The Top 5 Best Things That Came Out of the Chrysler - Mercedes Merger
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- Опубликовано: 13 июн 2024
- In today’s video we are focusing on the DaimlerChrysler merger, specifically looking at some of the best products that came from Chrysler and Mercedes, typically using their synergy and combining resources to make products! The merger may have been a failure in the end, but even failed marriages can produce beautiful offspring. So, let’s look at some of the combined efforts of the two companies.
The Merger - Extra Information
In the mid-1990s, Chrysler was close to bankruptcy. Chrysler’s advisers saw a need for the company to merge with another automobile maker in order to survive in the competitive car industry. Automobile analysts at the time were expecting that only 10 out of the 30 car makers could survive in the global market. Chrysler brought some benefits to the table - they had high profitability that was achieved by low research and development expenses and a well-aged product portfolio with many popular and well-established models. Daimler-Benz had the cash to keep Chrysler alive, wanted to reduce their R&D costs, and liked the prospective synergies and market capitalization. Projected sales were 4 million cars in 1999, with expected cost savings $1.4B immediately in the first year, and $3.5B per year within 2 to 3 years.
The shares exchanged were valued at $38B US, the world’s largest cross-border deal at the time. The merger was dubbed “a merger of equals”, creating a company with more than 440,000 employees, a market capitalization of $92 billion and annual revenues of about $130 billion. There were issues of contention, like whether the merger actually delivered synergies and successfully integrated the two businesses, and whether this was actually a merger of equals and not just a takeover for Daimler-Benz to take advantage of Chrysler.
In the end, things just didn’t work out. The German and American corporate styles and attitudes were constantly clashing, and in the end Daimler was more controlling with Chrysler forced to do as they were told. Things went belly up in 2007, with Daimler selling 80.1% of Chrysler Group to American private equity firm Cerberus Capital Management on May 14, 2007.
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Daimler took Chryslers money, gave them some old technology and got out leaving Chrysler in worse shape.
Yeah they never gave them much, never wanted to be associated with them, gave them older platforms, etc. Clearly they just wanted money and resources for themselves
The advanced LH Platform looks like an aircraft design when you work on it, and you can work on it. Daimler replaced a feet Renault-inspired FWD chassis w obsolete RWD Mercedes buck-boards that needed complex dynamic computing to match
They may not have been the most reliable but Mercedes made mopars look sick! Especially the crossfire, with challenger mirrors 😅
I always loved the look of the Crossfire too! But I do hear a lot of people say they don’t like the stakes in the hood haha
A friend of mine just bought a crossfire w/ 80k on it. 6 spd manual too. Pretty cool car, but not good if you are tall. I'm 6'2" and my knees were in the dash on the passenger side.
I own a C32 AMG and the M112K pulls immensely hard in the 3450lbs chassis, so I can only imagine the fun one could have with the same engine in a 3000lbs chassis
Awesome video as always!
Thanks for watching! Cool to hear about your C32 AMG. Nice cars for sure 👍🏼
The LX platform is the best thing to come out of this merger
Agreed they are still producing those cars today what a good business move that was 😂
If you exclude the fact that mopar had a rwd platform that was close to production but had that yanked away and was forced with a crappy old Mercedes frame. Hence the weight of these cars
I've never known the LX platform vehicles share most parts with Mercedes Benz.
I would also add in the WK2 Grand Cherokee and WD Durango, I think both SUV’s have been good sellers for Chrysler.
I liked the Crossfire, LX/LD platform, and even the OG Pacifica, introduction to the Pentastar V6, and Introduction of SRT4. I did wish that DiamlerChrysler made the Chrysler ME412 and Firepower.
Great vid. But I remember Mercedes’ was criticized by Top Gear for its cheap build quality and right after the Merger of Equals we saw Mercedes take over Chryslers manufacturing & engineers. Also a lot of Chryslers US offices , warehouses ect. closed down after the merger ended.
Exactly. Mercedes gutted chrysler's hard assets and engineers. Specifically the electrical side of mopar
I agree. In my longer merger video I will certainly talk about how Mercedes took advantage of Chrysler. Was their plan all along, after all they bought the company, nothing equal about that
@@MarspeedCars having worked for Chrysler since 1994, the initial enthusiasm quickly wore off.
its funny you say "daimler was brought in to help support financially, Chrysler" when long before the 'merger' was done, daimler had looted $9 BILLION from Chrysler. Chrysler sales propped up daimler's european operations.
then Fiat was kept alive by the Chrysler part of FCA organization because of Fiat's crappy performance in europe.
