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Automotive Industry

Daimlerchrysler Forming New Small Car Strategy - Brief Article

Automotive Industries, July, 2000 by Lindsay Brooke

With DaimlerChrysler taking a stake in Japan's ailing Mitsubishi Motors recently, the German-American automaker is reshuffling its small car deck, deciding which existing platforms and models from all three brands will be kept, discarded or possibly merged, says Senior Vice-President of Design John Herlitz.

"The small car strategy is the biggest thing we're sorting out right now," Herlitz tells Al. "Chrysler versus Mercedes versus Mitsubishi -- everything's being looked at very closely."

Industry analysts and DC insiders say the models under the most scrutiny include the next generation Mercedes A-Class, the Smart, which is made by a DC division, and the Neon. The automaker is said to have been redesigning the A-Class for possible North American certification prior to the Mitsubishi deal.

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And it has appointed one of its rising-star executives, Andreas Renschler, to head a small team exploring limited U.S. sales for the Smart, a tiny city car that can fit within an A-Class's shadow with room to spare. Renschler earned fame as the man who launched Mercedes' Alabama assembly complex.

Herlitz, 56, who recently went on "special assignment" leading up to his official retirement this coming January, indicates that the Chrysler Java, a stylish B-class concept introduced at the last Geneva show and aimed at the European market, is dead. "We're checking out what Mitsubishi can provide in terms of platforms," he explains.

The passing of Herlitz's pen after a 33-year career with the automaker puts all eyes on 56-year old Executive VP of Product Development and Design, Tom Gale, who began his career at Chrysler the same year as Herlitz. Gale's own retirement has been speculated since the Daimler-Benz takeover in 1998.

"Don't worry, we'll be in great hands," says Herlitz assuringly. "Trevor Creed (another Chrysler veteran and interior design ace) will take over my position. Freeman Thomas and many others are all true car lovers and exceptional designers. I've got so much faith in all of them."

Automotive Industry

Daimlerchrysler Forming New Small Car Strategy - Brief Article

Automotive Industries, July, 2000 by Lindsay Brooke

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