ChryslerTop management in all divisions overspent, especially, in new product development and generous union contracts were continually signed year after year. Vehicle prices soared with little consumer incentives and franchised dealers were placed in the position of moving product which consumers didn't want.
The Chrysler Crossfire, when introduced was fine but had many mechanical problems, as did the Sebring. When the PT Cruisers came out, the marketing was great but the assembly lines couldn't keep up with the demand and many turned to other manufactures who were tired of waiting for PT Cruisers to hit showroom floors. Too many product lines were dropped or modified leaving Chrysler fans up in arms. Loyal Jeep owners weren't pleased with the stoppage of the base Cherokee. Still, spending continued with little concern for regaining profits to pay expenses. In the end, Chrysler, LLC was forced through a bankruptcy restructuring and now ownership is very diverse including the entering Fiat Still, brand loyalty or Chrysler is at an all time low.
- What, according to you, is the principle reason for Chrysler's failure?
- What was the basic problem with Chrysler Crossfire, Sebring and PT Cruisers?
- Was poor management also a factor responsible for Chrysler's failure?