Why Detroit's Big 3 Car Companies Could Become Big 2

tigers

Lewisburg tigers rule

bob of TN @ Mar 10, 2009 15:28:12 PM

Chrysler & Oblivion

"Chrysler itself is an amalgam of Dodge, acquired in 1928, and American Motors, picked up in 1987."

Not so fast! The company came into being when Walter Chrysler took over the moribund Maxwell-Chalmers car manufacturer in 1924, a firm having a terminal operational breakdown. Chrysler combined three unique talents almost unheard of in a single entrepreneur. In addition to being a skilled manager, he was one of his era's best versions of what we would now call a "corporate turn-around" specialist, AND a experienced, painstaking mechanical engineer. He had been called in by bankers to salvage what he could in a previous automobile concern that had gone into the tank.

He reorganized Maxwell as his own firm and renamed it, reworking the Maxwell into the new car that was his namesake, and this car caught on right away because of its durability and Chrysler's stringent quality standards. Dodge was a later addition, after the Plymouth and DeSoto brands had been spun out of the basic Chrysler platform. It's true that the Chrysler of today is heavily tilted toward the light truck identity fostered through Dodge and the Jeep division, a lucky acquisition via AMC as you noted. But let's not forget that Chrysler was a busy car company for several years before the Dodge Brothers sold out to them.

It is true that Chrysler cannot go on. Its travails are not new. Crippled by stodgy styling in the postwar era, the designers flipped over to the wildly popular "Forward Look" in 1957, only now build quality was the problem. There was also their stupid habit of pitting divisions against each other for the same market share, leading to overlapping lines and the resulting cannibalization. This back and forth was a typical, corrosive characteristic of the company. It has been speculated that this was rooted in the fact that Chrysler, unlike Henry Ford, did not establish a strong, guiding family presence to provide a steady hand running the operation after he had left the scene.

Still, it was once an innovative manufacturer of some of America's best. Yes, this is the end for them. But we will rue the day we allow any more of our auto industry to follow Chrysler into the abyss.

De Rutter Jones of DC @ Dec 30, 2008 18:27:40 PM

The Detroit Three...............Car Makers? or Car Fakers?

It appears that the general public certainly(with some reservation)is in the know regarding what makes a reliable (trouble Free) auto. Being a Former U.S.Marine,also a WWII (era)vetran with no combat (1946 to 1949)I have never had a Japanese Car............but would have liked having a car as GOOD as a Japanese Type. You, Detroit...........have caused me to loose countless tens of thousands of dollars because I had to pay and pay for repairs due to your PLANNED OBSOLESCENT PRACTICES. I do Hope that Washington will place strict constraints on the money you will receive..........to keep you from playing games with the public.

Not necessary of OH @ Dec 08, 2008 18:48:54 PM

Make american cars here. In U.S.A.

First of all, greed and being behind the ball for 30 years, killed r market share! I have a 98 blazer,its just o.k pumped alot of $ into it to keep it going,cant afford a car payment, and why? did we start making the gas hogs again, why? Hemi's n big horse power v-8s,BIG suv,s really stupid that should b as dead as a Led Zepplin reunion world tour.Good friend of mine bought a 84 nissan sentra new 4 around 5k at the time, he gave me the car with over 230,000 miles on it and i did nothing then change the oil, and tires i put almost 50k on it before i put it 2 rest, whats up detroit? why r some american brands made outside u.s ummm? GREED! sorry am buying a Honda,next time around. U guys blew it & ran, the big greed 3 into the ground , a doller salery is a joke , u guys got rich right!!Do your selfs a favor did what the japs did start small, who would ever think that a KIA is a world class car HMM..Think about it i give up..GREED! OVER PAID BAD CONTRACTS & UAW what a joke! toyota blew u guys away, there non union..oh well 2 BAD!!!

wont buy american again, because u use mexico big profits GREED! of NJ @ Dec 08, 2008 01:32:35 AM

Big 3

Bail them out.

of @ Nov 17, 2008 08:11:22 AM

So long Detroit Three

You don't need a degree in Harvard to figure things out, you might get paid a lot because you went to Harvard but that's a different story. Detroit Three have been building okay cars for years, some better than others but if they don't understand the concept of "crap in, crap out", then sadly they deserve to fail. But wait, the Government is coming in for the rescue, what a surprise, with taxpayers' money. That's right, your hard earned income to bail out a bunch of crap that Detroit created. R&D is not a new concept, why don't the Detroit Three thought about that all these years? Funny that the Japanese and Europeans are always R&Ding and make better, solid cars. Another thing, the UAW of this great nation is killing the Detroit Three, that's right! An average Joe of UAW makes a crazy amount of annual salary with benefits so the UAW workers are milking the Detroit Three for years but little do they know that sooner or later, you are going to milk it dry. Then what? You basically milk your job out and then, no more. If UAW can come to senses and give it up, perhaps there will be some hope left in Detroit but will they? I don't think so as no UAW workers are willing to take a pay cut. No way! So, hit the road UAW as there will be no more Detroit Three for you to milk, how sad! How about Quality, what a concept there too! Japanese and European cars are famous for their quality control, at least for the most part so why can't Detroit give that a try? Some European cars are getting worse, why? Because they were bought out by Detroit Three and right after that, the quality went down. Why? Detroit Three want to save a few bucks, or perhaps mess with the qualty of European cars so the American cars look a little better. I have a Audi and a Saab. The Saab is a perfect example of bad Detroit influence. a 1990 Audi, pure German car with no Detroit influence still runs good, no rust! A 1998 Saab/GM hybrid has all sort of problems with rust. That's right, a 1998 has rust already but a 1990 German Audi has none. Yeah! What a concept. Quality makes a different. Sadly a lot of European cars have Detroit influence in them and that's why the quality of Volvo, Mercedes, Saab, Jaguar and so forth are not as good as they used to be. Global mergers can be a bad thing, I'm just saying. So good luck Detroit Three, you are going to need it. Good luck America as our Government is about to make more huge mistakes with our hard earned money. God bless the taxpayers!

Pat of WI @ Nov 16, 2008 00:04:03 AM

Collector's vehicle

I was interested to note the author's opinion that the Chrysler Sebring is a "mediocre model," and that maybe it is a good time to buy a Sebring after all, as it could become a collector's item. I happen to own a 2000 Chrysler Sebring JXi convertible, which barely has 20,000 miles on it and which is in mint condition. No, I'm not the proverbial little old lady in Pasadena, although the car doesn't get driven even as often as once a week on Sunday. I inherited the vehicle when my first husband passed away six years ago; it was his pride and joy, so HE certainly didn't think it was mediocre! I'm remarried now, and it's our third vehicle; I've thought more than once over the past few years about selling it, but I just don't have the heart to do it. That Sebring is about all I have left of my first husband, it's paid for and costs very little to insure, license and maintain, so I've just kept it for a "fun" car. But now that I've read this article, I think I definitely will hang on to it...maybe someday I'll be able to get a good ROI for it!

Lisa E of FL @ Nov 06, 2008 14:24:43 PM

Goodbye

Let them die.. the unions have crippled them for years, and now they are getting paid back. Here is what you have reaped.. A totally inneffective industry.. Nice Job! Now deal with the consequences.

Joel P of NC @ Nov 05, 2008 23:46:40 PM