7th July 2009

Chrysler Endures Compact, EV Turmoil

posted in Car News Articles |

So much for the bailout leading to a compact/alt-energy über alles approach. The newly reconstituted Chrysler has lost its A/B segment (compact, city car) vehicle line chief and will be cutting nearly half of its Global Electric Motors (GEM) dealers. Of course, Chrysler’s A/B segment vehicle lines are empty at the moment, and aren’t likely to be filled with anything beyond cynical Fiat rebadges. Is that why Andreas Schell, who came to Chrysler with the Daimler merger, is leaving? Chrysler spokesfolks tell Automotive News [sub] only that they knew Schell “has left the company but didn’t know where he is heading.” Meanwhile, Chrysler is culling 64 of its 150 GEM dealers because “many of the rejected GEM dealers failed to sell more than a handful of GEM cars [er, Neighborhood Electric Vehicles, actually] in the past 12 to 24 months or longer… The debtors have determined that the GEM dealership agreements are neither necessary nor valuable to their estates and should be rejected.” Of course, perhaps the problem isn’t so much the dealers as the vehicles… but good luck getting a judge to rule that way. In any case, the one GEM dealer that the Freep spoke to was glad to see the GEMs go, saying they never sold regularly or particularly profitably.

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