Chrysler faces a brave new world

Chrysler Group is getting down to the business of re-establishing itself as an independent manufacturer, following its acquisition by private equity firm Cerberus. And it’s a leaner, more agile business now, says Thomas Hausch, Chrysler’s recently-appointed vice-president of international sales.

There are the two core advantages of Chrysler’s new independent status, Hausch said: faster decisions, and greater freedom compared to a public company.

“We don’t have to ask a German board of directors, of whom 50% are representatives of the German workforce,” he said. “This makes it very complex to explain why an American corporation wants to do a collaboration on a B-segment car with a Chinese company like Chery, for example. So the decisions are much quicker.”

And the demands of stock market analysts no longer need to be taken into account. “Being the largest private automotive OEM gives us the freedom of not having to double-think what the average European stock analyst’s view.” Instead of fretting about the share price, decisions can be made for the good of the business. “We might be better off having a bad quarter but investing a lot of money in a new product that helps us in two years’ time,” he said.

Daimler retaining minority stake in Chrysler, and that’s a good thing, he adds. “Our co-operation with Daimler continues on technology and international distribution. 2006 was the most profitable year in the history of the Chrysler Group’s international business, and we want to boost that even further.”

At Frankfurt, several new models were unveiled – notably an all-new Jeep Cherokee, the new Chrysler Grand Voyager first seen at Detroit in January, and the new Dodge Journey crossover. “Our customers want cars that are both practical and sexy,” said Mike Manley, Chrysler Group executive vice-president of international sales.

Hausch maintains that Cerberus is in for the long haul. “Our investors are looking for asset growth and value growth, and that is a long-term exercise,” he said. “Selling the company back to another OEM car company is not the plan.” A more likely outcome would be a stock market IPO, he said.