Gas Prices at Record High. Chrysler Launches Muscle Car
Gas prices are at all-time, inflation-adjusted, highs. We're 60 days away from the peak driving season which means we'll start seeing the prices continue to rise during that time. There's no real sign prices will drop significantly this year.
And Chrysler's solution? A muscle-car sporting a sprightly V-8.
And boy are they excited.
"From my perspective, it's the ultimate halo vehicle," said Reid Bigland, president and chief executive of Chrysler's Canadian operations. "The attention this product gets is like nothing I've ever seen." - Chrysler Launches Challenge into an Uncertain Market. Business Week
Yessir. The ultimate halo vehicle. A muscle-car, powered by a V-8, launched during record gas prices... Sold ALL 64-hunner'd of 'em. ( Brings tears to a momma's eyes, I'm sure. How did I raise a boy like that?)
The Detroit Free Press recently described Chrysler's recent quarterly performance as follows:
Chrysler's lost share, relative to its size, was the worst performance of any major automaker.
Chrysler lost 1.5 percentage points of market share in q1, 2008, alone.
That's equivalent to your competitor's taking 45,000 cars off your lot, putting them on their lot along with the cash from their sales. Your stuck with the costs of manufacturing and overhead.
The same article in the Detroit Free Press reported:
Japanese automakers, led by Honda Motor Co. and followed by Toyota Motor Corp. -- both of which dominate lists of the nation's most fuel-efficient vehicles -- picked up the 2.3 percentage points of retail market that Detroit lost and then some.
By coincidence, I found this Honda press release from 1998: Two of Every Three Honda Vehicles Sold in US to Be a Low Emission Vehicle.
They made the decisions for 10 years to get where they are today. So did Chrysler.


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