When a business comes under new management, it is not surprising that the things the last owner viewed as sacred is not looked upon the same by the new owner. So it is Chrysler's turn to prove that this old adage is still correct.
Chrysler lost $2 billion in the first quarter of this year, with figures showing that its sales has dropped three percent through April compared to last year. While Chrysler, which now has 3,700 dealerships, plans to cut that number, plans to eliminate its models are underway as well.
Pundits expect that Chrysler, nudged by new top dog Cerberus, will lead to the elimination of many models. Identified as possible targets include the Dodge Durango and Chrysler Pacifica SUVs. Only the icons (the Dodge Viper is safe. For now), or the tried and proven (Chrysler 300) are safe while the rest of the line will be tested and reviewed by Cerebus.
Chrysler CEO Tom LaSorda has been quoted as saying that the company will define and develop three distinct brands.
Our take? We're not surprised and feel the decision is a good start. If Cerberus needs a few suggestions on what other models to cut (i.e., Chrysler Aspen, Jeep Compass), send us an e-mail.
However, we can't wait to also see what's coming down the pipeline. Well, except maybe the Imperial.
via BrandWeek