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Thursday, March 18, 2010

How Will Chrysler Survive?

According to many measures, Chrysler is building junky cars.  Today's junky cars are still miles ahead of the junky cars of decades ago, but still, Chrysler's products are not competitive.  The latest bad news comes from J.D. Power, which shows that Chrysler and its various brands are much worse than industry average for 3 years in service reliability.  

Industry Average: 155 problems (per 100 vehicles)
Chrysler: 166
Dodge:190
Jeep: 222

GM and Ford fare much better, most of their brands being above average.  Lincoln, Buick, Mercury, Ford and Cadillac score above average.

If Chrysler can't fix it's quality problems, how will it survive?  It doesn't have VW's Euro cachet or Mazda's Zoom Zoom (both well below average).  Chrysler needs to be a solid choice for the average mid-market family, or they are toast.

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