What if Toyota Bought Chrysler

Agent009 at Autospies wrote an article yesterday called “What if Toyota Bought Chrysler?”  You can read it here

The gist is pretty simple, and Agent009 points out Chrysler’s excess production capacity as a benefit for Toyota, and the fact that Chrysler’s brands are more recognized as “American” brands, which could help Toyota cultivate their American Made image. 

Chrysler would benefit, of course, by having a new sugar daddy, since Daimler-Benz is getting tired of them quickly.  Toyota certainly has the deep pockets to absorb Chrysler’s prolific losses without blinking an eye.   But could Toyota actually turn Chrysler into a profitable enterprise? 

My thinking is, no.  Toyota has exactly zero experience in turning around a failing automotive empire.  Zero.  None.  Toyota has never, in it’s history, been in serious financial straits.  Turnaround is not their game – they simply don’t get into trouble – that’s their game.  If anyone *could* turn Chrysler around, then the answer isn’t Toyota, it’s Renault.  When Renault, and Carlos Ghosn, took over the failing Nissan brand, they performed a miracle, and Nissan is a thriving company today as a result.  That being said, Renault should steer clear of Chrysler as well.

Daimler will be looking to unload Chrysler, likely this year.  To whom, I have no idea.  Someone with a deep, burning desire to fail, and lose a lot of cash in the process, probably.

Published on February 15, 2007 in Ponderings

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