Chrysler is announcing its five-year plan today at its company headquarters in Auburn Hills, Mich. The automaker says it had $5.7 billion in cash at the end of September. This is up from $4 billion at the end of June.
More importantly for car shoppers, Chrysler’s head of the Dodge Car brand and design, Ralph Gilles, announced there will be 11 new or refreshed vehicles by 2014, the Detroit News reports.
Chrysler will improve the Dodge Caravan, Dodge Avenger and Dodge Journey. The exterior look and interior quality will receive upgrades. The vehicles will also get new, quieter engines.
A new Dodge Charger is coming next year, as well as a seven-passenger crossover to replace the Durango. The Dodge Caliber will eventually be replaced by a compact sedan, similar to the Dodge Neon. Also, a new D-size sedan will replace the Dodge Avenger.
Dodge Neon
Remember the first generation Dodge Neon? It's being resurrected in the form of a new compact sedan and will replace the Dodge Caliber.
The subcompact Dodge Hornet concept hatchback will be put into production. The Dodge Nitro will be replaced with a version closer to the original Nitro concept.
Chrysler will introduce a hybrid version of the Dodge Ram in 2011 and put a test fleet of plug-in minivans and Rams on the road, the Detroit News reports.
Jeep fans will be glad to hear that a Wrangler with a diesel engine will hit the market by the end of 2011. It will feature a start/stop system that saves fuel when the engine turns off while the Jeep is in idle.
There’s no argument that the new Chrysler has to win buyers back and fast. Will its new vehicle line-up and Fiat models attract buyers to a Chrysler, Jeep or Dodge showroom?
Say goodbye to most of the new products introduced by Jeep in the past decade. After this year, there will be no more Jeep Commander, Jeep Patriot or Jeep Compass, according to the latest reports from Detroit. The 2010 Jeep Grand Cherokee is on track and will be available by the second quarter of 2010; a possible new Fiat Panda-based small Jeep will join the range in 2013. The lineup:
* 2010 Jeep Grand Cherokee: Chrysler's nearing production of the new model. Initially it had been pitched as a 2010 model; the new plan announced today refers to it as a 2011.
* Jeep Patriot / Jeep Compass: Both replaced in 2013 with a single new vehicle.
* Jeep Wrangler: Chrysler calls it the core of the Jeep lineup. More spin-off models and more presence are in the plan as the evergreen Wrangler stays in the product plan.
* Jeep Liberty: A significant refresh is planned for 2010.
* Jeep Commander: According to the plan, the 2010 Jeep Commander returns, but then the vehicle is "reallocated" to "international" markets.
* 2013 Jeep small SUV: expected to be based on the Fiat Panda, a sub-Wrangler Jeep off-roader is in the works.
Chrysler LLC has concluded its 7-hour-long marathon presentation of the business plan (read our Live Blog of the event here) that will see it through the next five years, and what we're left with is a little confusing. It's almost as if the automaker's new executives, amidst apologizing for the company's past and promising to do better in the future, were hoping we'd all fall asleep or get lost in the details. Well, we didn't fall asleep or get lost, and below you'll find a breakdown of what we learned while spending the day hip deep in Chrysler's future product. You can also check out the slides from Chrysler's presentation relating to product in the gallery below.
Models On Their Way Out
* Jeep Patriot (end of 2012)
* Jeep Compass (end of 2012)
* Jeep Commander (end of 2010, may continue being sold internationally)
* Chrysler PT Cruiser (end of 2010)
* Dodge Dakota (mid 2011)
* Dodge Caliber (mid 2012)
* Dodge Viper (mid 2011, may return in 2012)
New Models That Are Coming
* Jeep compact SUV (2013, supplied by Fiat, may be Panda)
* Jeep small CUV (2013, supplied by Fiat, replaces Patriot and Compass)
* Jeep Liberty (2013, replaced by Fiat product but retains name)
* Chrysler small car (2013, supplied by Fiat)
* Chrysler compact sedan (2012, supplied by Fiat, replaces PT Cruiser)
* Chrysler Sebring (2013, replaced by Fiat product but retains name)
* Chrysler midsize CUV (2013, supplied by Fiat)
* Ram midsize unibody pickup (under consideration for 2011)
* Ram large and small commercial van (2012, supplied by Fiat)
* Dodge small car (2013, supplied by Fiat)
* Dodge compact sedan (2012, supplied by Fiat)
* Dodge Avenger (major update 2010, replaced by Fiat product 2013)
* Dodge full-size CUV (2010)
* Fiat 500 (late 2010, convertible 2011, Abarth 2012)
Models Staying, Receiving Attention
* Jeep Wrangler Diesel (2010/2011, not confirmed for U.S. market... yet)
* Jeep Grand Cherokee (all-new 2010)
* Chrysler 300C (all-new 2010)
* Chrysler Town & Country (major update 2010, next-gen 2014)
* Ram 1500/2500/3500 (major update 2012)
* Dodge Journey (major update 2010)
* Dodge Nitro (major update 2011 under consideration)
* Dodge Challenger (refresh 2011)
* Dodge Charger (all-new 2010)
* Dodge Grand Caravan (major update 2010, next-gen 2014)
If you wanted to see a group of executives perform a public mea cupla, I wish you could have sat next to me today for Chrysler's new business plan meeting in Auburn Hills, Michigan.
