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Chrysler just doesn't have the image to go full luxury. It can compete with Buick, Saab, and Volvo (am I leaving any in that category out?) but it won't be at Cadillac, Lexus, and Acura standards for a while, to say nothing of BMW and Mercedes. Luxury car buyers don't buy the car, they buy the name that goes with it. The individual merits of the car don't matter nearly as much as the prestige that goes with the name. So even if Chrysler started turning out some seriously nice cars, it will take a while for the perception to catch up. Their best strategy is to look at Hyundai. They're making cars that can rival the luxury and near luxury cars, but aren't considered in the same category.
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