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Chrysler veering awayfrom Big Three tradition May 7, 2004 
By Paul Williams

It’s been six years since Chrysler and Germany’s Daimler-Benz formed the partnership we now know as DaimlerChrysler. Whether the multi-billion dollar deal was really a merger of equals or simply a straight purchase of Chrysler by Daimler-Benz is still a matter of debate and litigation, but the current management structure provides some clues.

DaimlerChrysler’s CEO is Jürgen Schrempp. In North America, Chrysler Group’s CEO is Dieter Zetsche, chief operating officer is Wolfgang Bernhard and head of design is Englishman Trevor Creed. Not exactly good ol’ American boys, but they have been very willing to learn American ways; witness a leather-clad Bernhard’s glitzy entrance to the 2003 Detroit Auto Show on a 500-horsepower, Viper-powered Dodge Tomahawk motorcycle, or Zetsche’s Las Vegas-style introduction to the newest Chrysler vehicles at this year’s Detroit event.

Since the partnership was formed, industry watchers and consumers have been interested to know how Chrysler would fit into the new company’s plans. Now, with new vehicles rolling out, the vision is becoming clear.

Although strategic and design leadership for the Chrysler marquee is no longer directly under American control, its new stewards are not throwing out all the established Chrysler past. Instead, they’ve developed a radical future direction for Chrysler informed largely by the lustre of its past. Of course, this is risky, too — how many people know about the magnificent Chrysler Imperials of the early 1930s or the glamorous “Letter” cars of the 1950s? Even the much-hyped and recently revived Hemi engine technology is unknown to many of today’s younger buyers. Nonetheless, the future for Chrysler is to establish itself as a maker of premium cars — not quite a luxury brand like Mercedes Benz, mind you, but not part of the traditional North American Big Three either.

ROLLING OUT THE NEW
To this end, Chrysler is introducing an entirely new stable of vehicles that focuses on style, performance and value. They cost less than you’d expect from premium competitors, but more than you’d typically expect from the Chrysler brand. The question is, will car buyers looking at an Audi, Volvo, Lexus or BMW give Chrysler’s new models a second look? Or, for that matter, will they even consider them at all?

Newly minted DaimlerChrysler Canada president Mark Norman thinks smart buyers will want to consider Chrysler.

“When you look at what we’re offering and the value proposition it represents, buyers will be hard-pressed to ignore Chrysler’s products,” he said. “You’ve not seen anything like this from Chrysler in quite a while.” The first Chrysler salvo across the bow of premium competitors was the 2004 Pacifica “sports tourer.” Lavishly equipped and fully appointed, the plus-sized, Windsor, Ont.-built Pacifica seemed a bold move into a new automotive direction when it was unveiled at the Canadian International Auto Show in the spring of 2003. It was certainly different.

But was it a wagon? A van? An SUV? Chrysler’s advertising at the time wasn’t clear. Consumers were told it shared attributes of each of these vehicle types, and was further distinguished by its performance, technology, luxury, elegance, all-wheel drive, size and security. At an introductory price of $45,995 for the all-wheel drive version, it was also unexpectedly expensive. As one writer pithily observed, “The Pacifica is perhaps the answer to a question
no-one’s really asking.”

While the Pacifica is an innovative response to a range of needs, Chrysler executives now admit they failed to communicate exactly why consumers should want it over an SUV or a minivan, both of which are very popular in Canada.

Sales have been slow both north and south of the border, but the Pacifica may yet catch on. Other manufacturers are introducing similar models; Ford’s Freestyle and Cadillac’s SRX are competitors. Fully equipped, the Pacifica has subtle luxury flourishes and the touch of a creative designer’s hand both inside and out.

Hot on the heels of the Pacifica, and in contrast to that vehicle’s lukewarm reception, the Crossfire sports coupe met almost universal praise for its design and sophisticated (Mercedes-derived) power train. Obviously, a sports coupe is not going to be a volume seller, but as Norman said, “The intent was to show what Chrysler could do; what kind of vehicle you’re now buying when you select this brand.”

Drawing heavily on the art deco themes evident in the iconic Chrysler Building in New York City, the $47,745 Crossfire is not ostentatious, but certainly not for the faint-of-ego. The car makes a bold statement and offers an interesting alternative to the more obvious choices from BMW and Audi.

Niche vehicles aside, there’s no denying that what Chrysler needs is a home run, so enter the designated hitter, the $42,995 300C.

Like the Pacifica, the 300C is a Canadian-built vehicle, coming out of Brampton, Ont., but unlike the Pacifica this vehicle is much easier to understand.

It’s a big American sedan. Built on a rear-drive platform like most premium vehicles, this car really does harken back to the elegant Chryslers of the ’50s, complete with a 345-h.p. Hemi-V8 engine, massive grille, chrome accents and a formidable street presence. However, the 300C isn’t your rear-drive leviathan of old. The V8 engine uses cylinder deactivation technology that allows the car to cruise on four cylinders in low-load situations.

This reduces fuel consumption by up to 20 per cent, and similarly reduces emissions.

Furthermore, all 300 sedans in Canada, even the less-expensive 250-h.p. V6 Touring and Limited models, come standard with an array of chassis stability technologies, mostly derived from Mercedes-Benz. These include electronic stability control, all-speed traction control, anti-lock brakes, electronic brake force distribution and emergency brake assist.

Ron Smith, DaimlerChrysler Canada’s vice-president of marketing, said the company is very concerned about getting the price right for the these cars. “We’ve worked hard to get the most content at a very aggressive price point here in Canada,” he said. “We think people will be very surprised by what they can get for their money.”

Included in the 300C’s specification are the signature V8 engine, thick carpets, premium leather interior, faux tortoise-shell interior accents, 18-inch chromed alloy wheels, Mercedes-inspired rear suspension, jewelled projector-beam headlamps, an up-rated sound system and most other amenities expected in a premium car. A navigation system is optional. As if to add an exclamation point, Chrysler executives introduced a super-car prototype called the ME Four-Twelve at this year’s Detroit auto show. This V-12, 850-h.p., carbon fibre-bodied car rockets from zero to 100km/h in 2.9 seconds, and shows off a futuristic design and sophisticated technology, some of which is also Mercedes-Benz sourced. Production is rumoured to begin later this year.

PREMIUM BUYS
Although parent DaimlerChrysler assiduously maintains a separation between Mercedes-Benz and Chrysler, questions concerning common technology between the two brands persist, and are typically the first asked by auto writers at Chrysler press introductions. While potential Chrysler owners might like the association with the German automaker, the fear is that potential Mercedes owners may not. The fact is, Chrysler is benefiting considerably by the technical expertise and componentry available from its German sibling, and from the Chrysler consumer’s point of view, that can’t hurt. Whether these vehicles will strike a chord with premium car buyers remains to be seen. Chrysler executives point out that they’re not finished yet, as they expect to replace every vehicle in the model line-up over the next two years. However, in an era when many cars are beginning to look like products of the same mould, Chrysler is now producing cars that offer interesting alternatives.

Web ride DaimlerChrysler Canada
www.daimlerchrysler.ca
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