Sergio Marchionne’s misguided obsession with the alleged brand equity of his recently-acquired Chrysler Group marques has deepened, as Chrysler, Dodge and Jeep launched new branded merchandise today [hilarious press release here]. The funniest part of the whole cross-branding effort is the very idea that significant portions of the population want their day-to-day goods slathered with Chrysler Group brand names. The second funniest? The products themselves. The Chrysler Collection features such “luxury gifts” as an $11.95 leather calculator, a $199.95 mahogany humidor, and a $21.95 mini umbrella, all tagged with Chrysler’s new Aston-alike logo and doubtless finished in the same fine materials as the Sebring’s interior. If Davos had a Wal-Mart, this is what they’d sell.
Carscoop dug up these drawings from a Chrysler patent filing for the Dodge-branded version of the forthcoming 2011 Jeep Grand Cherokee. Autoblog figures Dodge will drop the Durango name in favor of resurrecting the Magnum moniker, though given that model’s distinct lack of success, that would be a questionable strategy. On the other hand, the Durango name doesn’t have a lot of tread left on it either… but then what Chrysler Group nameplate does? [UPDATE: Grand Cherokee pricing/trim levels apparently leaked here, with prices reportedly ranging from $31,480 to $45,770 ]
Today’s review of the Fiat Bravo is more than just a unique look at a European-market vehicle that will never be sold in the United States: it’s an(other) early look at the future of Chrysler. Sergio Marchionne has called the C and D segments “critical” for US-market success, and the C-Evo platform that lies beneath the Fiat Bravo tested today, will form the basis for planned 2012 replacements to the Caliber and PT Cruiser and possibly the re-launched Sebring and Avenger (reportedly in stretched form). Indeed, the Lancia-trimmed version, known as the Delta, was shown at the Detroit Auto Show in Chrysler-brand drag, apparently to prove how easy these rebadges will be. As cynical as this might seem, Mr Bronfer’s relatively positive review leaves little doubt that Fiat’s got more to offer the C and D segments than the aging, neglected Mitsubishi platform that currently underpins Chrysler’s offerings in these classes. In that sense, this is some of the most positive news we’ve heard about Chrysler’s future in a while.
Chrysler sales in January of 2009 were “Medusa class” ugly [down nearly 55 percent] in the always-apt words of one Robert Farago, which makes the Pentastar’s January 2010 sales [PDF release here] whatever 8 percent uglier than Medusa class is. The Chrysler brand was down 2 percent, with only the Sebring (+85%, 3,593) and Town & Country (+6%, 4,531) in the black. Jeep fell 8 percent despite growth in Compass (+52%, 1,244) and Grand Cherokee (+6%, 3,311) sales. Dodge was up one percent on strong growth from Avenger (+44%, 3,134), Journey (+55%, 4,790) and Caravan (+34%, 4,298), and the Ram brand fell 25 percent, with Ram pickup volume dropping below 10k units. Fugly? Heinous? Tragic? Pick the adjective you’re most comfortable with.
Having re-birthed themselves at the taxpayers’ expense, one of Chrysler’s top priorities is restoring the brand equity that has bled out since the Daimler takeover. First up was the move to spin “Ram” off as its own brand, and now it seems that no-one is safe from “re-birth,” as UPI.com reports that Chrysler are rethinking their strongest brand, Jeep. Unfortunately, one man’s brand rebirth is another man’s brand betrayal. Chrysler want to replace all of Jeep’s products, except for the Wrangler and Grand Cherokee, and the idea is to utilise Fiat’s experience of fuel efficient engines as the basis for it. That means Jeep is likely to become smaller, more fuel-efficient and less off-road capable [rumors of a Fiat Panda 4×4-based Jeep (rendered above) date back to the earliest days of the Fiat-Chrysler alliance]. If you had to boil the proposed shift into a single word, UPI figures it would be “soft.” And the markets have reacted to this news in pretty much the same way you’ve probably just reacted: they think the idea is bad. Very bad.
About half of all dealers culled in the GM and Chrysler bankruptcies have filed for congressionally-mandated arbitration, reports Automotive News [sub]. 409 of the 789 culled Chrysler dealers and over 1,000 of the 2,000 culled GM dealers have paid the $1,625 to file for arbitration, and will move into the next phase of the process: agreeing on an arbitrator. Having threatened to sabotage the process with a lawsuit on constitutional grounds, it’s a bit of a surprise to see Chrysler suddenly validating the arbitration process,but that’s what appears to be taking place. Chrysler tells AN [sub]:
The company looks forward to the expeditious completion of the process. A robust dealer network is a critical component of the group’s strategy of rebuilding a strong and resilient American automaker
Representatives of the culled dealers are optimistic that many could be reinstated when arbitration wraps up in June, but only if Chrysler continues to approach the arbitration process with an open mind. Whether that happens or not will be clear as the process goes on.
