatically accelerating the pace of debuts sounds good when they are starving for new products but this also dramatically raises the chances for glitches during each new vehicle's launch.

Ford took their time to get the new F150 production line up to speed and to catch any glitches before their major F150 rollout and advertising push last month.

Given Chrysler and Mercedes already dubious quality it seems like Zetsche is rolling the dice on this one, but since the Pacifica is a slow seller I guess he has no choice.

Python2121

gavriil

Why is that weird?

einsatz

You got it all wrong... He didn't use the smilie, he used the smilie

gavriil

Oh sorry. What does that smile mean?

einsatz

<table width="500" align=center>
<tr align=center>
<font size=3><b>werd: </b></font> To offer agreement and congratulations on an outstanding proposition or statment.
<BR><b> Example: </b> Damn, fool! I told you he was steppin!, Werd! <BR>
<hr size="1">
</tr>
</table>
http://www.slangsite.com/slang/W.html

Zapata

heard they are already offering rebates

heyitsme

i believe that 2 years from now when were not hearing about recalls from ford.

gavriil

Thanks.

pimpscls

damn thats crazy

DISRUPTV

ouch


i wonder what quality control will be like over the next 3yrs over there

1SICKLEX

Great. 25 new cars that will suck. J/K......

EdgarFanCLS

Did Chrysler set the bar too high for themselves on the Pacifica?

Or just too high of a price?

Had I not read this I would have thought the Pacifica sales were actually doing quite well. As soon as they went I sale I started seeing them all over the place. Maybe it's a regional thing though...

Their new 300-car should be pretty nice if the price is right and they stay fairly true to the concept. Ya gotta love that 5.7L V8.