The belabored automaker, recently out of bankruptcy and now owned in part by Italy's Fiat, admitted faults and promised the future would be different.
The company's head of quality, Doug Betts, explained that problems were systemic.
"When I arrived at Chrysler, there was no definition of quality," Betts said. In one startling example, Betts detailed a period where customer-reported vehicle problems went unresolved. The problems weren't acted on, with Betts saying that the company "did nothing for 71 days." Chrysler promised that a new quality system would ensure those problems don't happen.
What's Changing
Key to Chrysler's plan will be a close sharing arrangement with its new shareholders, Fiat Group (Fiat owns 20% of Chrysler Group LLC now but could have as much as 51% in a few years). A few popular models will be lost in the transition, but many new models will arrive over the next five years.
Dodge
Dodge is splitting its car and truck groups, creating a new "Ram brand" which will focus only on trucks. All Rams will still feature Dodge branding, but those emblems will be downplayed. Ram Brand CEO Fred Diaz told AOL Autos that when customers were asked about what the Dodge brand meant to them, they nearly always responded by mentioning the trucks.
"Dodge was trying to be all things to all people," Diaz said. Now, he said, the cars can grow on their own and the trucks can get unique Ram branding. All dealerships will sell Ram trucks.
In addition to this split, expect the following:
Going Away:
- Dodge Viper: Gone in the summer of 2010, while company officials say a return in 2012 is under consideration
- Dodge Caliber: Dead in 2012, but a vehicle of a similar segment is set to arrive around the same time
- Dodge Dakota: Wound down in 2011, but a new mid-size truck using a unibody construction will arrive around the same time
New products:
- A new small car, in partnership with the Fiat Group, in 2013
- Charger: All new Charger is expected in 2010
- New mid-size truck: Under construction for a 2011 launch in a unibody construction
- New large commercial van: 2012
- New small commercial truck: 2012, shared from the Fiat Group
- Potential for long-term focus on the commercial truck market
Undefined:
- NASCAR: Ram Brand's support for the NASCAR Craftsman Truck series isn't known right now, but Ram's Diaz says he personally feels like it would be a good match. Dodge's support of the Challenger in NASCAR is secure, at the Sprint Cup level and Nationwide level next year.
- Hybrids: Hybrids will likely be a part of the Dodge cars, but not a part of the Ram brand plan right now, but could be. Diaz indicated that the jury is still out when it comes to fitting hybrid powertrains into trucks; quite simply, he's not sure truck buyers want them right now, but says that could change down the road.
- SUVs: With Ram becoming a truck-only brand, one might imagine that full-size trucks will be a part of the Ram brand (as GMC does -- it only sells trucks and SUVs). Diaz says SUVs will stay with Dodge car, though, and not be a part of the Ram brand.
Jeep
Jeep is positioned to become quite a jewel in Chrysler (and Fiat's) crown, but it has a ways to go. The high time for the brand was the 1990s, when they sold 629,000 models with only 3 models; in the new millennium they expanded the model lineup to seven but sales actually dropped by over 150,000 units. Clearly, the strategy failed.
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But the future of Jeep looks bright, with the Wrangler rightfully positioned as the centerpiece. Among the other changes:
Going Away:
- Jeep Compass and Patriot: Will be consolidated into a new vehicle that will debut in 2013. Until that time, both vehicles will undergo "major modifications" next year
- Jeep Commander: Going away as of the end of 2010, with "international reallocation" for the vehicle occurring around the same time. This could mean that the Commander would live on in a different country with different equipment.
