Summary
Germany's DCX, which calls the shots at the Chrysler Group in Auburn Hills, Michigan, USA, all the way from Stuttgart, BRD, does not now, and never did, give a hoot for Detroit, Michigan, or American opinion.
The German styled "partnership of equals," which never existed has now collapsed.
The Chrysler Group makes large powerful cars that no one buys,
It also makes bland medium size cars that no one buys, and
It makes dull small cars that look designed to go directly to rental fleets.
Only Mercedes designers could find it strange that they cannot design cars to be purchased and driven by people who cannot afford (or increasingly don't want) Mercedes vehicles.
Their is a future for a small car maker with low overhead in America.
Perhaps it may be China's Chery, which could use Chrysler's dealer net, and some few Chrysler designers and marketing people.
Analysis
I think that the attractive Chrysler Group HQ complex in Auburn Hills, Michigan, is on its way to becoming the Wu Jintao College of Automobile Knowledge for China's Chery Automotive.
The so-called DCX, DaimlerChrysler Group, resisted merging the quality and design, to say nothing of sales and marketing, functions of the two original partners so long that it is now too late to do anything but point fingers.
The most disingenuous claim from the German masters of Detroit's Chrysler Group is that the German parent spent so much time "fixing' Chrysler that Mercedes quality suffered. It was Mercedes itself that was so overwhelmed by options and gadgetry that it finally imploded and produced flawed cars on both sides of the Atlantic.
There is no common product line between the two "partners," and Chrysler's new product cupboard is looking bare. The Mercedes A-Class Smart car is a good idea, but it is too expensive and not at all tuned for the American market, where a Chrysler themed Smart(er) Car would have been a very good idea.
So, DCX has turned in desperation to China and has taken a page from Ford's playbook. DCX will look over the shoulders of the designers at Chery as they produce a small sedan that will sell cheaply in the USA against the offerings of the Japanese (Honda and Toyota) in this category.
The new Chinese (smart) car will be designed engineered and built in China with no need for the UAW or American parts makers to be involved. Chery, the Chinese "partner," will not need to set up a dealer network or a parts and service warehousing and distribution scheme.
Chery will thus have stolen a march on its main rivals for the (Chinese) export market, SAIC, and FAW. Interestingly enough, Ford is shopping for such a partner and can't seem to find one. I don't think GM will go this route at all.
If the Chery cars are decent and the distribution plan works look for Chery to tell DCX that it will take over Chrysler if the price is right. Since the price will be anything that gets Daimler out from under the horrendously wrong Chrysler deal I suspect that the deal will be made.
Toyota and Honda and Nissan watch out!
