Mismatched

Is Chrysler about to be jettisoned by Daimler-Benz? The question can be broached for the first time because the company as a whole is suffering mightily. Huge losses have a way of clarifying things.

Instead of using the best qualities of both companies individually - the design team at Chrysler and the engineering team at Benz, the whole process imploded. The company was leaning towards gas guzzlers just at a time when oil prices spikes, leaving the company awash in inventory:

"All options are on the table," said Dieter Zetsche, chairman. He declined to set a time frame for the review.

A person familiar with the matter said the options included an outright sale, spinning off Chrysler to shareholders or continuing with the recent integration between the Detroit company and the Mercedes car group. The latter is the least preferred course of action.

The restructuring marks Chrysler's third major turnround plan since Daimler-Benz bought the company in 1998.

Initial expectations of a global automotive powerhouse have given way to frustration over Chrysler's exposure to sport-utility vehicles, pick-up trucks and minivans at a time when US consumers have been moving to cars and crossover vehicles.

Chrysler also badly misjudged demand, leading to a big inventory build-up. It lost €1.1bn ($1.4bn) last year, offsetting a €2.4bn operating profit at Mercedes and a strong performance by the commercial truck group.

The car company is hemorrhaging money left and right. 13,000 jobs are to be eliminated.

Frankly, Chrysler needs to get back to basics. They know how to design really attractive cars. Their weakness - and it's a huge one - is quality. You want to win back drivers, build quality cars that people want. Sounds simple, but it means figuring out what people are looking to buy 1-3 years in advance. It means understanding that oil prices might spike and leave SUVs on the lot, but it also means that if gas prices drop, hybrids might sit because the incentives simply aren't there.