The Chrysler Realignment

Posted on July 31st, 2008 by Luis

Chrysler is looking to make some major changes. The Wall Street Journal reports that Chrysler is currently scrambling to cut costs by forming alliances with companies across the globe. In India, they are in talks with Tata to build Jeeps. The struggling car maker is also in talks with Fiat about a possible factory lease deal. All this is in addition to down-sizing their workforce. In the U.S. Chrysler sales have fallen by 22% so far this year.

There is some good news for the company. Chrysler, GM and Nissan were ranked as some of the most visible auto makers online. Internet research company iCrossing did a study on the paid and natural search visibility of automakers. There’s obviously a disconnect between online viability and the conversion rate of new purchases. Chrysler can bounce back, but the problem goes beyond operation and marketing. Product tastes are changing, due to gas prices amongst other things. The entire automotive industry is in a state of realignment.