In a huge surprise, Chrysler has decided to decline US government help and instead accept help from Mercedes, which still owns 20% of Chrysler. Under the plan, Chrysler will introduce competitive platforms starting in June
2009, with a total of three new platforms available by December 2009.The V6 versions of the Chrysler 300 and Dodge Charger will be replaced by front drive models with better fuel mileage and more interior room. The Hemi powered rear drive 300 and Charger will be retained to fill their proper role as specialty models built mostly for status rather than for wide market appeal.
In the midsize segment, the current Mitsubishi sourced Sebring and Avenger, awkwardly styled in the theme of a brick set on edge, will be replaced by lower, sleeker, and more aerodynamic models. In the compact segement, the PT Cruiser will be retained since it has proven appeal as a styling curiousity. The Dodge Caliber, also curiously styled but without a retro look to work in its favor, will be replaced by a conventionally styled small car which will have wider appeal.
Mercedes announcement that these changes can be accomplished in a six to twelve month time period and at a cost of a mere $1.6 billion initially baffled industry observers. "I wondered how Chrysler could produce three new lines of roomy and economical front drive cars - cars that are right for America - so quickly and for so little money" said Joseph Camel of the Brand Research Institute.
But then came the surprising answer. The solution to fixing Chrysler's current unsaleable car lineup is merely to replace the current cars with the cars they replaced: 2004 Concorde/Intrepid, the 2007 Sebring/Stratus, and the 2002 Neon.
"This is an investment in the future" said Mercedes spokesman Heinreich Tungensheek. "By spending this money, we expect the value of our 20% stake in Chrysler will eventually rise to zero!"