O/T: Talking Cars Tuesday: The Death of Chrysler?

Submitted by JFW on January 21st, 2020 at 10:51 AM

I read an article today in which different analysts suggested that the merger of FCA and PSA would end up eliminating chrysler. The 300 hasn't been touched and likely will be retired soon; leaving Chrysler with 1 product; the Pacifica. Not much to go on. 

I admit this makes me sad. My car buying history has split between Chrysler (products) and Ford; and honestly I've had good luck with all the brands. I put 190K miles on a Dodge Intrepid; 205K on an XJ, 240K on a ZJ (God I loved the 318); and 205K on my old Five Hundred. Now I have a 300 AWD that has the 8spd/3.5 liter and I get 30 on the Highway and 21 around town. The biggest problem in them all was that they all rusted out at the end. Most of my uncles worked for either Ford or Chrysler. 

I'm bummed by the loss of Chrysler if it happens, but without them putting money into product, and without them having any SUV's, I just don't see it happening. 

So, what about it, those in the know; any chance Chrysler could get resurrected with the infusion of cash in an attempt to get more margin on some brands? I'd love to see an upscale version of something built on the Cherokee platform; and Durango platform. Maybe try again with the Alpine? 

I'm not a fan of SUV's or wagon's so much anymore; but I don't know that you can build a company with a future around Jeep and RAM. 

JeepinBen

January 21st, 2020 at 11:10 AM ^

FCA's brands with cars on sale in the US today:

  • Chrysler (2 vehicles, 300 & Pacifica/Voyager)
  • Dodge (4 vehicles, Charger, Challenger, Journey, Durango)
  • Jeep (6 vehicles, Renegade, Compass, Cherokee, Grand Cherokee, Wrangler, Gladiator)
  • Alfa Romeo (2 vehicles, Giulia & Stelvio)
  • Fiat (1 Vehicle, 500X)
  • Ram (2 Vehicles, 1500 & 2500/3500)

I'd argue that they're trying to figure out what they're doing with the Chrysler, Dodge, Alfa and Fiat brands in the US.

drjaws

January 21st, 2020 at 11:28 AM ^

Not much to figure out with RAM.  Hugely popular and profitable.  RAM is primarily responsible for Fiat-Chrysler profits, and is getting more of the "pickup" market share.  In fact, GM market share is decreasing just as rapidly as RAM is increasing.  RAM has also been ranked #1 in interior layout and #2 in technology for pickups.  Basically, it's a great truck that is carrying the Fiat-Chrysler brand and keeping it afloat, even moreso than Jeep.

Links here and here ... note second link is a freep story.  

The Mad Hatter

January 21st, 2020 at 11:47 AM ^

Tesla is way overvalued, but their cars are sweet to drive and if they can fill out their product line before the money runs out I think they'll eventually be one of the largest automakers.

Also my best friend works there and he made a ton of money on his stock options.  So that'll get me a free trip to California sometime soon.  Which is nice.

MaizeAndBlueWahoo

January 21st, 2020 at 1:31 PM ^

It's pretty much appalling to me that they're allowed to get away with outright stating that they're "beta testing" their systems with consumers.  They figure that's OK because that's what you do with software, their consumers are OK with it because they'll put up with incredible amounts of abuse from Tesla, and regulators are OK with it because ???????

thethirdcoast

January 21st, 2020 at 2:34 PM ^

From this list it really appears that FCA is *trying* to make each brand distinct and appealing by having very little overlap among vehicle types.

RAM is obviously trucks, Jeep is SUVs, Dodge is performance sedans/minivans, Alfa is Euro sports sedans, Fiat is tiny cars, and Chrysler is supposed to be luxury sedan/minivans.

I think it's a good strategy, and stands in opposition to the traditional the General Motors strategy, which is to try make every brand they have offer every type of vehicle, which is why you have Chevy SUVs, Buick SUVs, GMC SUVs, etc.

DelhiWolverine

January 21st, 2020 at 4:40 PM ^

I agree with you on sedan being dead. But until they can design a SUV that seats as many as a minivan AND carries as much stuff in the back, the minivan is here to stay.

It isn't sexy, but I can haul around more stuff in the back of my minivan than I could in any but the very largest of SUVs out there. That matters a ton.

stephenrjking

January 21st, 2020 at 12:00 PM ^

Some people seem to be misinterpreting the phrase "death of Chrysler" to mean "death of the entire car company under the larger international umbrella." That's understandable, since to Michigan folk "Chrysler" tends to be shorthand for the larger Big 3 company.

But what this appears to be discussing is simply the elimination of the Chrysler brand as a make of vehicle. The discussion is not, "will Chrysler/Dodge/Ram/Jeep fold," but, "will this international corporation bother keeping a brand alive to sell one vehicle?"

Old makes are disappearing, of course. Plymouth, Oldsmobile, Pontiac, Mercury... there just isn't a need for them anymore. 

