DaimlerChrysler Warns Dealers About PT Cruiser Supply

D E T R O I T, Nov. 16 -- DaimlerChrysler AG has warned its dealers that itcan’t build enough 2001 Chrysler PT Cruisers to meet all the orders customers have made.

An undetermined number of people who have ordered one of theretro-styled hatchbacks — some of whom paid hundreds of dollars asa deposit — might have to wait until the middle of next year to getone and pay next year’s prices.

Difficult Road Ahead?The automaker’s inability to keep up with demand for PT Cruiserscould damage relations with buyers Chrysler was hoping would berepeat customers in years to come. It also could mar what has beenits one unqualified success in a year of turbulence.

After two years of trying to make its trans-Atlantic merger work, DaimlerChrysler is still two companies divided byan ocean of troubles. With Chrysler president Jim Holden due to be replaced withcommercial vehicle director Dieter Zetsche on Friday (see sidebar below), the vaunted merger of equals enters another time of doubt.

U.S. workers areuncertain what the new regime will bring, with distrust stirred bystatements from DaimlerChrysler’s chairman that he never intended amerger of equals. And, Chrysler’s performance hasn’t metDaimlerChrysler’s expectations.

Issuing the WarningDaimlerChrysler warned dealers of the shortfall in a memo sentearlier this month, saying it would tell dealers by Dec. 1 how many2001 PT Cruisers they would get through summer of 2001 “to assistwith managing customer expectations.” The memo said customerswhose orders are not built before then would be charged whateverprice the 2002 model carries.

The PT Cruiser factory in Toluca, Mexico, will build about120,000 PT Cruisers this model year, with 20,000 slated for exportto foreign markets. In August, DaimlerChrysler said it already had100,000 orders.

The company also has ordered hundreds of U.S. executives leasingPT Cruisers under a corporate plan to give them up for sale todealers as slightly used “program cars,” and barred executivesfrom leasing new PT Cruisers.