 DaimlerChrysler Mitsubishi Split Will Not Affect Future Jeep Model
Posted by mike on 2004/4/27 23:00:00 (265) reads
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Low-end Jeep not in jeopardy
If you've been following the auto industry over the past few days, you've no doubt heard that DaimlerChrysler has decided to no longer financially support the struggling Mitsubishi Motors. Why does this matter to Jeep lovers? Because it has been rumored that Mitsubishi was working with DaimlerChrysler on a low-end Jeep (possibly a Compass-like vehicle). Here's a snippet about the breakup from Detroit Free Press:
DaimlerChrysler AG, which owns a 37-percent stake in Mitsubishi Motors Corp., will not be bailing out its troubled Japanese affiliate, as was widely expected and reported.
In a special meeting on Thursday, the management and supervisory boards of the Stuttgart, Germany-based automaker decided "not to participate in a capital increase" and "to cease financial support" for Mitsubishi, according to a short statement DaimlerChrysler released late Thursday.
The surprise announcement seems to throw the fate of Mitsubishi into the air.
Yesterday, we found an article that claims that DaimlerChrysler's bailing on Mitsubishi will not affect future DaimlerChrysler products. Here's a snippet from CBS MarketWatch: The low-slung Chrysler Crossfire coupe is the proud child of the marriage of Daimler-Benz and Chrysler, a sleek symbol of corporate "synergy" and engineering.
To the automotive world, the Crossfire showed how important DaimlerChrysler's engineering and products are to the revival of the American automaker, once the most profitable, in its home market.
Chrysler's latest sedans, taking a cue from European rear-wheel-drive engineering, are also being well received.
Yet it's much harder for buyers in the U.S. to find a symbol as attractive or compelling from Mitsubishi Motor Co.'s stepchild relationship with DaimlerChrysler, which dates to Chrysler's first ties in the early 1970s.
That helps explain why DaimlerChrysler's stock rallied on news that it was cutting off any new funding to Mitsubishi, whose stock plunged in Tokyo.
The Dodge Avenger and Chrysler Sebring coupes borrow from Mitsubishi, and the long gone Eagle Talon was twinned with the Mitsubishi Eclipse. But those predate the 37 percent stake, worth $2 billion, that DaimlerChrysler took in Mitsubishi during 2000.
...snip...
Chrysler says that the change won't alter its planned vehicles.
"The announcement last night that DaimlerChrysler would not fund further capital investment in Mitsubishi has no bearing on our current relationship with them from a product standpoint," said Chrysler spokesman David Elshoff.
Expected to continue are the development of small cars like the Chrysler Neon and new Jeep models, while a Mitsubishi truck based on the Dodge Dakota for 2005 is also in the cards. A plan to develop a four-cylinder engine with Hyundai and Mitsubishi remains unchanged.
DaimlerChrysler's relationship with Mitsubishi is more complex than a few cars and pickups. The company owns more than half of industrial transportation specialist Mitsubishi Fuso, as well.
Check out the entire article.
Reader Reactions
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| Anonymous |
Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00 |
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 Originally posted by: Jon "They just need to identify that critical path and stick to it without being sidetracked by short-lived successes from other companies."
I like that line. Would this be meant to include Hummer? Everyone wants Jeep to build a Hummer like vehicle. I think this is a bad idea as I think the H2 will be a short lived success.
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| Anonymous |
Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00 |
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Originally posted by: Jeeper I agree, if I wanted a soft roader I'd buy an Outback. Why does Jeep need to tap into existing markets when it can expand on in its own market or perhaps dive into new territory? Chevy did that with the Avalanche, and now it seems everyone wants to make an SUT. (Im partial to calling a TJ Scrambler an SUT, it just sounds like a copy-cat).
Why can't Jeep tap into some of its inherited creativity and create something to add to their lineup thats stunning and different yet practical and rugged? or is it time for some new well-grounded designers in the studio who still recognize what a Jeep is...
Progress is a very hard line to follow, even more so for a company like Jeep. Its very easy to think you are progressing when you are actually just falling away from that line (a softroader for example). The Jeep brand can be expanded without taking hits to its reputation. They just need to identify that critical path and stick to it without being sidetracked by short-lived successes from other companies.
