Chrysler worse off than previously thought

2009 Dodge Challenger 3

I’m not sure I’m buying this. The article cited here goes on to speculate that Sergio Marchionne is setting things up to make more drastic changes.

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.

The only new product Chrysler has entering the market this year is an industrial-duty version of the Ram truck. After that, a new version of the Jeep Grand Cherokee mid-sized SUV isn’t expected until the middle of next year.

The economy is very important. If car sales can continue to rebound, then the margin for error is greater for Fiat.

  

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