Higher fuel prices and stricter emissions and fuel economy standards are no doubt changing the landscape of the auto industry, but perhaps no automaker will be as greatly altered as Chrysler . Thanks to private ownership, the Michigan-based automaker plans to scale down its operations and rely more heavily on joint ventures.
Although Chrysler CEO Bob Nardelli admits the automaker has “a long way to go,” Chrysler is on the road to recovery. However, once Chrysler completes its North American turnaround, the company will have a very different look.
The first step will see Chrysler consolidating its operations to the point where it is no longer one of the world’s six-biggest automakers. Instead of launching several new models every year to boost sales, Chrysler will slow its production launches and focus on making existing and future products better.
To fill out its lineup, Chrysler will rely on partnerships with other automakers — such as the recently inked deal with Nissan for a new small car. But despite being made by other companies, Chrysler vice president Jim Press says that the vehicles will be injected with plenty of “Chrysler DNA.”
On the other side of that coin, Chrysler will continue to look to other automakers to maximize its production capacity. Chrysler will soon begin producing a minivan for Volkswagen and a Nissan version of the Dodge Ram is slated to roll off the assembly line floor in 2011.
Chrysler is looking for the same kind of joint ventures in its parts production operations. The automaker is currently looking for a partner for its axle making operations and already sells engines to manufacturers in China and Russia, according to The Detroit News.
Chrysler will also continue to outsource the development of new technologies. “Why would we spend hundreds and hundreds of millions on (research and development), when we could buy it?” Chrysler vice president Tom LaSorda asked rhetorically.
Nardelli credits the ability to make such strategic alliances — and so quickly — to Chrysler’s private ownership.
