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