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