NOW, Chrysler group is supporting Stallantis in their crappy auto market in europe.
i personally dont like SUVs or CUVs nor do i have a need for a big truck. i like my caliber (sort of. mostly because of the fuel economy) so id LOVE to pick up a peugot station wagon. but..... Stellantis has NO PLANS to send cars this way, just siphon money THEIR way...
I was a Mopar mechanic when the Pacifica entered our lives. It seemed to me that the Pacifica wanted to be a wagon, SUV, minivan and luxury car all at the same time. I determined it was a confused vehicle. Normal maintenance jobs were tedious or a complete pain in the a$$. Transmission removal required separating the engine/trans cradle assembly from the body to get the trans on the bench...... dumb design.🤷 The 3.5 was not enough. This confused car was a slug. After resetting the oil change interval to 3000 miles you would move the car 4 feet and the interval dropped to 2999 miles. 🤷 Other than that I liked it 😂😂
The Pacifica did want to be all of those things. As such, perhaps it was ahead of its time as a "crossover." Today, the sedan is on the brink of extinction, and similarly confused crossovers are everywhere.
There’s this 2006 srt8 119k miles 14k$ I’m trying too buy any thing u can tell
Me about it ?
Good video...i think the 02 Ram and the re introduction of the 5.7 Hemi played a part of their epic comeback
It's like my grandfather said after his sisters had come to visit him once: "I'm glad they came; and I'm glad they're gone."
Smart man
Worst thing Daimler did during the merger was discontinuing the Plymouth brand when Chrysler was in the middle of reinventing the Plymouth with the Prowler, Pronto, Pronto Cruiser and Pronto Spyder. 😢
Horrible mistake of a merger (takeover) ....Chrysler was finally on top of the world with great products and as Iacocca said, Chrysler had the resources to buy Mercedes instead of what happened and that would have been a better scenario. Also, I hated the fact that they killed the Pentastar, one of my all time favorite logos and a great mascot for Chrysler.
This was really great! I look forward to the next video.
Very informative. Thanks.
Great video. I liked it better when Chrysler as an independent company.
Keep up the awesome content 👍
Thanks for watching!
MOPAR's biggest problem, even to this day, is its dealers. Having owned many, many, MOPARs, the worst part of it is having to go to a CDJR dealer to buy one. Good thing so many MOPAR forums are available. You can save a ton of $$$ utilizing a model specific online forum and cutout the typical local dealer network.
I agree!
I think that dealers are the bane of most auto manufacturers.
I agree as well, not too many good experiences to be had at the dealerships! Pay low salaries to people that don’t care about their jobs too much and its a recipe for disaster
@@MikeV8652My local GM dealer was a pleasure to deal with while my local Toyota dealer was a nightmare. Can't speak for other dealers though.
Great work Sir thank you
Marspeed bro thank you seriously you’re the best
This is very interesting and I've found out about the merger on RUclips actually and I'm still shocked that the parts from FCA/Stallantis have interchangeable parts from Mercedes.
Yeah kinda of shocking when you think about it!
Fabulous as always, I look forward to your postings. I own a New Zealand new SRT 8 6.1 RHD 2008 and my daily driver and fabulously reliable and excellent. I have wondered for a little while, mine being assembled in Austria by Magna Styr, if the Challenger was assembled also RHD in Austria, have any Challengers from this period of Daimler Chrysler Partnership, were assembled RHD somewhere. Thank you. Being the same platform.....
I owned a 2005 Crossfire Limited Convertible. It was a pretty cool car. Turned heads everywhere I went. It never let me down. If it would have had the manual transmission, I probably would have kept it. I traded it for a 2010 Camaro SS with the 6-speed.
Yeah they are so damn cool. Decent performance, nice looks, solid interior, seemingly decent reliability.
The LX / LC / LD maybe outdated time wise, but still great platforms, that carry amazing cars .
People seem to have the preconceived idea that just because something is old, it's not good.
@@7s29 On the contrary, if something's been around for years and years and years, they much be doing something right.
