The people at the top of Chrysler are more clever than some
car company pundits may have given them credit for being. Bob
Nardelli may actually be the best thing that’s happened to the
company in quite some time.
Let’s put aside the whole notion about how Chrysler is a
“cherished American icon.” The Liberty Bell is a cherished
American icon. The Statue of Liberty. The Gilbert Stuart
portrait of George Washington. But not Chrysler, new, old,
whatever. Walter P. Chrysler’s toolbox is fairly iconic for
those who are familiar with it. But Chrysler Corp. is not. The
Chrysler Building in New York, yes. Chrysler, no.
Let’s face it: Chrysler is a company that designs, engineers
and builds stuff. Stuff with wheels. Some of those products are
certainly revered by automotive enthusiasts. Some of those
products are used by people to commute every day. Some of those
products are the stuff of legend. Most of those products are the
stuff of transportation.
Let’s not get all patriotic about it. (I had a grandfather
who spent his entire career working there, so I am not being
cavalierly dismissive here, but I’m not going to get misty eyed
about the company.) Chrysler is a company that has done good
work and continues to do so. Full stop.
Chrysler is a company that is in business to do one thing:
Make money. That’s the first rule in the auto business. The
second is: “See rule #1.” Period.
Chrysler has long been known for its chops in design.
Somehow, these chops have been rather rare of late. Since the
introduction of the Chrysler 300--that would be the 2005
Chrysler 300—there haven’t been a whole lot of
Chrysler/Dodge/Jeep products with significant road appeal.
Certainly, the new Challenger has the sauce, but that’s going to
be a comparatively low-volume vehicle, not the sort of thing that
is going to drive sales volumes to peak positions.
Then there’s Chrysler engineering. It is easy to lose sight
of the fact that Chrysler engineers have been doing
yeo-persons’-like work over the past several years. They’ve been
overcoming obstacles and creating opportunities. Alas, it seems
as though some other people in the system (perhaps in Purchasing)
haven’t followed through on the opportunities, so some of this
work has been overshadowed by things like interior materials that
are often more bargain than brilliant.
Manufacturing is a real strength at Chrysler. Arguably when
GM and Ford were still talking about production systems, Chrysler
was executing and implementing its Chrysler Operating System.
Frank Ewasyshyn, who is presently executive vice president of
Manufacturing, was there at the start of that flexible,
cost-effective production initiative. In the many years that I
have known him, Ewasyshyn has always shown a depth of technical
understanding and bias toward action instead of platitudes that
is uncharacteristic of executives (it is interesting to note that
he started at Chrysler in ’76 as a maintenance foreman, so he
literally worked his way up on the strength of understanding and
abilities).
Chrysler has more than 30 manufacturing facilities in
North America—casting, stamping,
tool making, assembly.
Which brings us to the possible point of brilliance and
fulfillment of rule #1.
Recently, Chrysler announced that it will be producing a
full-sized pickup for Nissan at its plant in Saltillo,
Mexico. To
accommodate that production, Chrysler will need to shift some of
its truck production north. But the flexible plants should be
able to accommodate that without a hitch. Chrysler is first-rate
at building trucks. It’s not so hot in the small car category.
Nissan will provide it with a small car, which will undoubtedly
make its dealers happy. But undoubtedly, the real money in this
is in the manufacturing part of the business—making those
full-size trucks for Nissan.
Soon you’ll be seeing a VW minivan, the Routan. It is being
manufactured in Windsor, Ontario. No, VW hasn’t slipped
in a plant that you’re not aware of. It is being built at the
Windsor Assembly Plant—the Chrysler Windsor
Assembly Plant, along side Grand Caravan and Town & Country
models. Once again, Chrysler manufacturing is getting it done.
Isn’t it possible that going forward Chrysler will become
more of a true manufacturing company—a manufacturing company
whose business is primarily producing products for other vehicle
manufacturers? In an environment where there is overcapacity,
doesn’t it make more sense for vehicle manufacturers to turn to a
specialist—like Chrysler—for producing products rather than
plowing under greenfields or trying to refurbish brownfields?
Isn’t it possible that Bob Nardelli and the people at
Cerberus see Chrysler as a great (North) American Manufacturing
Company first and foremost? Certainly, this doesn’t mean that
the company would stop designing, engineering and producing its
own cars and trucks. But the assets and the understanding, the
presses and the people, and all of the other aspects of Chrysler
manufacturing—they’re the real things to be cherished and
utilized in pursuit of Rule #1.