Slow Selling Chrysler Models Could Be Given The Ax
The pictured Chrysler 200C concept could be one car that might help remake the Chrysler brand. However, the sedan hasn't yet been given the production go ahead leaving the Chrysler brand with no fresh products for at least the next two years.
Time is of the essence as far as Chrysler’s much needed makeover is concerned. Fresh off the heels of its acquisition by Fiat SpA, the Chrysler Group LLC needs to quickly find its footing in order to survive the fast changing marketplace.
May Scrap Two Or Three Models
Sergio Marchionne, who is CEO of both Fiat and Chrysler has been reviewing the Chrysler product portfolio and may end up shutting down several slow selling models according to Automotive News. These models include the Chrysler Sebring and Jeep Compass and might also include the Dodge Caliber. The Caliber could be given a reprieve if it can be quickly re-engineered but at this point it, too, is vulnerable.
Chrysler will be hard pressed to sell one million vehicles in 2009, which is just under half the amount that the automaker sold as recently as 2007. Chrysler’s aged product platform and reliance on larger vehicles is hurting the automaker which has very few models achieving 30 mpg highway or better. Chrysler’s healthier competitors are making a play for Chrysler, Jeep and Dodge customers too who have been enticed by newer products and a more secure future for these manufacturers.
Two Years And Counting
By Summer 2011, Chrysler’s product line up could be radically overhauled as the automaker welcomes several Fiat based cars across the Chrysler, Jeep and Dodge line ups. The Fiat 500 is expected to arrive first, a car that will be unchanged and not badge engineered when it hits the US market. In addition, Marchionne is expected to decide within the next few days which Fiat platforms will underpin what Chrysler products. Once that has been determined, then a huge push by the automaker to remake itself will begin.
A lot can happen over the next two years including a further erosion of Chrysler’s precarious marketing and financial position. However, with the US federal government already investing seven million dollars into Chrysler, the likelihood that Chrysler would be allowed to die is small.
Chrysler Withers And Jeep Prospers?
Marchionne isn’t likely to close down any one of the three Chrysler brands, but he could use the Fiat distribution network to promote Jeep, which some analysts believe to be a neglected brand as only the Wrangler and Gran Cherokee models have widespread appeal. The weakest brand is probably Chrysler itself which has no new models to offer customers and nothing new on the horizon except, perhaps, the pictured 200C.
Finally, Marchionne has one more thing he must do in order to ensure Chrysler’s success — convince customers that what is coming down the pike is worth waiting for or risk losing customers to its competitors, perhaps permanently.
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