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Chrysler needs to, at a minimum, revise its dealer control processes to avoid future legal issues. Following Ford's lead, it needs to require proof of disclosure from dealers in exchange for turnover of the automobile's title. Chrysler might also consider alternatives to recycling the cars which have been returned to buyers. Lemons are often returned because they can't be fixed, so recycling of the lemon's it not the type of customer-centric practice required to succeed in today's competitive automotive market. Instead of recycling to buyers, Chrysler could receive tax deductions from charitable donations of the vehicles or recycle the parts.
Chrysler also needs to resolve the current issue and future one's in a more appropriate way. In addition to damage to its reputation, brand name and profitability, Chrysler faces the additional burden of damages awarded to buyers, liability in accidents involving the vehicles and court costs. For all these reasons, Chrysler needs to take responsibility for the situation and future ones instead of denying ownership of the problem. In this case and future ones, Chrysler needs to notify all individuals who do not necessarily have proof of disclosure from the dealers. Chrysler ought to attempt to resolve the problem by allowing direct return of the car to the company rather than relying on dealers to accept returns. Owners should receive fair market value for their cars without consideration of known defects.
Chrysler needs to revise its public relations and legal processes. Rather than trying to hide information, it should voluntarily engage in immediate and full disclosure of all internal documentation and knowledge of the issue. Even if Chrysler had been innocent in this situation, its conduct makes the company appear guilty. Losing trust with the consumer is not a position an automotive manufacturer wants to be in.
Works Cited
Lundegaard, Karen. "Chrysler Fixed, Resold Lemons, According to Internal Documents," the Wall Street Journal, March 19, 2001, p A4.
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