Tom Byrne wrote:
> Bob Eaton should rot, not for selling Chrysler to Daimler, but for
> squandering profits Chrysler was making since the LH cars came on line.
> During the early years of the LH, Neon, Gen II Dak and Ram, Chrysler was
> profitable and was the most efficient manufacturer bringing a vehicle from
> drawing board to showroom. However, Chrysler took the profits, gave
> management raises and agreed (along with GM and Ford) agreed to crazy
> generous UAW contracts. By the 1998, Chrysler needed a cash infusion as it
> had no R&D bucks left in the kitty.
>
> Pressure from mega shareholder Kirk Kerkorian caused Chrysler management to
> make a deal with Daimler. It was a deal with the Devil, bit it was Eaton and
> his pals who ran Chrysler onto the rocks.
>
> Jurgen Schrempf finished the job. He tried to make Chrysler European. He had
> visions of $35,000, leather-appointed Caravans. Dieter Zetsche actually did
> a good job of righting the ship, but the damage had been done.
>
> I had a ringside seat to the financial side of this. Chrysler would have
> filed for Ch XI by 2000 or 2001 if not for a partner. Daimler was a bad
> choice, but the only one who would put forth the cash at the time. Kirk
> eventually sued DCX / Schrempf for misrepresenting the "merger of equals".
>
> If Chrysler would have stayed the course of being the U.S. small car leader,
> it would have been in good shape for today's fuel prices, but it git truck
> and SUV fever. It will be a miracle if Chrysler remains independent. Look
> for Nissan / Renault to by Chrysler within a year, keep Jeep and, possibly,
> Dodge trucks and that is it. New small cars are already using
> Nissan-designed engines, which are actuall inferior to the 2.0 / 2.4 used in
> Neons.
>
Well I knew it was Eaton who shafted the company...putting Chrysler in
that bad position. I suppose looking at it from a perspective of "sell
to Daimler now or go bankrupt soon" - it was the only choice... but Bob
Lutz should have gotten the CEO slot after Iaccoca stepped down.. Lutz
would still be at the helm and we might not have this mess we have now.
Lutz has been doing pretty good over at GM.
Oh well...
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