| The sale of the Chrysler Group has aroused | | | | |
| various reactions. There are some who thinks | | | | On the part of the local car dealers their |
| that it was the best solution like for | | | | main concern is for Cerberus to have a better |
| instance Veteran Des Moines-area Dodge dealer | | | | understanding of what their customers want. |
| Stew Hansen who thinks that the sale of the | | | | Jensen believes Daimler, renowned for its |
| Auburn Hills-based company was an absolute | | | | Mercedes-Benz brand bought Chrysler AG nine |
| necessity. | | | | years ago hoping to enter the mainstream |
| | | | American car market but unfortunately it |
| If there is that analysts and Chrysler | | | | wasn't prepared for the fierce competition |
| dealers agreed on it's the fact that the | | | | that it has to face. Jensen said, "I think |
| automaker must change quickly under its new | | | | they're tired of it." |
| owner, Cerberus Capital Management, to win | | | | |
| back customers. | | | | Hansen who is the general manager and former |
| | | | owner of Stew Hansen's Dodge City, a Dodge |
| The new owner of Chrysler Group is Cerberus | | | | and Jeep dealer said that in Germany, |
| which is a private equity company in New York | | | | manufacturers "expect to put a car out there |
| City. Cerberus has expressed its desire to | | | | and the German people just buy it because |
| revive the Chrysler Group the maker of Dodge | | | | it's a Mercedes or a Volkswagen or whatever." |
| including the Dodge Charger parts and Jeep | | | | On the other hand here in United States, |
| vehicles. It has bought the automaker from | | | | sales competition among automakers is |
| Daimler for $7.4 billion. According to Doyle | | | | aggressive, fueled by promotions, rebates, |
| Jensen, Finance Manager for Adel Chrysler | | | | and low-cost-financing. |
| Dodge Jeep, "I think we need fresh blood in | | | | |
| Chrysler." | | | | Hansen was very open about his dislike of |
| | | | Daimler's German leadership. He thinks it's |
| At present Chrysler is trying to shift its | | | | too rigid and overbearing with its relations |
| product line to smaller more fuel-efficient | | | | with Chrysler product dealers. He said, "It |
| models that carry smaller profit margins. | | | | was their way or the highway is just the way |
| Krebs said that Chrysler must lessen its | | | | it was." |
| dependence on sales of big vehicles such as | | | | |
| pickup trucks and its larger sport utility | | | | Tim Westrum, the owner of Granger Motors |
| vehicles. Krebs also added that Chrysler must | | | | stores in Granger and Perry has also given |
| learn to develop subcompacts that can compete | | | | his views on the transfer of Chrysler's |
| with the likes of Honda Fit and the Nissan | | | | ownership. He said that ownership by the |
| Versa. Krebs also thinks that Chrysler should | | | | private equity group will help promote |
| negotiate with the United Auto Workers Union | | | | long-term strategies that will strengthen the |
| for a favorable contract especially one that | | | | company. |
| would help reduce the company's health care | | | | |
| costs. | | | | But unlike Hansen, Westrum has a different |
| | | | opinion when it comes to Daimler; he said |
| Chrysler has been able to roll out 10 new | | | | that the German automaker has helped Chrysler |
| models last 2006 and will be releasing four | | | | in ways such as improved quality. He observed |
| more for this year plus an additional of four | | | | that Daimler will still own nearly 20 percent |
| new models later in the year. Currently | | | | of Chrysler, "It's not like they're washing |
| Chrysler has six vehicles that include small | | | | their hands of the company. There are some |
| sporty utility vehicles that get more than 30 | | | | good things that Daimler brings to the table |
| miles per gallon. | | | | such as engineering, product development and |
| | | | quality. |
| The concerns of local Chrysler dealers | | | | |