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Tue 12/7/2010
Chrysler: Italians Succeed where Germans Failed 

The skepticism in the halls of Chrysler ran thicker than pesto, when in November 2009, Fiat and Chrysler CEO Sergio Marchionne stood before hundreds of skeptics and tried to convince the crowd that Fiat would succeed with Chrysler where German automaker Mercedes-Benz had failed in its ten-year ownership of the company.


The New Chrysler: For Real. For Now
AOL Autos;  David Kelly; December 05, 2010

In November 2009, Fiat and Chrysler CEO Sergio Marchionne stood before hundreds of journalists, analysts and suppliers at the automaker's Auburn Hills, Michigan, headquarters, and tried to convince the crowd that the Italian automaker would succeed with Chrysler where German automaker Mercedes-Benz had failed in its ten-year ownership of the company.

The skepticism in the halls of Chrysler ran thicker than the pesto that had been flown in by Marchionne for the event, along with the breads, meats, coffee, biscotti, espresso and mineral water. Indeed, the fete was flown in from Italy as local Michigan purveyors proved not to be up to the Italian CEO's standards. Needless to say, there wasn't a can of Vernors or a bottle of Faygo pop to be seen anywhere. Images of future products flashed on the screen via PowerPoint. A Fiat Cinquecento (500) was on hand to help show what Fiat was bringing to the table. Yet, the whole thing was undermined by an ad for the Dodge Ram, an odd, "who-thought-this-was-a-good-idea" piece featuring a Zen-like pronouncement (to pickup truck buyers?) that "I am Ram. My Tank is Full." Is there a way to say ?oy vey? in Italian?

It became known in the press core as the "Chrysler Death March," a ten-hour affair that crushed the spirits and attention spans of even the most dedicated Mopar and Jeep enthusiasts. What was Marchionne thinking? That was the refrain for months as Chrysler went dark after the event, shutting down press inquiries about even the most mundane story lines, rationing interviews with executives like driblets of water in the reportorial Sahara.

Now, we can say that the year of living quietly was all about keeping Chysler's powder dry. "It is best to talk when you really have something to say," says Olivier Francois, the chief marketing executive for both Chrysler and Fiat, as well as being the CEO, with profit-and-loss responsibility for the Chrysler and Lancia brands.

Product Solves Problems

Chrysler does have a few things to talk about. Finally. Much of it is even good. If disgruntled taxpayers could drive the new Chryslers for a weekend, I suspect at least some of them might come to think saving the U.S.-based auto industry was worth betting at least as much as a month of warfare in Afghanistan.

Having driven all of Chrysler's new products now, I can posit that this U.S. Government/UAW/Italian-automaker owned automaker is for real again despite the hoary ownership structure. Some of the new product is the tail end of the best part of Daimler's ownership. Some of it was improved starting under Cerberus Capital Management's ownership in 2007-2008. And some was improved starting with Fiat's ownership in the summer of 2009. The stuff that will come from a clean sheet of paper, combining Fiat platforms and Chrysler's engines and designs, is still two years away. But the Italians have succeeded where the Germans failed. Chrysler can stop being embarrassed about its showroom offerings, bear down and take its Milan-Michigan showroom to the next level.....

Getting Past The Skepticism

When Fiat negotiated with The White House Auto Industry Task Force to take control of Chrysler when it emerged from bankruptcy, part of the skepticism about Marchionne's commitment stemmed from the fact that he was putting none of Fiat's money into the deal. Rather than put any of Fiat's finite cash reserves on the line, he was instead committing to share billions in Fiat's engine and engineering technology right down to vehicle platforms.

Marchionne, addressing his critics in his customary rumpled sweater ensemble, didn't seem, at the time, much better than Cerberus Capital Management LLC, the private equity firm that had bought Chrysler from Daimler and starved it of resources while it cut costs.

If the Fiat plan to restore Chrysler to viability and prosperity doesn't work, Marchionne has little but time and travel invested. He and the Italian posse he installed can be on the next plane to Milan, and leave the White House and employees holding the bag.

The people at Chrysler -- the engineers, designers, product planners, and workers of all stripes -- were never the main problem. They labored under Germans who didn't really get them. Then, they labored under a private equity firm who didn't really understand them. It is worth pointing out that Fiat management went through the place with a hot knife, culling out people who were either too entrenched in "old-think," or weren't willing to read the new memos about the new ways.

It's hard to blame Fiat for that, as Fiat has been trying to do the equivalent of rebuild a house before the fires were all out. People have been working seven days a week for a year to make it work, and to bring back the company so that it can be a source of jobs, and hopefully pride, for another generation.

The commitment and work show. It's not all there yet. But the long, ugly march through the barren, joyless wilderness of Dodge Calibers, Chrysler Crossfires, lame engines, bankruptcy and jobs banks is behind us.

The good people at Chrysler who were always there have been unleashed to make great vehicles again, like a new generation of cooks unleashed with better ingredients and the mandate to wow the customers that just wasn't there under the previous German owners, or the bankers who moved in for a while. The next big battle is to move the needle on Consumer Reports recommendations and J.D. Power's quality ratings so that skeptical consumers, and not just car geeks will bite......

http://autos.aol.com/article/the-new-chrysler/
 
 

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