| Chrysler LLC has been having a tough time of it, | | | | Today, reports just how woeful Chrysler's operation |
| especially since the automaker was separated from | | | | is in China, suggesting that its star has now dimmed. |
| Daimler and sold to the Cerberus Capital | | | | Philip Murtaugh, who at one time was in charge of |
| Management, LP folks. Cerberus never has been all | | | | GM's operations in China but was hired away from |
| that interested in the auto industry, looking to buy | | | | the automaker fifteen months ago has left the |
| Chrysler, make some changes to it, and flip the | | | | company. In a cost cutting move, several executive |
| company. | | | | positions in China have been eliminated as the |
| But that was in Fall 2007, several months before one | | | | automaker plans to conduct most of its Chinese |
| of the worst downturns in the auto industry was to | | | | business from its Auburn Hills, Michigan headquarters. |
| hit. Little did anyone know that gas prices would | | | | cites Chrysler's inability with creating a strong |
| surge past $4 a gallon and that America's appetite | | | | partnership with a Chinese automotive make as being |
| for big, beefy vehicles would also take a hit. Chrysler | | | | one of the important reasons why the company isn't |
| had plenty of the latter, something that has | | | | succeeding in China. Chrysler is still working with |
| contributed to its worsening bottom line ever since. | | | | Daimler in China while maintaining small partnerships |
| Unlike Ford and GM who derive the bulk of their sales | | | | with Chery Automotive and Great Wall Automobile |
| from overseas operations, Chrysler relies on the | | | | Group. Chrysler and Chery had an agreement in place |
| North American market to provide 90% of their | | | | where Chery would supply a low cost car for the |
| sales. The remaining 10% comes mostly from Europe | | | | American market, but both companies canceled that |
| with a small chunk, about 20,000 vehicles a year | | | | deal in the late Fall 2008 period when Chrysler's |
| coming from China. It is that latter market where | | | | financial predicament worsened. |
| Chrysler is sales are the most disappointing as the | | | | Other efforts to forge partnerships with Chinese |
| automaker can trace its presence back to China to | | | | companies have failed, likely hastening Murtaugh's |
| the late 1970s when they opened a factory under | | | | departure. With Chrysler calling the shots on global |
| the American Motors Company a decade before | | | | operations from America, the chances of developing |
| Chrysler purchased the company. That factory was | | | | new partnerships seems to be reduced at least for |
| tasked with producing Jeep vehicles. | | | | the short term. |