Chrysler Admits Faults, Unveils New Plan

If you wanted to see a group of executives perform a public mea cupla, I wish you could have sat next to me today for Chrysler's new business plan meeting in Auburn Hills, Michigan.

The belabored automaker, recently out of bankruptcy and now owned in part by Italy's Fiat, admitted faults and promised the future would be different.

The company's head of quality, Doug Betts, explained that problems were systemic.

"When I arrived at Chrysler, there was no definition of quality," Betts said. In one startling example, Betts detailed a period where customer-reported vehicle problems went unresolved. The problems weren't acted on, with Betts saying that the company "did nothing for 71 days." Chrysler promised that a new quality system would ensure those problems don't happen.

What's Changing

Key to Chrysler's plan will be a close sharing arrangement with its new shareholders, Fiat Group (Fiat owns 20% of Chrysler Group LLC now but could have as much as 51% in a few years). A few popular models will be lost in the transition, but many new models will arrive over the next five years.

Dodge
Dodge is splitting its car and truck groups, creating a new "Ram brand" which will focus only on trucks. All Rams will still feature Dodge branding, but those emblems will be downplayed. Ram Brand CEO Fred Diaz told AOL Autos that when customers were asked about what the Dodge brand meant to them, they nearly always responded by mentioning the trucks.

"Dodge was trying to be all things to all people," Diaz said. Now, he said, the cars can grow on their own and the trucks can get unique Ram branding. All dealerships will sell Ram trucks.

In addition to this split, expect the following:

Going Away:
- Dodge Viper: Gone in the summer of 2010, while company officials say a return in 2012 is under consideration
- Dodge Caliber: Dead in 2012, but a vehicle of a similar segment is set to arrive around the same time
- Dodge Dakota: Wound down in 2011, but a new mid-size truck using a unibody construction will arrive around the same time

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