Chrysler, Mercedes will strengthen ties, Zetsche says; success of 300 cited
MARY CONNELLY | Automotive News
Posted Date: 12/16/04



DETROIT -- Chrysler group CEO Dieter Zetsche points to the success of the Chrysler 300 as reason to strengthen ties with Mercedes-Benz.

The 2005 sedan exemplifies a product strategy Zetsche says he will rely on to turn the Chrysler group into the industry's product leader within three years.

Zetsche's plan calls for sharing engineering resources with Mercedes-Benz. Chrysler group vehicles will share commodity-type parts with Mercedes but not major components visible to the customer, he says.

"The 300 never could have performed the way it does if we would have had to do that all as a stand-alone unit," he says. "At the same time, the 300 was engineered, developed entirely from our engineers here, just in close interaction and communication with the guys on the other side of the ocean."

Through November, sales of the 300 totaled 99,405 units, a 323.6 percent increase over sales of the model's predecessor in the year-ago period.

Chrysler brand sales increased 25.6 percent through November to 528,696 units.

The Chrysler group is ready to attack competitors, Zetsche says.

"Our turnaround plan was to enable ourselves to become kind of the fastest of the prey, to survive the attack," he says. "We think we accomplished that. Our objective looking forward is to become a predator."

The rear-wheel-drive 300 and Dodge Magnum share about 20 percent of their parts, by value, with the Mercedes-Benz C class and E class. Parts include the front-seat frames and steering columns.

The design for the rear suspension was adapted from the E class. But elements such as the spring and shock settings are unique to the Chrysler and Dodge brands. "The know-how of the E-class suspension has gone into the 300 suspension," Zetsche says. "But it is the 300 suspension, which you cannot use in the E class."

Zetsche says he will merge the technological prowess of Mercedes-Benz with the creative vehicle packaging and design talent of the Chrysler group.

"We have excellent history and capabilities in Auburn Hills (Mich.), especially on the styling, packaging, creative side of the business," he says. "At the same time, as far as disciplined execution and technology is concerned, we have an excellent track record in Stuttgart."

Brand identities will be protected, Zetsche says.

"Generally, it is about common parts to get economy of scale," he says. "Those are parts which nobody knows about their existence, with no impact on brand recognition whatsoever."

Adds Zetsche: "It is not about saying we take the components of the E class and wrap it up in a Chrysler envelope and now you get a cheap Mercedes."

Autoweek.com

redriderbob