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DaimlerChrysler removing standard items to cut costs?

Posted by mike on 2002/7/29 23:00:00 (1503) reads

In an article about DaimlerChrysler's financial health, it appears that some once-standard items on Jeeps will be available only as options on future Jeeps.

In an effort to cut costs, it appears that DaimlerChrysler is going to start offering certain now standard features as optional features in future Jeeps. Here's a snippet from the article on Yahoo! News:

Chrysler Group is no longer fighting for its life, and its restructuring plan is curing it sooner than expected, the chief executive of DaimlerChrysler AG's U.S. unit said Thursday.
"We are clearly focused on lifting this company from the struggle for survival to a new standard of excellence," Dieter Zetsche told reporters.
New products in Chrysler's push-the-envelope tradition will maintain the automaker's momentum, he said.
"If we try to find a mainstream strategy, we won't be around in 10 years," he said. "We were never copycats. We always looked for our own way."
From this year through 2004, Chrysler will have introduced 11 new vehicles and revamped 10 others through 2004. They include the 2003 Chrysler Pacifica, an SUV-minivan hybrid, and the 2003 Chrysler Crossfire, a sports coupe designed in the United States by American and German engineers and built in Germany.
The near-term product lineup will blend Chrysler's reputation for innovative design with more of the technological savvy of corporate sibling Daimler-Benz, Zetsche said.

...snip...

Chrysler also wants to get out of another unwanted facet of competition with GM and Ford: eliminating features to cut costs while hoping customers won't miss them. Chrysler is removing certain previously standard items such as tachometers on base-model minivans and roof racks on Jeep Grand Cherokees.
"As a general principle, I do not believe we should turn our cars into empty cans," Zetsche said.
Chrysler sold about 2.9 million Chrysler, Dodge and Jeep vehicles in 2001. Zetsche said the automaker has set a target of selling 4 million vehicles in 2011, but he didn't know how the ratio between light trucks and passenger cars.
According to Ward's Automotive Reports, light trucks — including minivans — accounted for an industry-leading 74.3 percent of Chrysler's U.S. production in the first half of 2002.

Be sure to check out the entire article.

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Anonymous	Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00
	Originally posted by: Utah I think the point of the article is that Jeep wants to cut the options....but NOT the price. So...don't expect to see a lower sticker price because the Liberty or whatever has no roof rack on it. So...let them do it and go it alone. In the end, they will be forced to change back, because you can be sure that the competition will not remove racks, tachs, etc. It's like this. You can as a manufacturer wish and hope, but in the end....the consumer is GOD, and is not stupid about these things. Especially in this day and age of the Internet etc for research. At, least that's what I think.

Poster	Thread
Anonymous	Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00
	Originally posted by: Tommy Personally I'm okay with this. When I bought my Wrangler, I chose one with quite a few options like AC and cruise because it is my daily driver and my offroading vehicle. But I don't think everyone who buys a Wrangler needs or even wants AC and cruise. I like the idea that I can buy a stripped-down model and customize it to my needs and tastes. For example, I don't have kids, there will never be a kid or carseat in my Wrangler, so I want one without a child restraint system. A friend of mine is stone-deaf, so he doesn't want to pay a higher sticker price for a standard "Bose audio CD changer".

Poster	Thread
Anonymous	Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00
	Originally posted by: Ron Sanfason I hope these corporate a-holes realize that these "standard" features prices are in fact built in to the price that we pay for these vehicles. If they are going to remove these features I certainly hope that the prices will be down-sized as well. The public has been getting ripped off by corporate no-goods for too long. I've recently experienced the fact that they are already cheapening their products. An armrest on a 2000 Grand Cherokee that tore where your elbow rests at 43,000 miles is evidence of this. I have owned 3 other Jeeps in my life with each having over 140,000 miles with no evidence of wear is proof that the cheapening has already begun. I think that I have have bought my last Jeep and Chrysler vehicle. And you know what, they just don't care.

Poster	Thread
Anonymous	Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00
	Originally posted by: Jeepaholic Bill Well the problem with that is that unless you intend to pay a higher price for your vehicle by ordering it custom rather than picking one out in a dealership, chances are the midnight blue Jeep whatever you fall in love with might be missing something you'd want and once vehicles reach the dealership some options can't be added (such as the tach). Most people don't order a car, they pick one out at the dealership. And how much does a tach cost them, anyway? I understand over tons of vehicles it adds up but gheez, I'd rather chip in $10 more when I buy a Jeep than to be without a tach.

Poster	Thread
Anonymous	Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00
	Originally posted by: Richard here is my commentGood bye Jeep hello rice burners.

Poster	Thread
Anonymous	Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00
	Originally posted by: Jon I think that diamler chrysler needs to take thier heads out of thier asses and see that Jeep is not just a car company, but an american legend. And with all the lawsuits that Jeep is getting, taking off a roof rack is not going to help anyone. I think that they need to actually listen to peoples ideas and bring Jeep back to where it should be, on top. Now they are getting a little nervous with the money problems, and theyre probobly going to be doing some stupid things. I think all they need to do though is just listen to people and the sales will pick up, and everything will be ok.

Poster	Thread
Anonymous	Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00
	Originally posted by: Erik Well, the idea of offering "no-charge" air conditioning, etc was stupid to begin with. Let people pay for the options they want and make sure that each option comes with a nice profit.

Poster	Thread
Anonymous	Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00
	Originally posted by: Scuba Steve Well, they removed the testicles from the Cherokee and renamed it the Liberty, and the public seems to be buying them. Let's see what else we can chop.

Poster	Thread
Anonymous	Posted: 1969/12/31 18:00 Updated: 1969/12/31 18:00
	Originally posted by: XJKEN If they are going to get rid of certain features that are now standard Dieter, you are planning to lower the base price of the vehicles, right? If you think we AMERICANS are that stupid maybe we'll just shop somewhere else.


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