Turn Chrysler Into Toyota? We Have A Better Idea!

This is so obvious now, it makes your teeth hurt, doesn’t it? Or are we the only ones who see this coming?

In the last month, two automotive industry events occurred that are signposts to the future. Tata Motors of India has designed and will build a 1 Lakh [sub $2500.00 US] car, something other car companies the world over said was impossible. Other Asian auto makers are planning similar sub $4000.00 (US) cars. The Tata RS 1 Lakh is being hailed as an engineering milepost. It took 500 engineers, and resulted in over 40 patents. Across the globe, Chrysler LLC recently told its dealer network that it will shrink and consolidate the network, and also its own model lineup to better reflect marketing realities and eliminate redundancy. The additional puzzling comment by Chrysler executive James Press (formerly of Toyota), is that they will also develop new models to fill “gaps” in the model lineup.

Common industry wisdom now sees Press and his boss Nardelli as trying to take cues from the Toyota playbook. On the surface, this seems bulletproof, to imitate the (soon to be) World’s Largest Automobile Company. However, we beg to differ.

Turn Chrysler Into Tata! Or at least, steal THEIR play book.

Just in case Chrysler isn’t paying attention, current and foreseeable US (and worldwide) market conditions say that trucks and SUVs will have limited use as personal transportation over the coming years. Think Wars and Oil here. Of course, the Tata RS 1 Lakh is designed as a 5 passenger vehicle, so it should be possible to make a 2 passenger mini truck out of it.

Why let China be the first to bring a practical “value car” to the US market, and rub US automakers noses in their own heritage? Henry Ford must be turning in his grave. His principle of requiring that one of his workers be able to afford a practical basic car with cash in hand has been squandered. Now, inflated auto worker wages and pensions conspire to require them (and all of us) to take out longer and longer loans to acquire bloated, rolling blingmobiles.

Stop the madness! Recession proof your wallet and your portfolio! Buy a Tata.