In 2006, Chrysler (NYSE: DCX) lost $1.5 billion as the company failed to adapt to changing trends in the auto industry, focusing on minivans, pickups, and sport utility vehicles. By way of explanation, Chairman Dieter Zetsche offered this, which is probably one of the dumbest quotes I've seen so far in 2007:

"The crucial factor was the unforeseeable shift in demand to smaller, more fuel-efficient vehicles, which was triggered by increased gas prices in the U.S." (emphasis added)

Wow. What's next? Will people continue to buy dog food that kills their pets? Will Atari explain the declining sales of the Atari 2600 by saying that "the crucial factor was an unforeseeable shift toward higher quality, more enjoyable video games"?

All I can say is that if the chairman of an automobile manufacturer considers the shift toward smaller cars in light of rising gas prices as unforeseeable, the company probably needs new leadership.

On April 5th, Kirk Kerkorian offered $4.58 billion for the company, so maybe change is on the way.

In the ads he's depicted as an almost fantastical creature, "Dr. Z," who answers consumers' quirky questions about their cars. And Dieter Zetsche sought to join Dave Thomas, Colonel Sanders, Bill Ford Jr. and even (yes) Lee Iaccoca as a CEO who pitched his company's products in its advertisements. The TV ads for DaimlerChrysler AG (USA (NYSE:DCX) have inspired much delight amongst consumers (especially me), although there's a problem: consumers don't believe Dr. Z is really the CEO of Chrysler.

Chrysler put Dr. Z on temporary leave a few weeks ago, prompting a firestorm of complaints by faithful (and cheers by those who were "creeped out" by his mustache, or simply couldn't understand his cute German accent).

The Wall Street Journal [subscription required] says today that Dr. Z might be fired permanently as pitchman (despite the $100 million DaimlerChrylser has spent on the campaign thus far), citing the $1.5 billion the company lost in the third quarter as a catalyst for change. (No one's saying Zetsche might being fired as CEO, just for the record.) Could Dr. Z be too cute for his own good? Even I had to go look at DaimlerChrysler's corporate profile to be sure that Zetsche was really the CEO when I first saw the advertisements (and I should know better).

In my opinion, though, Dr. Z is more than successful. He's got people talking, and he's just so adorable. I love thinking about DaimlerChrysler as this mesh between German engineering and American chutzpah. He's so vastly better than the Hemi guy, I can't even figure out a way to put it into words. And I had the same questions about Wendy's Dave Thomas when I first started seeing him on commercials -- is he real, or is he SAG? -- and advertising critics the world over agree that Thomas was good for the hamburger chain. Dr. Z makes me, and countless other potential consumers, feel good about Chrysler cars, and that's what it's all about.

Please, DaimlerChrysler, fire the Hemi guy, instead!