Chrysler AnalysisS.WOTProblem: How can Chrysler return to the prosperity it once achieved and convince consumers to buy their vehicles again? Strengths - New ownership Cerberus allows Chrysler to make faster decisions because they are a private company. - Have a goal of giving a return to their investors. - Have successful divisions in Dodge and Jeep. - At Chrysler, l The emphasis is now on working quickly. - They realize there is a major problem with the company and are doing everything they can to fix it. - We now have a new design studio interior that was used on the 2009 Dodge Ram.- Let's start studying customer preferences from the beginning to limit changes in the design cycle.- Collaborated with Tata Motors Limited of India. Their all-electric Ace mini-truck will be sold through Chrysler's Global Electric Motorcars division. - Private ownership means they do not meet the statutory requirements of a public company. Weaknesses - Poor relationships with dealers, suppliers and the American consumer. - CEO Bob Nardelli has very little experience in the automotive industry. -Chrysler has operational problems and high operational problems. costs. - Last year they stopped production of the Neon (their best known small car). - They are behind in R&D and have announced that they will introduce an electric vehicle in three to five years, whereas most of their competitors would have them sooner.- Being a private company makes it harder to access capital markets to get money. - In the past, they built vehicles that dealers didn't want, didn't order, and couldn't sell, resulting in a tedious mess that had to be cleaned up. - After 8 years of foreign ownership, Chrysler was stripped of traditional corporate functions, including human, legal and financial resources, all of which were managed from Germany. Opportunities – The demand for small cars is growing rapidly. - Consumers are beginning to show interest in purchasing alternative fuel sources. - China's Cherry Automobile Co. is developing a subcompact car that Chrysler plans to sell under its brand. - Foreign automakers looking to increase their presence in the United States are buying valuable parts from Chrysler. Threats - The U.S. economy is struggling and consumers are not spending as much money as before. - Sales of trucks, pickup trucks and minivans are declining rapidly , as consumers tend to purchase more fuel-efficient vehicles. - Oil and gas are expensive and prices continue to rise. .- People want smaller cars and Chrysler is not known for making them.- Chrysler does not have significant international operations.