Carving Up Chrysler: Fun Speculation
I’ve written this post several days ahead of its appearance online, so the news of Chrysler’s sale could be final by this time. Still, it is kind of fun to see how everything might play out, especially given the different scenarios that have been discussed over the past few weeks.
It is a given that Chrysler as we know it will soon go away. Cerberus Capital Management, which took over Chrysler from Daimler in 2007, wants to sell off the company whether that means collectively or in pieces has yet to be determined.
Given that the entire Chrysler LLC set up of Chrysler, Dodge, Jeep, Mopar, and GEM probably doesn’t have much appeal to anyone, I see the company being thoroughly cannibalized and sold piecemeal. The following are some of my ideas on how everything might transpire:
The Minivans — General Motors has been emphasizing crossover models ever since getting out of the minivan business, but the Chrysler Town & Country and Dodge Grand Caravan are too valuable to pass up. Look for the T&C to become a Buick model while the Grand Caravan is sent to Chevrolet. Saturn and Pontiac might get their own versions at some point, but Buick could definitely benefit from having the T&C.
Jeep — Renault is back and they want to take back Jeep, which they sold to Chrysler in 1987 when Jeep was part of the American Motors Corporation. Certain Jeep models may not survive, but of all three of Chrysler’s major brands, Jeep will be the lone survivor.
Dodge Ram — Nissan will purchase the Dodge Ram which will be quickly become the 2010 Nissan Titan. Chrysler and Nissan had previously agreed that Chrysler would supply the platform for the next generation Titan and now the Japanese automaker can take over the entire model which is a much more popular seller than the Titan.
Dodge Viper — Fiat owns Alfa Romeo and has wanted to get a toehold in the US market with its Italian sportscar line. One way to do that is to acquire the Dodge Viper for Alfa Romeo while buying at least one Chrysler production facility to produce Fiat models. Perhaps the Dodge Caliber or Dodge Journey would transition to Fiat.
Ford Gets The Challenger — I’m going out on a limb here, but if Ford were to acquire the Dodge Challenger and offer the car through Mercury, it would immediately boost the Mercury name. Sure, the Challenger is competition for the Mustang, but Ford could control two-thirds of the pony car market with this purchase. Sounds nutty, but these are crazy days in which we live.
Orphaned Cars — Several Chrysler and Dodge models will probably be laid to rest once Chrysler LLC is divided up, though one or two Chinese automakers could jump in to snap up what they want or Peugeot, the French automaker might do the same. The following Dodge products are probably R.I.P. — Avenger, Nitro, Durango, Dakota, Charger, and Sprinter. The following Chrysler products are also likely D.O.A. — 300, Aspen, and Sebring.
On A Serious Note
Fun as it is speculating what could happen, many lives will be impacted by what takes place over the coming months as thousands of workers lose their jobs, plants shut, and confusion reigns on just how Chrysler, Dodge, and Jeep owners will fare. As far as GEM goes — the company’s electric vehicle arm — I can’t even guess. Right now, GEM produces a small fleet of limited use electric vehicles, which could appeal to any automaker or farm equipment company looking to expand into this niche.
MOPAR is the parts arm of the company and will need to be around to supply what car owners need for a very long time. Perhaps a large parts supply company, like a DENSO, might be interested in buying MOPAR ore even select manufacturing facilities.
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