Can Chrysler survive prolonged US slump?

This town may not be big enough for the three of us.



As U.S. consumers struggle in the face of tight credit, rising prices and job losses, auto industry experts say that a prolonged slump could cut the Detroit Big Three -- General Motors Corp (GM.N: Quote, , Research, ), Ford Motor Co (F.N: Quote, , Research, ) and Cerberus-run Chrysler LLC -- down to the Big Two.



Chrysler is widely perceived as most vulnerable, although it says it is meeting its financial goals.



'Chrysler is certainly the weakest of the three,' said Erich Merkle, an automotive consultant at Crowe Horwath.



Some in the industry say 2009 will be a pivotal year for the Big Three.



'I think there will three (U.S. automakers) going into next year and next year will be a telling point whether three emerge,' Tom Stallkamp, an industrial partner at New York private equity firm Ripplewood Holdings and a former president of Chrysler, said at the Reuters Autos Summit this week.



Even more than the two other American auto makers, Chrysler is seen as overly reliant on gas-hungry heavy trucks and sports utility vehicles, a problem compounded by the fact that unlike Ford or GM, Chrysler has largely failed to go global.



This leaves the company overly exposed to U.S. consumers when automakers are eyeing expanding markets like China, India and Eastern Europe for real, long-term sales growth.