For my lifetime, Chrysler has been the producer of somewhat nicer cars, meant to appeal to people who want a car that was more luxurious than a Chevy Lumina or a Ford Taurus, but not as fancy or expensive as something like a Mercedes. There used to be room for that kind of product, but there just isn't anymore. 

The stuff that people buy, SUVs and crossovers and halo stuff like muscle cars, are still made and sold by the company, but under different nameplates. Dodge has cultivated a sportier image, while Ram has been spun off into its own brand. Jeep has a market that it will never lose. The Pacifica is really the only unique Chrysler product that is left, and even that isn't as popular as perhaps it should be. 

If the brand goes, I'll be sad. The company is fine. 

Eng1980

January 21st, 2020 at 12:50 PM ^

Not sure why this was negged.  There were something like 2,000 automobile companies in 1910 (throw an engine on a wagon.)  The car became a commodity at the time of the 70’s energy crisis.  (Don’t know if Toyota knew this but they were the first to stop trying to re-design and just focus on doing it over and better.). Cars are no longer personal statements as much as transportation.  Brands aren’t as helpful as they once were)

Dr. Detroit

January 21st, 2020 at 4:01 PM ^

If you look at Chrysler historically, the brand itself was just Walter Chrysler slapping his name on a failing brand he bought (Maxwell) and lucking into buying Dodge when both brothers died in a short time period.  Without the superior engineering built by the Dodge brothers, Chrysler would have failed.  Chrysler himself wasn’t a car guy, nor a Detroit guy.  He was a New York investor, which is why the Chrysler Building was there and there was never a major Detroit area headquarters until they built that big taxpayer funded one in Auburn Hills.

cKone

January 21st, 2020 at 12:10 PM ^

I somewhat agree with you.  I have a lot of family that works for Ford, but  I love my Jeeps.  I am hoping that the new Bronco coming next year creates a new rivalry that pushes Jeep and Ford to keep looking at new and innovative ways to one-up the other.  

If the Bronco ends up being great I am going to have to give it serious consideration since it's hard to pass up an A Plan on the right vehicle. 

From everything I am reading the Bronco is being designed as direct competition for the Wrangler (Removable Roof/Doors, Bolts vs. clips for easy installation of aftermarket parts, etc).  I never buy a first year production car, but I'm currently in a 2016 Wrangler so I have some time to let the bugs get worked out.

 

mgobaran

January 21st, 2020 at 1:24 PM ^

Seems to me competition is heating up. Detroit has 2 EV companies (Rivian & Bollinger) bringing SUVs/Trucks to the market in the next year or two. All signs point to being able to purchase cars on Amazon soon, opening up the ability to purchase more cars/brands in America then ever before. 

I guess it sucks that we are losing a mini van from the market, but I don't know what they add now that a larger SUV doesn't.

Bodogblog

January 21st, 2020 at 11:04 AM ^

If you can make the fuel economy work, the best company future you can have is with just SUVs and trucks.  They're profit machines.  

Battery vehicles and autonomous vehicles cloud the horizon of this space for the intermediate and long term, but if you're talking about combustible engines - and you can make hybrids worthwhile to meet CAFE standards - this is a great strategy.  No use setting money on fire on cars that no one wants to buy.  

JeepinBen

January 21st, 2020 at 11:05 AM ^

The question is what is the Chrysler brand? What's the goal? Is it a BMW fighter like Cadillac? You've got Alfa Romeo for that. Is it US luxury like Lincoln to fight Lexus? That hasn't gone well for anyone.

Fancy SUVs? Jeep has that covered - the Grand Wagoneer is supposedly going to compete with a Range Rover.

Sporty cars? Isn't that what Dodge should be?

Phaedrus

January 21st, 2020 at 12:38 PM ^

That’s because they’re just Toyotas dressed up to look nice. They still drive like Toyotas.

The one thing that most companies haven’t been able to replicate when trying to compete with Mercedes and BMW is the driver experience. That’s because most other high end brands are just econo-boxes with fancy trim packages. Cadillac was the one exception, but they’re starting to share a lot more with other GMs than they did in the past. 

thethirdcoast

January 21st, 2020 at 2:40 PM ^

Lexii are driver's cars for people who don't like driving or cars.

Agree about Merc and BMW, but the current BMW oil setup on their I4s and I6s is terrible. Guaranteed to leak and require $800-$2k in repairs after 30-40k miles. BMW should just stop making V8s.

The Cadillac sedans handle so well because the Caddy chassis is a late-model 3-series chassis knockoff. The don't sell well because traditional buyers aren't looking for sports sedans and they didn't do a great job marketing to the traditional Merc/BMW/Audi buying demographic.

thethirdcoast

January 21st, 2020 at 6:02 PM ^

That is correct.

BMW says, "10k miles between oil changes, give or take, no problem!" on these high-boost engines because they are trying to save money on their comprehensive warranty program. It's cheaper for them to stretch that service interval and deal with a few engine failures than recommend everyone come back on a 5k interval.

Any good independent BMW mechanic will tell you, "oil changes every 5k miles, like clockwork."