So Chrysler is selling a stake in itself to FIAT in an attempt to market attractive small cars? The former domestic small car leader is now going to rely on a company who could not successfully sell its cars in the U.S. to save it from impending doom.
Those who are not familiar with the auto sector may have trouble believing that Chrysler was a leader in anything, but lets get a few facts straight. The last domestic small car to turn a profit was the first generation Dodge / Plymouth Neon. Also, Chrysler was a pioneer of high output, but affordable small engines (the 1985 Dodge Omni GLHS ran 0-60 in about six seconds). A derivative of the original Neon engine powered BMW's Mini.
How did we get here? Following the launch of the Neon and Intrepid in the mid-1990s, Chrysler was the most efficient domestic auto manufacturer and was profitable. However, instead of putting that money back into the company to develop new models. Chrysler spent lavishly on bonuses and higher union compensation. By 1998, Chrysler needed a partner.
Daimler was a disaster for Chrysler. Daimler tried to take Chrysler upscale and stopped nearly all development of small cars. The only small Chrysler being made is the Dodge Caliber / Jeep Compass. This is a heavy, small pseudo-SUV. Oh how the mighty have fallen. FIAT could not make its former venture with GM work and I have doubts about its partnership with Chrysler.
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