When DaimlerChrysler’s Chrysler Group announces its restructuring plan tomorrow, and with it comes the expectation that there will be an increase in parts sharing between Mercedes-Benz and Chrysler. And there are many on the Mercedes side that aren’t too happy about it.

Chrysler’s restructuring, which will be revealed tomorrow, is said to include plans for next-generation SUV platform that will underpin both the Mercedes M-Class and Jeep Grand Cherokee. The same plans are on the table for the next-generation Mercedes A-Class, the Dodge Caliber and Chrysler PT Cruiser.

Mercedes purists fear sales and margins would suffer if buyers could get basically the same car in a sister brand for less money, but just about every other automaker in the global auto industry does the same thing, even Porsche — at least for one vehicle. The most obvious exception is BMW.

Just look at Toyota/Lexus for proof that it works. It isn’t a common architecture, components or platforms that can destroy a brand, its poor product development and execution. Just look at Ford’s problem child Jaguar — specifically the S-Type and X-Type.

Chrysler isn’t going anywhere, despite the calls for a Chrysler spinoff from its parent. Mercedes is going to have to get used to sharing.

## Source: The Detroit News ##

Posted in: Chrysler, Mercedes-Benz, Manufacturing, DaimlerChrysler, Business, News, Financial
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