Chrysler Dealers Still Hoping for the Automaker's Survival

The same day that American billionaire and investorCorp. Jeeps, Dodge trucks, and minivans have
Kirk Kerkorian offered a bid of $4.5 billion for Chrysleraccounted for 70 percent of Chrysler's sales at the
Corp., is the time that a car salesman in Southold, Newtime when gasoline cost nearly $3 a gallon in the US.
York was also dusting off a framed print.The Struggle of Chrysler Dealerships
Chrysler dealer Dick Mullen said last April 5 while smilingMullen for his long years of selling Chrysler products
at an editorial cartoon from the 80s, "Time to hang thishave weathered out very storm. He and his father
up again. It shows a car bursting from the groundeach bought $10,000 of Chrysler's debentures in 1980
beneath a gravestone marked ``Chrysler: R.I.P.''that earns them 11 percent interest per year interest. It
Mullen's shop has stayed on Long Island's northeastwas also their Chrysler dealership that was the first to
corner for 80 years and has witness to the rise andsell Jeep in the US after the company bought
fall of Chrysler through decades of miscues. WayAmerican Motors in 1987. Mullen has met Iacocca
back in the 80s the good old Mullen has loanedtwice and later he was invited along a handful of
Chrysler some $10,000 when it was nearingdealers at a lunch at New York's Waldorf Astoria
bankruptcy. And today Chrysler's future is again on thehotel.
brink as its German parent DaimlerChrysler AG isThe main purpose of Daimler for purchasing Chrysler
opening all options for its sale. Despite the somewhatis to gain mass-market American foothold.
bleak future that Chrysler is facing today, MullenUnfortunately instead of the gain it is expecting it has
remained calm and unafraid leavening the wait gallowsfound itself struggling because of price discounts and
humor.union retiree costs that add $1,300 to the price of each
According to Mullen, 70 when he told sales Chiefcar. And today with oil prices surging high some
Steve Landry at New York Auto Show last April 4,investors see the future of Chrysler as becoming
"It's the fourth time I'm going out of business with youbleaker than before.
guys, I'm getting a little tired of it." He also suggestedAccording to Tim Gilbert, who helps manage $10 billion
for Chrysler to write a book based partly on hisin assets including DaimlerChrysler bonds at principal
up-and-down ride and pass it out to future executives.Global Investors in Des Moines, Iowa, "When the
Landry said as a way of confirming his conversationproduct cycle turned, the ugly really outweighed the
with Mullen, "Most of our dealers have faith, and theygood." He also said that he firm is adding more bonds
know that whatever happens, our brands andof the Stuttgart Germany-based carmaker because it
products are not going anywhere." He also said that heshould be more stable if it sells Chrysler.
plans of meeting with as many as 50dealers this yearDaimlerChrysler shares on the New York Stock
to answer questions and to mend relationships.Exchange have jumped 25 percent to $80.69 since
Surveying the business of Mullen and the rest of histhe company has announced last February 14 of its
fellow car dealers on Long Island, it's hard to miss theplans of getting rid of its money-losing arm Chrysler.
obvious fact that the Japanese carmakers influenceOverproduction is the Problem
has also reached Long Island.Mullen says that Eaton was smart to sell when
The UnionChrysler was riding high. But he was less happy last
Chrysler maker of Dodge truck parts and Dodge truckyear, when Chrysler's production outstripped demand.
accessories has been a one of the 'Big Three' USMullen and the other dealers were left with unwanted
automaker alongside General Motors Corp. and Fordvehicles. This has provided Mullen with the idea for his
Motor Co. way back in 1929. Unfortunately out of thebook which he has given the theme: 'Overproduction
'Big Three" it's only GM that has successfullycauses problems.'
maintained its post.Landry also said that he is aware that dealers were
The wrong decisions that have been plaguing Chryslerupset and that is why he's meeting with many of them
started back in 1970s when the Auburn Hills,this year. The most perplexing thing that Mullen found
Michigan-based automaker try to push gas guzzlers ason the potential sale is that Chrysler cars have never
oil buying habits were changing. Chairman Lee Iacoccabeen better. As a matter of fact the Crossfire sports
was able to avoid bankruptcy when it acquired $1.5car shares 40 percent of its parts with Mercedes
billion government-guaranteed loans. After a revivalincluding the engine. The Chrysler 300 on the other
behind the compact K-car and the minivan, the UShand makes use of the same axles and transmission
automaker once again embarked in 1998 on a rockyas the Mercedes E-Class sedan.
$36 billion union with Daimler, the maker ofChrysler is also narrowing the quality gap with Toyota
Mercedes-Benz.just last year the average new Chrysler had 12
The union only plunged Chrysler to graver financialpercent more problems than a typical Toyota basing
crises that went on for more years than anyone canon the results found by researcher J.D. Power &
remember. Chrysler has obtained a $1.5 billion lossAssociates in Westlake Village, California. But despite
which prompted its German parent to investigate asuch that average is much better than the average
sale. It was also then that Chrysler has surrenderedindustry gap of 15 percent and far better than the 22
the No.3 slot in the US market share to Toyota Motorpercent that Chrysler incurred in 2000.