Four months after exiting bankruptcy, Chrysler Group LLC is about to unveil a product road map that relies heavily on vehicles from Italian partner Fiat SpA while abandoning many of the U.S. car maker's own models.
The plan, due to be revealed Nov. 4, involves the return of Fiat's premium, sporty Alfa Romeo brand to the U.S. starting in 2012, according to people briefed on the plans. Chrysler also will introduce to Americans the 500, Fiat's tiny car that is popular in Europe.
Fiat and Chrysler also are working on several new vehicles with Fiat technology for the U.S., including ...
While many of us eagerly await Fiat's official plan for Chrysler, which will be announced on November 4, 2009, the Wall Street Journal has taken this opportunity to speculate what will be announced.
Below this article is a slideshow filled with photos of Chrysler, Jeep and Dodge products and my thoughts on each of them.
If you guessed that Fiat-based models will pepper the future lineup of Chrysler's product lineup, then you would be correct. Let's analyze the WSJ report:
Jeep Commander will be dead next year. Why isn't it dead already? This thing was a non-starter from day one. I recall viewing some early shots of the Commander when a colleague turned to me and said, "This photo is a hoax, right?" Sadly it was not.
New Jeep Grand Cherokee and Chrysler 300 next year. Both were great vehicles in their time, but is now the time for these vehicles? Current consumer behavior would suggest not.
Increased marketing of the Jeep brand. More marketing is better than less, but I am not sure how much this will help.
Dodge Caliber, Dodge Avenger and Dodge Nitro die while the Dodge Charger and Dodge Challenger live. Eventually phase out Dodge Grand Caravan leaving only the Chrysler Town and Country. Most of these changes won't occur for some time , so don't look for deals on orphan Caliber's just yet. Heck, the Caliber just got a new interior. Focusing Dodge as a performance icon makes some sense, but what will replace these bread and butter cars? Also, I understand that you want to de-duplicate the lineup, but the minivan segment is a big deal for the company. Even long term, why would you want to go and mess with its success by cutting back to only the Town and Country? Aren't Plymouth Voyager owners still licking their wounds?
Chrysler PT Cruiser, Chysler Sebring sedan, Jeep Compass and Jeep Patriot will be axed. No shocker here, the PT was already saved from the executioner once, it has to be replaced at some point. Sebring and Avenger sedans have been trouble since the get-go for Chrysler. While the Jeep Patriot is passable, the Compass is quite ugly and a detriment to the Jeep brand's rugged image. Fiat platforms should play well in this space, but 2012 better hurry up and get here.
Fiat 500 arrives in 2011. Can't arrive too soon! While it won't sell in huge numbers, it will generate much needed showroom traffic.
Alfa Romeo returns with volume models in 2012. Richie riches have the Alfa Romeo 8C Competizione to play with while the rest of us have to wait. Will the wait be worth it?
More than a week ahead of Chrysler's long-awaited five-year plan announcement, initial details of the strategy have begun to out. According to anonymous sources at Chrysler, Fiat's plan for the struggling American automaker includes the deaths of nine Chrysler, Dodge, and Jeep models and the introduction of three Alfa Romeos and three Fiat-based Chrysler and Jeep vehicles.
According to sources contacted by the Wall Street Journal, Chrysler will have to soldier on mostly on its own until Fiat products will be added to the lineup in 2012. Differences in crash and emissions standards and an unfavorable exchange rate mean that Fiat needs to build all its vehicles in the U.S., which will delay their introduction until 2012. The first Fiat product to enter the U.S. market will be the tiny 500, which has been a smash hit in Europe and will go on sale in 2011 after production begins in Mexico.
2009 Dodge Ram
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The impending death of multiple Chrysler models has long been rumored a cornerstone of Fiat's plan, but specific cuts have not been known until now. That is, if the Journal's sources are indeed correct. Many of the vehicles on the list have long been thought to be on the way out. The model breakdown for Chrysler and Fiat brands, according to the Journal's report, is as follows:
DODGE
The Dodge Caliber compact and Avenger midsize sedan are dead in the next few years, as is the Nitro SUV. Dodge becomes a more performance-oriented brand retaining the Challenger muscle car and Charger sedan as well as the popular Journey SUV. Dodge trucks will be split into their own Ram brand, as previously announced. The Grand Caravan minivan also dies within five years.
2011 Chrysler 300
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CHRYSLER
The PT Cruiser finally sees its life support cut off in 2012 and the Sebring will follow it out the door. That same year, Chrysler will launch a new compact and a new midsize, both based on Fiat underpinnings. A redesigned 300 is expected to debut in 2011 along with the 500, which will be sold in Chrysler dealerships possibly without any brand badges. The Town and Country will soldier on as the last of the full-size minivans.
