With new vehicle sales set to tank by over 30 percent this year, Chrysler is casting around for a way to generate a little cash. And the answer is… the after market! “[Chief marketing officer] Meyer said Chrysler’s loyalty study group includes dealers. The group is looking hard at service issues, notably customization. Advances in vehicle telematics and connectivity promote customization, she added. ‘If buyers keep their vehicle longer, do they want to customize it more?’ Meyer said. ‘Do you want something new on the interior or a little something to spiff the car up? There are opportunities for us.'” So, one failing business model (Pep Boys) replaces another (making cars). Oh, and did I mention ChryCo wants to get into the rental business? “Chrysler also is looking at ways to provide customers occasional-use vehicles, Meyer said. As an example, she described an owner who has unloaded an SUV but ‘you have to move things twice a year for your parents.’ She said Chrysler and its dealers will seek to respond to that need.” Meanwhile, Automotive News [sub] reports that Jim Arrigo, chairman of the Chrysler Jeep National Dealer Council, says customer loyalty “has gone right out the window.”
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Step 1. Build good cars
Step 2. Build good brand
Step 3. Repeat.
I think looking into Chrysler they’ve pretty much destroyed any credibility they had, they’ve pretty much alienated themselves competitively from any comparison, and they’ve pretty much lost any momentum needed to survive (exponentially compounded with their bloated bureaucracy) even with the $50b bailout. As a manufacturer they are simply 2 dead brands walking – as their only strategic sales ploy is discounted pricing it leaves them as the Walmart of cars (Jeep and maybe Viper would be the only car lines that would have any going concern). Nothing much left except liquidate (as even with bankruptcy they won’t be able to turn themselves around). Only GM and Ford have a chance and only if they reorganize properly under Chapter 11.
Now, some of the above ideas maybe (maybe) plausible such as one time rental of the larger vehicles where needed. However, this is basically making Chrysler and their dealers into a much more vertical rental car company. If the purpose of their cars is for rental – who’d actually go buy a new one? If I’d consider any of their cars I’d opt for a slightly used one instead as that’ll be the biggest discount.
Don’t build the Jeep Commander?
They’re SO losing sight of their core market. >:O!
Here’s an idea, though. Make crappy cars German companies can reskin for loads of profit!!!
I’m glad Chrysler will be expanding its emphasis on customization because I, for one, find that my Caliber SRT4 has far too subtle exterior styling.
I’ve met Jim Arrigo – he’s friends with my outlaws – and he’s loyal to nothing but money, so forgive me while I giggle slightly at the fact that all of his money is tied up in one giant sucking sound called Chrysler (he doesn’t own any other franchises).
blautens, if nothing else, his radio ads are funny…
Somewhere, JC Whitney breathes a sigh of relief.
If by “aftermarket” they mean “interior pieces that last 10 years” and “bumper covers that don’t warp,” then it’s a good idea!
Just think of the 300. I bought one three years ago and it was the rage. There was not enough the automags could say in it’s praise. My dealer doesn’t even have one in stock right now, and the entire 300 enterprise has tanked by 50%. In other words chrysler’s latest dropped ball. I am supposed to buy another one of their products? I won’t, even though the 300 has treated me pretty well. However, to buy a new one, it would need to be freshened, updated and more fuel efficient. My 300 cannot be told apart from the new ones and this is not how you get owners to trade cars. Further, the resale is tanking like all chryslers, (and other American sedans) so to not by foreign next time ,is to shoot myself in the foot (or head). Me and thousands like myself, were the last hope for Chrysler to survive and we are gone. Rest in Peace Chrysler.
Well at least someone is thinking. Still its hard to find enough money making ideals to deal with such a big company. It sounds like an interns mindset, nothing wrong with that, but please be realistic.
How is it that sales slid only 30% when all they make is the bottom of the barrel product? Seriously, who wants a Sebring when for the same money, you can buy a one year old Civic?
Well at least someone is thinking. Still its hard to find enough money making ideals to deal with such a big company. It sounds like an interns mindset, nothing wrong with that, but please be careful about expectations.
This is the saddest story yet – I’m going to miss Pep Boys.
Hmmmmmm…. Static Strips with a genuine Chrysler Pentastar stamped right on there for all to see
I loved my 300C. I miss it. Chrysler needs to study why that car was such a success before price increases, no ad support, and decontenting did it in.
Customization? Going up against the existing rental companies with “occasional-use” vehicles?
Pathetic.
Hey, here’s an idea. Forget rentals. Chrysler should go into the time-share business. Every shareholder gets to use the SUV for two weeks a year.