Chrysler & Dodge Survive

Discussion in 'The Champagne Room' started by SRT-Tom, Jun 2, 2018.

  1. SRT-Tom

    SRT-Tom Full Access Member

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    Fiat, on June 1, issued its 5-year investment plan. The big news is that the Chrysler and Dodge brands will survive- for now. The company said it plans to make most capital investments in next five years in global brands just 25% will go to Chrysler, Dodge and Fiat. Marchionne said, "This presentation's focus is on global brands. I think Chrysler is going to continue to be relevant in the U.S. Don't expect it to be a global brand."


    Chrysler and Dodge will hang on for exactly as long as management doesn’t see a way to make more money without them. That’s one of the conclusions from the marathon briefing in Italy. FCA devoted reams of paper and pledged billions of dollars to the brands that make more money now and may deliver higher returns in the future: Jeep, Ram, Alfa Romeo and Maserati.


    As reported by the Detriot Free Press, Chrysler and Dodge have shrunk so much that keeping them running is easy and inexpensive by the auto industry’s cash-devouring standards. Chrysler sells just two vehicles- the 300 sport sedan and Pacifica mini-van. Dodge has five- the performance-oriented Charger and Challenger; Journey and Durango SUVs, and Grand Caravan minivan.


    Unlike brands like Pontiac and Oldsmobile, which had bigger model lines, devoted design and engineering teams and dealers, the incremental cost of keeping Chrysler and Dodge in business doesn’t amount to much more than light bulbs for Dodge and Chrysler signs in front of dealerships that already sell far more Rams and Jeeps. Until they require significant investment to develop new models, Chrysler and Dodge can run more or less on inertia, with a little money budgeted for updates each year. (Note- There goes our 'Cuda dream).
     

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