Chrysler may be the worst off of all the big three–not only were they smaller going in than GM, and both were much worse off financially than Ford, but Chrysler is the one you don’t hear from.
But now, some fresh news has emerged that should surprise some people–Chrysler’s Dodge brand is now essentially two businesses in one. Both divisions are overseen by their own CEO, but one branch will focus exclusively on cars, the other on trucks.
On the surface this seems like a good idea. Specialization allows a company to take advantage of economies of scale, though I’m not sure how good an idea it was to hire TWO CEOs, considering how big a drain on resources a chief executive officer can be. Of course, as long as the board of directors keeps executive pay at an even keel, this may not be too bad a move. Get the economies of scale without the huge CEO pay package? I’ve heard worse myself, and from Fiat, that’s especially surprisingly lucid.
Tags: brand, brand split, Chrysler, Dodge, Fiat