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Lean and agile Chrysler pushes global growth

14th January 2008 Print
The newly-independent Chrysler is a leaner and more agile company that can make quick decisions, believes new CEO Bob Nardelli. Chrysler returned to private ownership last year after Cerberus acquired it – and for the first time in 50 years, a major American automaker has become a non-public company.

Nardelli, appointed to run the company by new Chrysler owner, private equity firm Cerberus, said: “The DNA of the new Chrysler is distinguished by a willingness to take risks and innovate.” Key words are “lean, agile and flexible”, he added, together with “a focus on the customer like never before”. But the crucial difference is the fact that “I can make decisions very quickly,” he said.

Nardelli is focusing on growth outside North America, and he reported non-North American sales in 2007 of 238,000 cars – “the highest in our history”. This was 15% more than 2006, and Nardelli expects that growth to continue at a similar rate this year. “If we can carry on at this rate for five years we will double the size of the company,” he said. “And I believe we can achieve that in even faster time.”

Evidence of the new, agile Chrysler comes in the shape of new alliances, including a deal for Nissan to build cars at plant in Mexico, based on the Versa small car, for supply to Chrysler’s South American operations. Perhaps more significant is the tie-up with China’s Chery to build small cars.

While Chrysler and Chery are not setting up a formal joint venture, the terms of their agreement foresee a 25-year alliance whose specific details are yet to be finalised, though it will centre round Chery manufacturing various small car models for Chrysler to sell worldwide. The deal is more wide-ranging than just one model: “We’ll have a whole portfolio of small car products going forward,” said sales vice-president Jim Press.