Detroit Disease Inflicts Chrysler

Chrysler was once admired for its toughnessbacklash," Appel added.
even at a point where the atmosphere isChrysler President and CEO Tom LaSorda said
attracting slumping sales and massive losses.that the company intends to become more
Nonetheless, according to some analysts, it seemscompetitive internationally with a portfolio of
that Chrysler has lost its protective cloak andsmaller cars. "We're addressing those issues and
eventually been inflicted with the so-called 'Detroitmoving our product portfolio to a mix that's more
disease'.in line with the recent realities and market trends,"
Automotive reports are showing that Chrysler willLaSorda elaborated.
lose $1.5 billion in the third quarter, about more"But while new products are important, Chrysler,
than twice what it had expected beforehand. Thislike Ford and GM, needs to do a better job of
loss is brought about by the slow sales ofmanaging its car and truck inventories with flexible
gas-guzzling trucks and SUVs.manufacturing processes like those used by Asian
According to Tom Appel, editor of Consumermanufacturers," said Kevin Reale, research
Guide Automotive, "The company has been hitdirector for AMR Research.
especially hard by the public's growing desire forAnalysts are also saying that Chrysler lineup has
smaller, fuel-efficient cars. But the issue may beother problems. One problem is its limited offer in
more one of a perception than a reality."the midsize SUV market. On one hand, the sales
"I think Chrysler's being hurt by a generalof Dodge Durango have dropped off abruptly. To
impression that its large and hitherto well-receivedcircumvent the decline in sales, the automaker is
cars like the Chrysler 300 and the Charger aremodifying the Chrysler auto parts to set forth a
not very fuel-efficient, and so there's a bit of astriking lineup.