How Chrysler keeps killing it

There is a bag of tricks that automakers can use to boost sales figures. When Lee Iacocca took charge of Chrysler 1978, he unwound its notorious sales bank, where cars built without customer orders would be stored on vacant lots until they could be sold at fire sale prices. GM used to be famous for selling cars to rental companies for three or four months to record a sale and then buying the cars back at a loss for resale. Insiders described the process as "manufacturing used cars."

So far, Marchionne has been sparing in his reliance on fleet sales and is holding the line on incentives. Chrysler's bottom line attests to that. His success is mostly due to targeted design improvements, smart marketing, and savvy brand management. As former car bailout chief Steve Rattner told David Shepardson of the Detroit News last week, "Chrysler is amazing. I would have never in a million years bet that Sergio could do what he's done."

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