Fiat CEO: Chrysler worse than we thought

NEW YORK (CNNMoney.com) -- The situation at recently rescued Chrysler Group is even more dire than first thought, the CEO of Italy's Fiat -- which came to the aid of the U.S. automaker -- said Wednesday.

"We were surprised by how little had been done in the past 24 months," Sergio Marchionne told reporters in Frankfurt, Germany.

Chrysler will present a revised business plan in November, Marchionne told reporters.

"We have to be absolutely clear about what we want to do with Chrysler and, as a management team, where the organization is going to be in five years," Marchionne said, according to the industry newspaper Automotive News.

Unlike General Motors, which has continued to roll out new and redesigned products even as it entered and exited bankruptcy, Chrysler has had little to tout. Its most recent new market entries are the Dodge Challenger muscle car -- essentially a re-bodied Dodge Charger sedan -- and the Ram pick-up.


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sdcarguy - 9/16/2009 4:40:25 PM

+5 Boost

I'm shocked, shocked to find that gambling is going on in here!
-Captain Renault, Casablanca

SteedPub - 9/16/2009 6:22:46 PM

+5 Boost

Um........

If Fiat is just not figuring this out..........

They didn't do their due dillegence very well. Anyone standing in the Chrysler booth at last year's LA Auto Show knew the company was fatally jacked up. The lighting in the booth was even dark and dank.

There is no question Chrysler needs all new cars NOW. But that is literally impossible. It will be 2-3 years before Fiat can get new metal on the showroom.s

In the interim Chrysler needs to start offering the diesels they build RIGHT NOW in EVERY PLATFORM they have for export markets. They are already engineered, already proven and already on the assembly line here in North America. They have a diesel Dodge Caliber, Jeep Wrangler, Chrysler 300 rolling off the lines NOW. Just sell them here.

If they did this one thing, it would get enough new customers through the doors to tide them over until fresh metal arrives.

pushrod27 - 9/16/2009 9:04:17 PM

+6 Boost

do you really think so? I don't think American demand for diesels is that great at this point.

pushrod27 - 9/16/2009 9:05:00 PM

+2 Boost

... and just so you know, that was a real question, not trying to slam you post or be a wise-ass. this time.

SteedPub - 9/17/2009 2:20:19 PM

+1 Boost

There is a good market for diesels, despite what many think. VW, Audi, and Mercedes sell every one of them they can get. No rebates, no discounts, and you more often than no have to wait.

Do Americans want cars that get better mileage? Yep.

Diesels are already an engineered part of Chrysler's North American product portfolio. It is an easy fix to get new feet in the showroom to buy cars that wont have to be sold at a loss.

MSP6 - 9/16/2009 10:45:18 PM

+1 Boost

The above comment is exactly what Chrysler/Fiat should NOT be doing.

"Bring back the Magnum" Why ? it was a slow seller.
"Lux uo the punto to compete accents" The accent is not a Luxury car, and the Punto is a much more attractive car anyway.
"Keep the PT cruiser" WHHHATT??? This thing has to go
"Improve Sebring" They need a whole new car, forget about improvements
"Keep the other stuff" What other stuff ? The Avenger, caliber, compass ? they all have to go.

Keep working on the Caravan, Wrangler, Grand Cherokee and the 300 and the Challenger.

For the rest, better pick on Fiat's portfolio.

MSP6 - 9/17/2009 12:57:46 PM

+2 Boost

Invisible, your forgot to mention the inexistent resale value.
If you have no cashdown, very limited revenues and you badly need a car. Then a 5 years lease on a base accent may be the way to go.

Otherwise, if you take overall quality, features and resale value in consideration, this thing is probably the worst value you can get.

MSP6 - 9/17/2009 6:29:56 PM

+2 Boost

Hyndaismoke on the accent : " It will be a Luxury car soon enough buddy."

Yeah right... in Darfour.

wins555 - 9/17/2009 10:56:44 AM

+3 Boost

YOU GET WHAT YOU PAID FOR!

thstone - 9/17/2009 1:35:28 PM

+3 Boost

Fiat is simply laying the groundwork for killing Chrysler. The Chrysler brand is dead. Dodge will become Alfa. All Fiat wanted from this deal was the dealer network and now that they have it, they will start the transformation. In 10 years all of the dealers will be branded Fiat and all of the vehicles (regardless of where they come from) will be branded Fiat or Alfa. The Chrysler name will become a faded memory like Datsun.

Spectator - 9/17/2009 2:05:03 PM

0 Boost

Hell...they can take the Chrysler name if they want it, as long as they stop building Seabrings and start manufacturing Alfa's in the US.

Finally to have the Italians over here to compete with the metallic gray and black Germans.