My high school girlfriend's dad bought a used Crossfire SRT6 and loved it. Sold his 2000 F150 to buy it after they retired, as the truck was worth more despite being worn out. Afaik, he still owns and drives it. Impressive reliability imo.
Some nice SRT cars came out of that merger. Like my 2007 SRT8 Charger Super Bee and the SRT6 Crossfire. I got to drive an SRT6 at BeaveRun Raceway Park in an SRT Track Experience in the mid 2000's. Always liked those!
The PT Cruiser GT also had the SRT4 engine, fabulous vehicle!
You didn’t mention the 2011 and up Durango and Grand Cherokee as some of the best offspring to come about.
Did did briefly mention the 2011 Grand Cherokee entry for the 2009 NA Autoshow.
Pugoet is about to give Chrysler 12 more inches!!
It’s gonna be worse then Daimler!
There was also some interesting things going on with service parts at the time. When I cracked the windshield on my ‘99 SL500 sometime around 2004 or so, the replacement glass (from the MB dealer) had a Pentastar on it.
You wanna piss off the German engineers, tell them that their precious T class looks like a Pacifica. They don’t like that. Also I’m surprised you missed the Jeep Grand Cherokee. It was a lightly redesigned Mercedes ML/GLE 166 platform which was a very good chassis and is why the grand Cherokee won so many awards. At least in my opinion.
Actually, the other way around. The WK2 platform was developed under Jeep/Chrysler guidance during the merger but Mercedes got a revised version of that platform, the W166. Mercedes was aware of Jeep’s ability to design capable off-road unibody vehicles.
@@jamesaandf You may well be correct. I’m not 100% certain that I’m correct. I just remember when Mercedes and Chrysler split up they both needed something that the other had and so during the divorce proceedings they made a trade. Mercedes gave Chrysler the 166 chassis that Chrysler so desperately needed to make a high quality volume selling SUV out of that could be stretched to fit many different roles. In return Chrysler gave Mercedes what was going to be the new Viper chassis that later became the SLS. When I was in Stuttgart talking to some of the higher ups in a big convention/meeting back in 2010 they did not deny that this is exactly what happened. Devils advocate, they didn’t confirm it either but I got the distinct impression that I was getting at something if maybe not the whole truth. Regardless the 166 was a damn good SUV in my opinion and the Jeep Grand Cherokee and Durango and whatnot are as well. If the SLS isn’t based off a Viper it sure as hell has some Viper personality and design cues. Engine bay for days, small rear cabin, brutally fast, tire smoke on command, great fun to drive, etc etc etc. But also not nearly as refined as any of its contemporaries or the GT that replaced it.
You should do a series on the Shelby/Dodge collaboration of the 80s. Not many people know of the GLHS, the first V8 midsize Dakota, the skunkworks CSX-T Thrifty Rental car, or the effect Carroll had on the Viper project.
My dream Mopars aren't hellcats or anything modern. They are a 1987 Shelby Charger with the white on red exterior and a 1989 Shelby Dakota with the black on white exterior and red interior. Beautiful cars that are increasingly expensive and difficult find.
I need them to make a reliable engine like the did with the old Mercedes
The best thing happened is my dream car 2006 charger SRT8
That SRT8 is a classic
The Chargers now look sooooooooooooooooo much better though. Or at least they do imo. I'm not saying the mid 2000s chargers are bad cars, they just look bloated to me
@@jebediahgentry7029 That’s actually one of the reasons I like them. These are full sized sedans with spacious interiors. Ironically, the new ones weigh just as much as the old ones.
This is actually really cool, I do love German vehicles and have owned many but the reliability was what always got me. When I sat in a 2006 chrysler 300c I immediately saw the mercedes parts. To me I really like that bc I love German vehicles, and of course the chrysler being way more reliable especially with the hemi v8 its definitely the perfect choice. Even the style of the 300c definitely reminds me of bentley or rolls royce in the front, its a beautifully designed vehicle. Thinking of getting on down the road!
@6:25 The best thing that came out of the Chrysler - Mercedes Merger in my opinion is, the relocation of the battery to the trunk.
I have the LH platform Chrysler 300M special and it's a nightmare to get to and change the battery in those cars.
