Quote:
Originally Posted by Zacharias
Why does anyone think Mercedes bought Chrysler? It was for two reasons: First, they needed to learn how to make cars cheaper, and needed to learn it quickly.
Second, they wanted to piggyback on Chrysler's parts distribution system and methods as they were apparently at the forefront of the industry at the time (I have to agree, when I owned a Dodge Magnum I could call in the AM and have a special-order part in my hand at 5 p.m.).
This was what was told to me by a veteran MBz parts manager. He and other experienced parts guys were seconded to Chrysler for six months to learn their system and help to implement it at Mercedes.
All cars are more cheaply built and built with less robust materials than 20 years ago. They also tend to be built using larger "systems" rather than more individual parts, which increases the price of repairs many-fold.
And yes, globalization means that your Mercedes wiring harness may be made offshore and if Mercedes is spec-ing work on a low-bid basis... well....
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Agree.
I was one of the German-English interpreters on the DB Chrysler Integration Team in 1998-2001, involved in a lot of follow-up.
I found out that when Schrempp became head of Mercedes vs. the whole company, he went on a cost-cutting tear that reduced durability in a lot of areas, betting that people would sell their cars and be enticed into newer cooler ones.
That didn't happen and he ended up getting an engineering genius named Huebbert to run a lot of things and fix what had gotten messed up.
A lot of stupidity in those days, because certain big shots thought they could ride the tide of big sales and the Internet boom to become zillionaires.
All I can say is: Bob Lutz told them they were wrong, as vice chairman. The gang got together and bought him out for 25.4 million. He left, became CEO of Exide battery and turned them around, then became vice-Chairman at GM.
One Chrysler senior exec saw his "share of the pie" go from 115 million to 4 million when the stock bubble tanked. he used to call up the Chrysler Board and ask them to send him extra money for security because he was getting so many threats!
In the meantime, Bob Lutz, the dude who told people to be honest, laughed. All the way to the bank.
That's why I date the death of Chrysler to 2001-2002.
Zetsche pulled things together, first at Chrysler then at Daimler, but no one person can rebuild everything by himself.
There was no more morale.
Think there is now, at FIAT Chrysler?
The a$$ kissers and staff of Human Resources are spending their extra time polishing apples and learning Italian.
Won't do them any good.