Chrysler's Fate?

By Chris Trout

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Eager to witness the brutal destruction of a pile of neglected cars, I attended the local county fair demolition derby this past weekend.  My expectations were met and exceeded as the killing blows were dealt to nearly all vehicles, most of which had entered the event hanging onto life by only a thread.  As is always true with any good demo derby, the un-muffled roar of engines filled the air blending with radiator steam, oil-burning exhaust and mud.

What I did not expect to see was an orange, reasonably straight AMC Gremlin complete with header relief in the hood, and all the other demo derby trimmings.  I always love to see an obscure piece of automotive history, but I had mixed emotions. The announcer begged it be withdrawn from the derby and restored and I couldn’t help but wonder if this little Gremlin is representative of Chrysler Corporation’s fate.

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The auto industry is a tough business by definition and any history-savvy car guy knows that this industry left many aspiring startups as well as more established brands as rusting carcasses on the side of the road.  Extinct domestic brands include Hudson, Packard, Studebaker, Nash, AMC, Delorean, Bricklyn, Plymouth, Eagle, Willys, and of late, Oldsmobile and Pontiac. With such a long lead time to develop vehicle systems and the equipment to produce them, it has always been difficult to guess what a consumer will be interested in buying years ahead of the actual product launch.  Unfortunately, this and other business concerns leave countless reputable car companies behind.  All these brands, among others, left a noticeable mark on the auto industry with unique products and devout followers.

However loyal the following, car companies cannot continue without sales and profitability.  Ever since cars have been a staple consumer product, mergers and acquisitions have been the name of the game for auto manufacturers, both to save ailing companies and increase market share.  It is in the name of merging and acquisition that many of these brands have lost their identity or gone by the wayside altogether.

American Motor Corporation (AMC) formed in the merging of brands Nash and Hudson in 1954.  Under AMC leadership, these brands eventually phased out.  AMC is remembered now as a producer of the infamous Gremlin and Pacer and some of the more knowledgeable remember Rambler or Javelin.  AMC was a strong fourth to America’s big three, Ford, GM and Chrysler, and it is sad to think that its glory is all but forgotten.  In fact, some of my most knowledgeable car friends have never even heard of AMC at all, despite such excellent products as the AMX, Scrambler, or Matador.  Chrysler acquired AMC in 1987 for the Jeep brand, and both AMC and Eagle eventually phased out under that ownership.

The only current remnant of AMC resembling its former glory is Jeep, one of the Chrysler brands. Chrysler passed in and out of the hands of Mercedes and it goes without saying they now find themselves in a rough spot.  With sales numbers at obscene lows in recent months, and heavy involvement by the Federal government in the sustaining of Chrysler, its fate has yet to be seen.

Although I am optimistic about the Fiat merger, and Lee Iacocca himself put his stamp of approval on it, I am concerned about what is in store for a once grand marquee of automotive history.  Will Chryslers be in 30 years what AMCs are for many people now?  In 2039, will people catch a glimpse of a PT Cruiser in a demolition derby, or see a 2009 Challenger in a museum and say, “Oh yeah, I remember those cars”?  I certainly hope not.  What do you think?