I have a 2001 300m and it's not that hard
@@Welcometofacsistube I do not like that Chrysler put the battery under the passenger side wheel well🤬
They could have put the battery where everyone else were putting it, under the hood near the front of the car.😒
@@damilolaakanni Due to the cad-forward design, there's not enough space to put the battery under the hood.
Even in the trunk it’s annoying, so I can’t imagine in the LH cars!! I always have stuff in my trunk so getting access to the battery has been frustrating for me 😅
Don't forget the dodge sprinter van
You should do separate videos on Chrysler's history of financial troubles that made them near bankruptcy.
Love my Crossfire
The LX platform was not a Mercedes platform. The LX, while it may have similarities and common components with MB, you won’t find the LX under any MB vehicle. The wheelbase as well as track widths are different, larger on the LX. Lots of MB components, mostly gone now, but components are not platforms.The LX may have design elements and shared components with MB, but the platform was new.
Yeah that’s almost exactly what I said in the video at some points. Never said they shared that platform or MB used it, but rather that dodge derived it from
Ideas and parts that were from MB.
LX platform has a wheelbase of 120.XX inches to the W211s 112.XX inches. A 112” wheelbase is almost in the compact car class while a 120” wheelbase is in the large car class. I think it’s a stretch to say the LX platform was basically a W211 platform. I would suggest the LX platform was derived from the LH platform with the constraints that the new LX would use some MB components. The LH from the start was designed to accept RWD.
He didn't exactly say it is on the exact same mercedes platform but its based on it. Of course its a bit different for chrysler vehicles but the overall platform is based on the mercedes vehicles he mentioned.
Did the hemi and Grand Cherokee platforms have heavy MB influence?
Yes. In 2011 the GC was built on the previous gen ML platform. As far as the Hemi, lots of people won’t admit it, but I swear the architecture is very, very close to the early 2000’s Merc V6/V8 engine. Their V6 is simply their V8 with two less cylinders. Although the Mercs use OHCs,and the Hemi uses pushrods/cam-in-block, the coil on plug appears almost identical, some of the sensors and their locations appear the same, and one other doozy. That Merc engine platform and the Hemi are the only modern engines with two spark plugs per cylinder. The story is that Chrysler insisted that they have a new V8 that would tick all the boxes for the average American V8 enthusiast, use the Hemi name for real deal nostalgia, employ the general combustion chamber shape for power and efficiency, but most importantly and the buggiest object of contention between the Germans and the Americans was the use of the conventional pushrod V8 as opposed to the over head cam V8, which would seem as “exotic” or “foreign” to Americans, as witnessed by Chrysler’s OHC 4.7 V8, which was a great engine but complicated and not quite as reliable, and did not have the name recognition of the Hemi. I own two vehicles with remarkably similar engines, the Hemi, and a Mercedes ML320, with the V6 I mentioned before, and have done plenty of maintenance on both, and when I went put new coils and spark plugs on the Merc, I realized I needed 12 spark plugs on a V6! Mind blown! Funny, I needed 16 on my Hemi V8. Hmmmmmm. Not a complete coincidence. What other modern engines do this? None. Was it ever a common thing? No. Does it work to help better combustion charge burn for power, efficiency, and reduced emissions? Yes, yes, and yes.
Don't remember but did dealerships at the time also have to sell Mercedes next to Dodge vehicles
No
No they were still operating separately.
Despite being a failure, there were some good cars from the DaimlerChrysler era. Just because DaimlerChrysler failed, doesn’t mean they cannot produce any good cars.
I’m curious to know how the merger with PSA is really going.
The future is straight 6 turbos or electric...it looks bad
At first I thought it was a a great idea and a way ahead for Chrysler but it just seemed MB just wanted to give “hand me downs’ to Chrysler and they weren’t really in it for the right reasons or the long haul jmho 🤷🏻♂️
I feel like the FCA and PSA Groupe merger will be a mistake.
i think it was a good merger, maybe not great, but good. if i understand it all, the newer multi gear auto transmissions came from Daimler, i think. that was a great plus right there. hopefully, chrysler will get the new solid state batttery, when they come out, so six dollar a gallon gas wont be a huge issue anymore.
Chrysler is no longer part of Diamler. It is now Stellantis which is a merger of Fiat, Peugot and what was Chrysler.
