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Buoyed by record light truck, van, and large sedan sales, revenues were at an all-time
high. Chrysler had taken a risk in producing vehicles that captured the bold and pioneering
American spirit when imports dominated the market ? the Dodge Ram, the Jeep Grand
Cherokee and the LH Sedan Series. In these vehicles Chrysler found an instant mass appeal,
and its U.S. market share climbed to 23% in 1997. As revenues and market share rose,
product development costs shrank to 2.8% of revenues - compared with 6% at Ford and 8%
at General Motors1. Chrysler's integrated design teams and noncompetitive relationships
with suppliers kept costs down, while its marketing department scored success after success
in gauging consumer tastes...
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