NAIAS Report: Ford and Chrysler

The 2010 North American International Auto Show was a watershed moment in time for Ford. Riding high on American pride and optimism, the one major American manufacturer that didn't need a bailout or bankruptcy protection in '09 started the show in Detroit by sweeping the North American Car and Truck of the Year awards. The 2010 Ford Fusion Hybrid beat out the VW Golf Mk6 and Buick LaCrosse for the car award, while the 2010 Ford Transit Connect compact commercial van beat the Chevrolet Equinox and Subaru Outback in the truck category. It was only the third time in the award's history that a single manufacturer has taken both honors. To note, Honda did so in 2006 with the Civic and Ridgeline and GM did it in 2007 with the Saturn Aura and Chevy Silverado.

One look at Ford's massive, enclosed display said it all. The thing bathed the showgoer in a softly glowing shade of Ford pride blue. Henry's surname was to be found on every wall, in every corner of what looked like you had entered into a totally different, if not entirely well-organized, building. Ford's display was by far the most impressive among all the manufacturers and it exuded confidence.

Taking the "Crisis" Out of "Chrysler" (Part 2 of 2)

Chrysler has been drowning. It's not a big secret.

In 1999 - the first full year they were part of DaimlerChrysler - 2.6 million Chryslers, Dodges, Jeeps, and Plymouths were sold in America. For 2009, they may sell 900,000. If they're lucky. In the last 3 years alone, sales have dropped a staggering 58%.

As has been discussed before, this cliff dive is due to a variety of factors. The biggest among them is that, with few exceptions, their current product line is woefully behind the competition in nearly every measurable way. Quality isn't there. Reliability has been at the bottom of the barrel. Design execution has been subpar. Fuel economy is no great shakes. And for the 4 months between their emergence from a quick-rinse bankruptcy, and last month's release of their "5-year plan", they hadn't spent money to advertise their rag-tag group of misfits.

All the while, reports of angry, jettisoned dealers and Obama officials admitting shock at how far-gone Chrysler was when they stepped in has filled the void in airtime and column inches that their advertising would have otherwise occupied.

The rank ineptitude of the Daimler management at Chrysler was hugely responsible for the bad product decisions that pushed Chrysler to the brink. And when Cerberus took the company over in 2007, they brought in their own group of incompetent managers that only cut employees, plants, future vehicle development, and other costs to the bone.

So, since the year began, the bankruptcy court has decoupled Chrysler from Cerberus. The Feds have thrown them a multi-billion dollar life preserver. And Fiat has pulled America's third-biggest car company, floating listless in a heavy sea of fierce competition, aboard its own recently-mended ship.

CEO Sergio Marchionne's plans are certainly ambitious. He has acted fast, ending engineering alliances with Renault-Nissan, Mitsubishi, and Hyundai, and starting Chrysler on a path of better integration with Fiat AG.

But will the company once known as "Fix It Again, Tony" be any better for Chrysler than Daimler was? In a word: Yes.