The newer ZF 8 speeds are German (not sure if made by Daimler). The merger can be seen as good as in it probably saved Chrysler’s ass and preserved the existence of the company, but I don’t feel Mercedes treated Chrysler right and saw this as a long term feasible deal. They left them bankrupt in the end anyways
@@MarspeedCars ZF supplies transmissions for several euro car companies, i think. i worked at a MBZ dealer here, and thats just the way germans do business. if its good for you, then its gotta be great for them.
@@MarspeedCars The 8-speed automatics are from ZF of Germany... some built under license in Chrysler US plants. ZF is a long time supplier of ATs to BMW, Audi, and many lower volume European automakers. Daimler develops and manufactures its own RWD automatics: 5-speeds 20+ years ago, 7-speeds more than a decade ago, and most recently 9-speeds... a design they have licensed to Nissan. Daimler has no involvement in current ZF automatic transmissions.
@@josephkramer932 and 16 other inconsequential auto makers from europe
They did some good, but they definitely got carried away when it came to controlling things
My Dodge Sprinter was just badge slap with a Dodge badge
The 4.7 magnum is not what they said it was I have one in my pickup and wish I would have got a hemi but they didn’t have a standard transmissions unless I got the magnum I would have to get a automatic transmission I don’t want any automatic in a off-road truck I can do a lot more with the standard transmission when I am off road and in the hills near my home I need the engine brake and low speed crawling than any benefits I get on the highway I was glad I had a manual transmission on several occasions but I grew up in the area and my dad would not let me take the driver test until I could drive the standard transmission I am glad he did that it has saved me on many occasions I can drive any vehicle from little cars to big rig’s and I have climbed in the cab of a semi truck and drove it to were I needed it to go
Crossfire should've went for an sl not slk style vehicle.
The Jeep SRT8
I hate to think what Dodge would be now, if that merger not taking place!
The Pacifica concept car was hot, the actual production looked boring
Yeah it kind of lacked something. In my opinion, the Aspen looked way better. Should have used a design like that on the Pacifica and then there wouldn’t have been a need for the Aspen really
I am a Mopar guy through and through.....but why doesn't Dodge or Chrysler come up with some brand new stuff??? They have the platforms.....Why just Challenger, Charger,300,Dart (RIP,I love my Dart BTW)....Why not come up with a brand new car with a new name on their existing platforms??? Why do they insist on using car names from the past.....Yes they were great cars and I love the current Charger,Challenger and 300.....But I think a brand new car with a new fresh name would be different and cool....Just a thought.
Because Chrysler dodge are unfortunately being held back so that recourses are wasted on Alfa Romeo and Maserati
@@manuelsmiley7125 good point
With the hemi slated for retirement after 2024, I'd anticipate all new cars to start showing up around then, too. Of course, with Ford and Chevy having already killed off their sedans, I wonder if we'll see actual "cars" or some crossover type thing.
Yeah we just need to keep waiting and we will see some new stuff around 2024. No clue if it will be the same nameplates. On one hand it’s stupid to
Not use those names, on the other hand, those cars are kind of tarnished if they are now electric or move away from the Hemis. But hopefully we will see something new and shiny soon! They are just riding out the current cars for now as they are until the end of gas/V8 engines.
👍🏽
I have a 05 srt6 m113k swap
Polyethylene Taraphthalates! Chrysler was well on the way to developing a plastic injection molded car! It would have been lightweight and very inexpensive. No doubt it would have revolutionized the entire industry but Daimler in their effort to gut whatever value was in Chrysler put the kibosh on that effort. Oh well so much for Superior German ingenuity and engineering
Mercedes realized just as Ferrari did with Ford that there partner less focused on delivering a good product, any more focused on sales of whatever they could get away with. America would make a car out of grass if OSHA would approve it, and you'd buy it. FIAT will learn the hard way.
🙂
Successes from the Daimler/Chrysler merger:
1. LX and derivatives absolutely.Still in production 18 years later and with numerous refinements.
2. 2011 vintage Grand Cherokee off the shared M-class platform. A huge win for the after bankruptcy Chrysler Corp. Yes JK was a success, but Daimler contributed very little.
3. Pentastar V6 a much needed consolidation of too many 6 cylinder engine programs A very good design, marred by a nagging tendency to drop valve seats for no good reason.
Your inclusion of the Crossfire is a total misfire. The donor platform sucked, and the Crossfire I drove once back in the day had all the dynamic charm of a cheap compact pickup truck.
