Meet the Press: Chrysler President speaks to automaker?s future[SIZE=-1]
With the company having received $3 billion in federal loans, Chrysler has a deadline to present a long-term viability plan before it is eligible for another $4 billion the company says it needs to see it through the credit crunch, when, according to Press, the company expects customers will start buying its cars again.
Last weekend, the company announced it would team up with Fiat to get some of the European company?s small cars in the pipeline quickly. (While we were full of questions on the Fiat deal, Press was slim on answers, saying the deal was not yet finalized, so he couldn?t divulge the details. According to a report in Automotive News, the company is likely to bring over several Fiat products, including the tiny 500, some Alfa Romeo models, and a replacement for Chrysler?s unpopular midsized Sebring sedan.)
Still, in automotive development cycles, ?quickly? will take at least two years, Press says. Until then, Chrysler also has a deal with Nissan to sell a version of that company?s comfortable, small Versa. This model will give Chrysler an essential affordable, reasonably fuel-efficient model to address market demands and help the automaker meet increasingly stricter fuel economy regulations. But even that badge-engineered model is not expected for about another year.
The $3 billion, received December 29th was expected to keep the company afloat through March. That?s $1 billion a month. That leaves Chrysler $4 billion in government (read: your) money, plus revenue from its current lineup of cars and trucks to carry the company from April through until it becomes profitable again, Press says. He didn?t specify how long that would take.
Press says Chrysler should get the money, because it wants to ?carry on the company?s rich heritage of design and quality manufacturing.? Not to mention, keep 54,000 Americans employed.
Consumer Reports data shows most of the company?s current cars rank toward or at at the bottom of their respective classes, and overall have the among worst reliability record in the industry. Not one Chrysler, Dodge, or Jeep product is recommended. (See our ?Detroit Report Card? for our takes on the Detroit 3 automakers.)
What do you think? Now that it has a new partner in Fiat, is Chrysler viable for the long term? Let us know in the comments below.
?Eric Evarts
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