November 4, 2009 11:39 AM

Chrysler Group CEO Sergio Marchionne and the executive team field questions from the media and financial analysts.

 

  • FInal Thoughts
Marchionne wrapped the day-long event by saying he knows there are plenty of skeptics in the audience. He faced plenty of naysayers when he joined Fiat in 2004.
 
“It was as if there was a competition of who could write the best chronicle of a death foretold,” he said.   
 
Five and a half years later, Fiat has not only survived, but thrived, reporting a record profit in 2008.
 
Marchionne drew a similar parallel to Chrysler’s challenges and its potential today.  While Chrysler Group and its brands will always have their roots in America “and that will never change,” the company can learn many things from the Fiat experience.  
 
“We are at the beginning of a genuine transformation,” he says. That doesn’t mean the management team will be performing miracles, but working toward shared goals, such as embodying a meritocracy, embracing competition and forging ahead with integrity.
 
“Chrysler, as Fiat has done, needs to live the culture of change,” he said. “I’m not here to judge the past, what is important is the future.”

 

  • Q&A  

In response to a question, CEO Sergio Marchionne repeats the pledge of earlier speakers, that by 2014 Chrysler improves its fleet fuel efficiency by 25%.

That may not sound like a big number but, Marchionne says, "It is a lifetime of development work. You’re going to look at a fleet of vehicles that is significantly different."

 

  • Chrysler 

Like the Chrysler Building in New York, which "doesn’t simply scrape the sky but pierces it," the new Chrysler brand will merge refinement with excitement.  That's the direction Olivier Francois of President and Chief Executive Officer - Chrysler Brand, Chrysler Group LLC and Lancia Brand, Fiat Group Automobiles is taking the brand.  

The new Chrysler's attributes will stay true to the Chrysler DNA. Francois says by 2014 entire product lineup will be reshaped.
 
The new Chrysler Brand logo
 

 

- Continually improving customer care will be a key element in Chrysler's growth, says Pietro Gorlier, President and Chief Executive Officer Mopar® Service, Parts and Customer Care. The company will roll out a new system to monitor, identifiy and fix problems in customer service quickly.  In addition, the company will launch a brand-focused customer interface. In January 2010, the Chrysler Group will roll out dedicated US toll-free numbers for each brand, including Chrysler, Jeep, Dodge and Ram.  The move reflects the brand orientation inside of the customer care process.  Gorlier also introduces the Mopar eStore, to address the huge online market.  The eStore will open it later this month.

 

- Michael Manley, President and CEO for the Jeep® Brand as well as Lead Executive for the International Organization, presents the case for Chrysler’s growth potential overseas, with a global portfolio that leverages the expertise and infrastructure of partner Fiat. For the future, the company is developing a global portfolio of vehicles that will cover two-thirds of the global market segments and have a powertrain portfolio that reflects consumer demand. This product portfolio will be sold either under the Chrysler or Lancia brands outside of North America. The Jeep brand will continue to have a strong global presence while the Dodge and Ram brand will leverage regional opportunities.

- Peter M, Grady, Vice President – Network Development & Fleet, says the Fiat 500 will attract new customers to the company. The vehicle will be sold mainly in metro markets at select dealers that house all Chrysler Group LLC brands and will include a dedicated salon inside the dealership.

- Daniel C. Knott, Head of Purchasing, says Chrysler’s synergies with Fiat when it comes to purchasing and supply chain management will result in direct material savings of an estimated $500 million by the end of 2010 and an estimated $2.98 billion between 2010 and 2014.

- Scott R. Garberding, Head of World Class Manufacturing (WCM), says the Fiat-developed system is helping Chrysler to examine the manufacturing process with new eyes toward efficency with a target of of ZERO: Zero waste, zero material loss and zero injuries. And it's already begun across all Chrysler North American facilities.

- Michael Manley, President and CEO Jeep® Brand, says going forward, in each SUV segment from B through E, Jeep will offer its classic Jeep styling, versatility and functionality in a fuel-efficient package with both two-wheel and all-wheel-drive options, opening up the brand to new customers. For the very important core Jeep customer base, the same package will be evolved to provide a trail rated version – with class-leading capability linked to advanced four-wheel-drive systems.

 

Manley goes on to say that Wrangler will remain the ultimate expression of the brand, no compromises on capability. Wrangler product reach will be extended with new derivatives and special models to respond to customer demand. 

 

Customers will begin seeing the fruits of Jeep’s product efforts at the North American International Auto Show.

 
- We're breaking for lunch,  But we'll have much more on the brands and international operations in the afternoon.

 

 

  • Fred Diaz , President and Chief Executive Officer – Dodge Ram Brand, Chrysler Group LLC and Lead Executive for U.S. Sales, details the Ram strategy. This includes creating a unique Ram brand identity, focusing on truck customers, lead the segment, expand the product portfolio, and increase sales volume and share.   Dodge DNA will always be a part of Ram essence, but the old one size fits all brand no longer works today, he says.  The new strategy will bring a sharp focus on trucks and truck lovers. 
  • Chrysler Group LLC Lead Executive for U.S. Sales, details the Ram strategy: Paolo E. Ferrero, Senior Vice President Chrysler Powertrain says the new highly fuel efficienct "Pentastar" V6 engine coming Q2 2010. And the Fiat 1.4-liter Multiair engine for the Fiat 500 in q4 2010 for North American markets.  Ram has been very busiy, with 1500, 3500, 4500 and 5500 launch.
  • Head of Engineering Scott Kunselman says the Chrysler and Fiat are moving closer to alignment on powertrains, architectures and components large and small. This will not only save time and money, but mean more fuel efficient Chrysler vehicles in the future.

 

Chairman C. Robert Kidder has opened the Chrysler Group 2010-2014 event and says Chrysler Group LLC will return to a public and profitable company. CEO Sergio Marchionne cracked a few jokes and has said the rumors of Chrysler's demise have been greatly overstated.

 

 

Ralph Gilles, President and CEO of the Dodge Car Brand is decribing an all new spirit for a refined and youthful brand, or the "inner mojo."

 

"We're going to really rethink how we create vehicles," based on personalities and not price ranges, he says.