Industry Report: Chrysler's Short Term Future Part III - Can Chrysler Deliver the Quality Needed to Keep New Customers Happy?

Chrysler Group Productivity and Quality to Improve by 2007

Chrysler Group made solid

DaimlerChrysler moved up significantly in J. D. Power and Associates 2004 Initial Quality Study. (Photo: Rob Rothwell, Canadian Auto Press)

productivity improvements in recent years, speeding up production time of its vehicles by eight percent in both 2002 and 2003, and by approximately four percent in 2004. The automaker has also reduced new vehicle warranty costs by 34 percent since 2001, according to Zetsche.

These facts and figures are critical if the domestic manufacturer truly plans on meeting its 2007 goal of matching the sector-leading Japanese brands in productivity and quality.

DaimlerChrysler, which also includes Mercedes-Benz, dogged by quality problems

While DaimlerChrysler has made improvements, it has a long way to go if it wants to topple Toyota as number one in the IQS. (Photo: Trevor Hofmann, Canadian Auto Press)

in recent years but having moved up in the standings significantly this year, has increased its position from 8th in 2003 to 6th place out of 14 automakers in the corporate rankings of J. D. Power and Associates 2004 Initial Quality Study (IQS).

While a notable improvement, the automaker has a long and hard road forward if it plans to match number one placed Toyota, which also includes number one nameplate Lexus, and number two Honda, whose 4th placement sits highest among entry-level brands in the nameplate ranking, its corporate ranking pulled down by Acura in an above average, albeit lackluster 15th place.