Likewise, your inclusion of the Pacifica? It's not worthy. Overweight, underpowered and seriously lacking in space utilization.
So they weren't "E" class Mercedes except that they were. Do you hear yourself?
Mercedes took over Chrysler after the merger. And with that, Mercedes wasn't trying to help Chrysler as much as they should have been. Mercedes was concentrating on themselves and didn't give enough attention to Chrysler.
The Crossfire was definitely not the best of these. As time goes on the replacement parts prices are skyrocketing.
Not the best but a quality vehicle. Still see lots of them for sale in pretty good condition!
Europeans, Americans, and the Asian companies think way too different when it comes to automobiles and should stay separated. It’s diversity that should stay diversified.
This is the video I've wanted and was waiting to see! 💯👍
I'm glad they divorced, just wish it ended sooner but Chrysler's new marriage with Fiat doesn't seem much better. But the silver lining is technicians on the Mercedes side got more than a little fucked over as well.
Lol yeah 😂 I agee But at least Fiat acknowledged the importance of Chrysler doing what was necessary for Dodge, Jeep, and Ram. Otherwise spending money on brands like Alfa and Maserati was dumb. Should have invested more into Chrysler themselves
I thought stellantis owned dodge and chrysler.
now...
not in 1997 when schremp and eaton made a deal with the devil
Wasn't Chrysler worth 30 billion and had that about that amount saved? How were they about to go through bankruptcy again? Maybe I heard you wrong.
Best thing about Diamler is the diesels and Chrylser did not get any of that.
They did in Europe. You could get a 300C wagon which essentially was a luxurious Dodge Magnum with a 300C front and Mercedes Diesel engines inside. All that was built in Austria after all. Weird story.
@@noahh914 thanks. Interesting.
The mercrap buyout of chrysler was an atrocitie
I hate Mercedes for doing chrysler wrong.
the e class/ml chassis and platform saved chrysler… by producing the charger/300/durango/grand cherokee saved chrysler and are literally the only vehicles dodge/chrysler have left lol
Saved Chrysler from what? Before the merger, 90's Chrysler was extremely successful. And with exception of the Charger. The design language is from Chrysler's original vision of retro styling. Viper, Prowler, PT Cruiser, 300, Magnum, and Challenger. Even Mercedes canceled the Prowler to bring the retro-inspired Crossfire to market
@@seanthornton6844 yep. successful enough to have $9 BILLION in cash reserves for daimler to move to their pockets...
Mercedes has downgraded the quality of Chrysler products
Rather have a Mercedes. Beautiful cars and highest upscale supreme luxury & performance.
The 4 door jk is the ugliest jeep ever and is to long to work well off road
Sadly soon all combustion cars including classics will be banned from public streets in entire EU and Scandinavia :-(
In Germany the Green Peoples Party gave order to shorten fuel supply from 2025
on by reducing all conventional fuel stations to only one state operated central gas station per city or county. Now they want to slow down all the gas station pumps from 20 litre per minute to 2 litre per minute...From 2027 on in the EU certain car spare parts will be banned too....as exhaust systems, turbo chargers and even some engine and gearbox oils...California and New York will do the same from 2027 on.... So no investments should be done in oil burning cars any longer....They even created a new kind of crime here, called emissions and smoke crime.!!!!
Wow didn’t know that. Basically forcing gas out. For the average person, they will steer the hell away from it fast as it’s so much trouble to
Keep them around instead of just buying an EV. Sad to see :(
EV's will fall on their face.
and ppl like to say mercedes merger ruined chrysler lmaoo.. im like dude benz got screwed and literally saved chrysler and SRT was a duplicate of mercedes AMG
yep. benz got screwed by having to find room in their bank accounts for the $9 BILLION they took from chrysler. chrysler was doing fine on its own. i hired in in 1994 and everything was going great. profit sharing, bonuses, selling lots of cars. daimler came in, changed everything we did in manufacturing, then sold us off to an investment firm that knew NOTHING about the auto industry or how to manage one. after THEY gutted the company we were ripe for the bankruptcy because all of our cash reserves had been appropriated...
marspeed mentioned that the SRT6/crossfire was built on an old outdated mercedes platform. chrysler didnt duplicate anything. daimler rebadged their old crap and then blamed chrysler for it..