Chrysler to close Calif. design studio

http://www.upi.com/NewsTrack/Business/2008/03/08/chrysler_to_close_calif_design_studio/9017/

Chrysler LLC will close its auto design studio in Carlsbad, Calif., a company spokesman said.

Chrysler's impending closure of what's known as the West Coast Pacifica Design Studio is aimed at saving the automaker money, The Wall Street Journal reported Saturday.

Chrysler spokesman David Barnas said the company is consolidating its design efforts at its headquarters in Auburn Hills, Mich.

The California-based team, he said, "remains an integral part of our future design efforts" and will continue to be led by Senior Vice President Trevor Creed. (Yeah, sure like they will move to Detroit).

Chrysler's new chief executive, Robert Nardelli, reportedly is working to free up money to reinvest in the business and reduce the need for majority owner Cerberus Capital Management LP to funnel more money into the company.

The newspaper also reported Chrysler also wants to sell an engineering facility in Detroit and other properties near its Michigan headquarters.

"Increasingly, we are leveraging resources worldwide, forming new joint ventures and alliances and consolidating operations in order to better achieve global balance and manage fixed costs," Barnas said. "These moves are designed to help Chrysler become a more globally focused manufacturer, and will also enable the company to become leaner, sized for a smaller market."



This does not bode well for the rest of Chrysler.
How much money are they going to free up? Stupid suits.

the only operating capital they have is the loan the company that bought them took out at the time of the sale. they need to come out with a decent looking line and more important a well designed interior. when chevy has the second best 4cyl sedan in america and chrysler has the worse then they are not going to stay in business to much longer.

I bet within a decade they are absorbed by either one of the Japanese manufacturers for their assembly plants or by GM as a sub-division just for the Jeep franchise.

Cerberus will make money doing this. That's what vulture capital firms do.

I have to say, the newest generation of Chrysler passenger cars are pretty awful designs. Driven most of them, and they have the most godawful plastic interiors. Except for the V8s, they aren't much fun to drive. They seem to be built on a different planet from Honda and Toyota -- not a good thing.

Frankly, the latest efforts from Chrysler's design studio are nothing to boast about. The blunt-nose, boxy exteriors don't work for me -- I vastly preferred the smooth, oval shapes of the previous generation. Even the much vaunted 300 is slab sided and tank-like. Very bling-bling. The minivans are still pretty competitive in design and packaging, but are gas gobblers.