2010 Jeep Grand Cherokee
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JEEP
The Trail-Rated brand is the hardest hit. The slow-selling Commander is dead by the end of next year and the less capable Compass and Patriot will disappear by 2012. The original Jeep, the Wrangler, continues through yet another parent company bankruptcy and sale mostly unharmed. A redesigned Grand Cherokee gets bumped up and now comes out next year as one of the few new product offerings Chrysler has to tide itself over until 2012. Jeep will get another new model in 2012 that will be based on Fiat underpinnings, likely from the Panda.
Alfa Romeo MiTo
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ALFA ROMEO
That's right, Alfa is back. Contrary to previous reports, the little MiTo will come to U.S. shores as the first mainstream Alfa in the U.S. in a decade and a half in 2012 (the high dollar 8C Competizione has been sold here in extremely limited quantities). It will be followed in 2013 by the Milano midsizer, which replaces the current Europe-only 147, and an unnamed second midsize Alfa. All three will be built in North America, likely at Chrysler plants.
The biggest issue for Chrysler and Fiat is time, as in Chrysler's running out of it. It's clear that Fiat CEO Sergio Marchionne sees Fiat product as the solution for Chrysler's woes, but he has to buy time until his Fiats and Alfa Romeos show up in two years. Until then, Chrysler must rely on its aging fleet of trucks, SUVs and large cars to keep the company afloat. While rivals at Ford and GM cut brands and plan to roll out several new models each year for the next several years, Chrysler must rely on two updated vehicles and an untested small car until it can add a brand down the road. Meanwhile, Fiat swears it won't invest any money in the company, only technology and managerial expertise. Chrysler's market share has dropped nearly 3% since last year and now sits at just 8.3%.
Fiat 500
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Fiat's gamble on replacing Chrysler product with its own faces perception challenges as well. Both Alfa Romeo and Fiat left the U.S. market with less-than-stellar reputations, something American consumers may not have forgotten. Further, the last time Chrysler paired up with a foreign automaker and adopted their technology, it didn't work out so well.
What do you think of Chrysler/Fiat's plans? Is this the right way to save Chrysler, or should the obituary writers get their pens ready? Have your say in the comments below.
I heard this tonight from a neighbor that works at BAP, I guess that they are bringing a new car to BAP-to be revealed soon- but it is on a new platform so that means retooling. There are some people coming from Kocomo and other places and I guess that their paperwork says that they will be here for 5 months. They said that they were told that both shifts will be running until April and then shutting down for retooling and come back after shutdown in July. Just rumors at this point. I guess we will find out soon. I will be glad to work until April and then shut down. Any thoughts? We all know that this is subject to change on a day to day basis, that part will never change.
there are a few problems with that rumor, theory. one, if its a platform change there is no way that transition takes place in that amount of time. two, where does the money come from in order to finance this? fiat doesnt have it. unless the govt kicks more in or there is some hidden reserves i havent located this isnt possible. i am sure they have a plan for the plant but it wont transpire that quickly. Fiat has nothing to lose here but the idea that they will succeed here with their product line is a stretch. possible, yes, probable, no. certainly they will test the waters here with perhaps the 500, mexico, before getting committed too far. they have no investment to lose, only capital from the govt and their technology. they essentially set up shop for free. who wouldnt take that. still u take a shitty car company and put it with an average one that doesnt equal a success story even with govt. funds. the big assumption that is being made is that car sales will go back to where they were. they wont for several years. sure they will trend up but with reduced share at 12 million units thats alot different then 17 or 18 million and more competition coming in for smaller slice of the pie. if they are smart they will target niche markets and just do a few things well rather than try to compete with a full lineup. anyway what this means for BAP is a mystery really. Wednesday should reveal alot but i doubt they commit totally since the next contract isnt that far away.
A area manager told someone I work with today that belvidere will be going down up to 5 months for retooling for fiat vehicle. They are going to tear down and retool body shop and modernize for fiat way. Came from very good source. Interesting; I thought
This is the same thing I have been hearing at work. My area manager had a meeting with us material drivers on Friday. He said next week Fiat people will be at the plant. This was the first time he ever gave us a meeting before the start of our shift. I believe it is for a big announcement for our plant. He also told us that this is the cleanest plant he has ever been in.
However, they are bringing 2ND back to boost Caliber production
Now for many cars, there is a shelf life and I have seen more neg than pos reviews for the Belvidere three so I will say, a 6-7 year run for them seems decent, esp for how theyve been bashed(other than MPG assessments)
It seems odd tho to shut down that early while they are still supplying said vehicles into the market. The 2012 mention about ending the line simply means the cars will cease to be made by then, which is like the PT cruiser. Its slated to be discontinued but as far as I know, its still being made. They can be building the three up to dec 31st of 2011 and then end production(the most drastic approach)
So ya never know, the company knows more than we do, but new product is always good, hopefully though its enough product for 2 or even 3 shifts
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