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| Anonymous |
Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00 |
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Originally posted by: DothanTj I would like to see Jeep build a Rescue and put it head to head with an H2 in a public contest. Let's see who wins.
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| Anonymous |
Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00 |
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Originally posted by: Wyatt here is my comment
I was referencing the article below. What bothers me is the comments: "nobody cares what's underneath," Zetsche says.
There are also other articles out there with specs.
You're right. I don't have to buy one, if I don't like it. But, I'd prefer to go with Jeep to bring in revenue so that vehicles like the Rescue can eventually be built rather than spending money with another auto maker.
Plus - according to what I read - the break up means that D/C will have a lot less influence on vehicles made by Mitsubishi even if these vehicles contain the Jeep name plate.
May be that'll be a good thing :).
When Ford allowed Mazda to sell the Explorer rebadged as the "Navajo", they only allowed Mazda to sell the "lower end" versions.
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Front-Wheel Drive Jeep? - posted 4/6/2004
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We just got wind of this story yesterday, on the subscription-only AutoNews.com site - now it seems that other media outlets are picking up on the story. Here's a snippet from AutoWeek.com:
The Chrysler group is developing a Jeep model from a front-drive platform, a bold departure for a brand that specializes in rugged off-roaders.
Two industry sources say the new Jeep will be based on a small, fwd platform co-developed with one of Chrysler's alliance partners. One source says the partner is Mitsubishi.
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"Is there a chance that one of our alliance partners could use this same platform that we would use for one of the Jeeps? Absolutely," says a Chrysler source familiar with the project who asked not to be identified.
The vehicle is part of a plan to expand the Jeep line from three to at least five nameplates by early 2007, a source says.
The two-door Compass, a small, entry-level concept that debuted at the 2002 Detroit auto show, signals the styling direction for the new nameplate, an industry source says.
Some Jeep loyalists at the company believe creating Jeeps off shared platforms will erode its brand image. But Chrysler group CEO Dieter Zetsche has said Jeep can share parts, electrical systems, powertrains and portions of vehicle platforms, yet maintain its distinct identity.
Such sharing saves development time and money.
If a Jeep vehicle meets or surpasses a buyer's expectations, "nobody cares what's underneath," Zetsche says.
Uh - did he just say what I think he said? Maybe it was taken out of context or something - read the entire article to find out.
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| Anonymous |
Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00 |
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Originally posted by: FullSizeR I would love to beable to purchase a New
Jeep Pickup, that could compete against the
other full size pickups out there. In Size,
Power, 4x4 SetUps and Engines...ect.
"Come On Jeep Corp., What Are You Waiting
For, Build Them And They Will Sell".
"Keep ~ 0n ~ Jeep'N"
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| Anonymous |
Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00 |
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Originally posted by: skramblewishes There was a time when Cadillac was the benchmark in luxury cars. GM decided to chase sales numbers in the 80's and decided to put a Cadillac crest on a Cavalier and pass it off as a luxury car (Cimarron). They decided to platform share their models with lower end GM divisions. GM got some short term bumps in sales and twenty years later, after soiling and devaluating the Cadillac brand, they have decided to go back to their roots and build premium cars ( XLR, SRX, etc. )again.
There was a time when the Chrysler division looked eye to eye with Cadillacs and Lincolns. In the 70's they decided to increase sales and came out with lower end models ( Cordobas and LeBarons). They got some short term sales bumps. Now, twenty some odd years later, DC has decided that somehow, some way, they have to go back to their roots and build premium cars again ( at premium prices ).
So now here is Jeep looking for a short term sales bump by making an entry level "soft roader". I really think they should think twice before trying to redefine what a Jeep is and how it is perceived in the market place. Years from now they me be wishing to become what they already are.
It seems to me DC could grow Jeep sales with the Dakar, a full sized Grand Wagoneer and a Scrambler or SUT.
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| Anonymous |
Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00 |
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Originally posted by: ? Better than what?
We don't even know exactly what they are going to do. If you don't like what they do, don't buy one.
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| Anonymous |
Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00 |
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Originally posted by: Wyatt here is my comment
Darn.
When I saw this on carconnection.com, I hoped that the new soft-roader Jeep would have been dropped but I guess not.
Most automakers are forecasting that the smaller cross-over vehicle fad will replace the SUV fad.
I don't mind Jeep building a cross-over vehicle but I wish it were something better than this.
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