Based on these teasers for Dodge’s much-anticipated 60-second Super Bowl ad, we’d have to say they’re still working it out. One thing is for certain: if the point of spinning off the Ram brand was to broaden Dodge’s appeal, the new ad wizards aren’t trying hard enough. The ad above, like most of the latest tranche of Dodge ads, is from the old-school, knuckle-dragging, truck-alike, gender-role-based marketing school. In short, the new Dodge is nothing new… (Read More…)
We’ve spilled a few pixels on these pages over Hyundai’s dedication to direct injection (DI) technology, even going as far as to crown Hyundai the “new Honda” of motor technology. But DI technology isn’t without its downsides, and Hyundai tells Automotive News [sub] that the technology isn’t likely to appear on future engines with less than two liters of displacement.
The deadline for culled dealers to apply for congressionally-mandated arbitration is midnight tonight, so if you lost your Chrysler or GM dealership in last year’s bankruptcy cull, you’d best get cracking. The Detroit News reports that at least 1,200 of the roughly 3,000 culled dealers had applied for arbitration, according to the American Arbitration Association. That number is expected to creep rise even higher by the time the deadline expires. Many observers had expected arbitration applications to be much lower, as GM and Chrysler had dragged out the proceedings, forcing many dealers to shutter their shops. GM has already reversed the closure of 80 dealers and Chariman/CEO Ed Whitacre has said he expects “hundreds” more to be reinstated in arbitration. Chrysler continues to take a hard line on the issue, a stance that is sure to make its arbitration proceedings considerably more tense.
Automotive News [sub] quotes CAW President Ken Lawenza as saying “supplier challenges” have shut down production of the Chrysler Group’s minivan plant in Windsor, Ontario. Chrysler confirmed that the plant would be closed until February 1, but refused to elaborate on the circumstances. According to Lawenza, “the reason is because if a supplier never lived up to their contract, then it could be legal ramifications. We let those guys hash it out legally.” The President of CAW Local 444 Rick LaPorte adds “it’s a piece for the key fob, so my understanding is that it’s a raw material issue. The good news is that it’s not an inventory adjustment problem or a lack of sales; it’s a good problem to have.” You know, relatively speaking. (Read More…)
It turns out the old girl just needed some new paint. Chrysler Group marketing boss Olivier Francoise takes us through the high points of the Chrysler lineup… in under two minutes. Yup, that about covers it.
Now that Japan has said kankei nai ne (who cares, not worth the trouble) and opened their cash for clunkers program to American imports, even if they did not go through mandatory homologation, and even if they weren’t rated by the Japanese government to get 35.5 mpg or better, which car is the first to qualify? You are looking at it – very closely. It’s a, it’s a, it’s a … (Read More…)
Chrysler/Fiat CEO Sergio Marchionne has a handful of brand management on his plate, as he aligns his two firms for the future. Merging Lancia and Chrysler was an obvious move; creating one full-line brand (albeit with different names from market to market) is a lot better than trying to keep two distinct brands, although even with their powers combined, Chrysler/Lancia is going to have an uphill struggle. With Lancia “taken care of,” the biggest problem on Fiat’s plate is Alfa Romeo, which has reportedly lost €200m-€400m per year for the last decade.
“In Europe, Lancia is an undersized, underdeveloped brand, with nothing bigger than the Delta. Chrysler, which has a true global reach, has nothing smaller. Put them together and you have a full line-up,” is the short version of Sergio Marchionne’s plans for the Chrysler and Lancia brands. The surprising bit [via Autocar]: “we could see the two converge as early as the end of the year.” For Americans this means that some of the holes in Chrysler’s lineup could be plugged up by rebadged Lancias along the lines of the Delta shown at the Chrysler stand at the Detroit Auto Show. And hey, who are we to say no to all-new Chrysler products? Goodness knows the brand needs something new besides special edition lipstick on the same old pigs. There’s only one hitch…
A strong team is only as good as its weakest link, particularly in the automotive industry. Treat your suppliers well and they’ll play fair by you. Try to screw them and they’ll collapse leaving you with serious production problems. Detroit (Chrysler in particular) had the worst reputation for treating their suppliers badly, but the Pentastar brand now claims to be trying to change all that.
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