New Products:
- Jeep Wrangler: New diesel model in the end of 2010
- New Small SUV: 2013 launch, appears to be even smaller than the Patriot and Compass and will likely be imported from Fiat.
- New small crossover: 2013 launch, consolidating both the Compass and Patriot, imported from Fiat.
- Jeep Liberty: Will be replaced by a Fiat product in 2013, but will likely carry on the Liberty name
- Jeep Grand Cherokee: New model debuts in the end of 2010 as a 2011 model
Undefined:
- Jeep could become a key way for Chrysler and Fiat to export more products around the globe, but those plans were not discussed today.
Chrysler
Chrysler, which debuted a new logo, is set to return to the notion of American excellence. The brand's CEO is eager to debut a new marketing campaign, a new website and new catalogs, all in an attempt to reposition Chrysler as an American icon.
Going Away:
- PT Cruiser: The retro city car will wave goodbye in the end of 2010
New Products:
- 300: There's a new model coming in 2010, including new
- New small car: A new Fiat-sourced product will arrive in 2013
- PT Cruiser replacement: A C-segment vehicle, sourced from Fiat, will replace the PT Cruiser
- Midsize crossover: A new midsize crossover vehicle will launch in 2013, sourced by Fiat
- Town & Country: A new Town & Country will launch in 2014
- Special models: Special models of the 300, Grand Caravan and Sebring will launch early next year
- Mid-size sedan: A replacement for the Sebring is scheduled to appear in the latter part of 2010
How Fiat Helps Chrysler
While once great, Chrysler, Jeep and Dodge were starved for products and the technology within their vehicles became dated. Ironically, Chrysler and Dodge are brands that were built on great engines and great technology. Jeep, while never a technical powerhouse, was nonetheless considered technically sophisticated for its decades-long reputation for off-road capabilities. In light of these brand hallmarks, it makes all the sense in the world for Chrysler's brands to receive a shot in the arm for technology. And that's exactly what Fiat is going to deliver.
Fiat's expertise in powertrain technologies, such as diesels, turbochargers and direct injection will start appearing in Chrysler, Dodge and Jeep products very soon. In fact, if you look at the engine plans for the three brands over the next five years, you see more Fiat-sourced powertrains than American powertrains. In addition, Chrysler will introduce the small Fiat 500 in North America. It will launch in "key metro areas" and at select dealers throughout the country. It's possible that the brand might not even display the Fiat logo (nor will it carry the Dodge, Jeep or Chrysler logos) and instead create a brand new 500 logo unto itself.
So, is this a good day or a bad day? If you're a fan of Chrysler, Dodge and Jeep brands this is undoubtedly a bright day. If you're an owner of one of the models going away, though, it's bittersweet. The company will live on but in a different form. But, finally, Chrysler has a teammate that wants -- no, needs -- to see increased global growth and is willing to act like more of a partner in the future. This is different from Chrysler's previous link up with Mercedes-Benz
"Mercedes really couldn't use anything they got out of Chrysler," said Jim Hall, an analyst with 2953 Analytics in Birmingham, Michigan. "The water really didn't flow from America to anything of value for Mercedes. But now, Fiat gets the company for a song, gets them the volume they need to maintain critical mass purchasing and the ability to sell Jeep around the world. It's win, win."
It's the first day of the new Chrysler. There are many more changes to come, we expect, and more products and concepts to see, but leaving today's meeting we feel more confident in the company than ever before. Andiamo!
They haven't said yet what, if any of these cars that are replacing the caliber, patriot and compass are going to be built in Belvidere. Has anyone heard anything about that? Also rumor is that the hornet is to be built in belvidere, is that true?
YourPonyDied - Thank you for all of the cut & paste articles!
I find it interesting that they talk about replacing the Dodge Caliber with a Neon type replacement. I assume this would be at the Belvidere plant, but who knows for sure. I have said for a long time that if they would have changed the look and name of the Neon at the start of 2000 we could have kept building them even today. If re-tooling cost and quality is such an issue when you start from scratch, why do they not focus more on making what they already have better rather than always going back to the drawing board. When the Neon ended, it had become a car with excellent quality and if I remember correctly the SRT4's were still selling well too. It's such a shame to have worked so many years getting almost perfection and then to have it all ripped away only to try to return to it years later.
The Neon surly would have kept selling today with a new name and some safety changes that would of course brought it more in line with the MPG of the Caliber. Look at the body style of the Chevy Cobalt it's a Neon look-a-like to me.
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