What Chrysler Should Have Done (But Didn't)

An article in the New York Times today noted the Chrysler Group's recent troubles, and how the once independent automaker is struggling to stay relevant in the midst of changing automotive tastes (more towards small cars, less towards SUV's) and difficult relations with its German parent DaimlerChrysler AG in Stuttgart.

Many of Chrysler's problems date back to the eighties, when then-chairman Lee Iaccoca got the automaker out of bankruptcy only to fail to reform the bureaucracy adequately. One thing I always faulted Iaccoca for was his reliance on cars with minimal, crude engineering; the company developed a single basic front-wheel-drive platform and based everything from family sedans to sports cars on it.

I could have met Mr. Iaccoca. One of his best friends was sculptor Jay Dugan, who happened to be my great-uncle. If my great-uncle Jay had introduced me to the man once considered a possible presidential candidate, I might have offered Mr. Iaccoca the following suggestions for how to develop Chrysler product:

Develop new rear-wheel-drive platforms for big sedans and sports coupes, which would provide the necessary maximum handling and performance capabilities for such vehicles.

Make Dodges and Plymouths distinct from each other. Too often, the only thing that differentiated a Dodge and a Plymouth in the same class was a radiator grille. Even the brand logos were the same corporate pentastar.

Develop different platforms rather than use the same one for everything.

Develop the Imperial for "traditional" luxury car buyers but make the Chrysler brand more of a European-style luxury marque, rather than sell that dumb LeBaron sedan (a K-car with bells and whistles). I know Mr. Iaccoca is of the World War II generation, and folks of his ilk thought they were classy for driving cars with vinyl roofs and fake wire wheels, but there was no way that old Detroit baroque style was going to cut it with younger generations (except Generation Xers who appreciated the ironic subtext of rich Corinthian leather).

Develop more engines, especially multiple-valve engines as the Germans and the Japanese were doing. Chrysler relied primarily on one domestic engine throughout the eighties, sometimes with a turbocharger from an outside supplier, along with Mitsubishi- and Volkswagen-made powerplants as options. The 318 V-8 that powered larger cars was antiquated.

I also would have advised him not to enter a collaboration with Maserati. That was a disaster.

In other words, I would have advised Mr. Iaccoca to simply come out with better, more diverse product.

So what would have happened if Mr. Iaccoca had listened to me? Gee, I don't know. Maybe Chrysler would still be an independent company, and a robust one.

Minivans? No, I would have told him the minivans were fine, even if the Plymouth Voyager was only the Dodge Caravan with a different name.