November 6th, 2009 by Bill Cawthon
Fred Diaz, President and CEO of the new Ram brand, sent a communique to dealers outlining what’s happening as the new brand is introduced.
In his letter, Diaz noted the Ram 1500 pickup, which has earned more awards than any other full-size pickup on the market today, is being positioned to be highly price-competitive in the market. Diaz also noted the new Heavy-Duty Ram 2500/3500 pickups are on their way to dealers and the 4500/5500 Class 5 chassis cabs are coming next spring.
Chrysler has put together a strong media package to roll out the brand and increase awareness. The new “My name is Ram” ad, one of the best image ads Chrysler has produced in years, began running last night and the promotion will continue through traditional media, including print, and online.
Diaz’s letter, dated November 4, was timed to coincide with the presentation of Chrysler’s five-year plan and answer some dealer questions about factory support.
November 5th, 2009 by Bill Cawthon
The new Chrysler and Dodge logos will not be appearing on cars destined for the European market after 2011. Instead, cars sold in the North American market as Chryslers and Dodges will be badged as Lancias and Fiats. The move is designed to save money by reducing distribution costs.
The Chrysler Voyager minivan will appear as the replacement for the Lancia Phedra and hte next-generation 300C will be sold as the successor to the upscale Lancia Thesis. The next Sebring and the new midsize crossover will also wear Lancia badges. The Dodge Journey will become the replacement for the large Fiat Ulysse minivan and the Fiat Chroma will be a re-branded version of the upcoming Dodge mid-size sedan.
As was confirmed yesterday, Jeep will be hte only CHrysler brand that will be sold in Europe under its own name.
November 5th, 2009 by DaveAdmin
Jeff Tramontano pointed out that this photo from the Five Year Plan, presented with the label “Future Product Philosophy” and the Dodge logo, might well be the 2012 Dodge Charger. (See the2012 Dodge Charger page for a larger photo.) He wrote, “Page 31 shows a shot of something that looks somewhat like the 1999 concept CNG car but it’s very different, i.e. gas cap, door handles, C pillar and window split not to mention wheels are different.”
November 4th, 2009 by DaveAdmin
CEO Pietro Gorlier. Mopar continues to look into other channels including wholesale retail, independent repair shops, and collision parts with a price matching program. Mopar has been adding techs and service advisors, and developing an “express lane” system for immediate service on their car, as well as adding a market-driven smart pricing program. Accessories are now being designed during vehicle development, engineered to ease installation, with availability at vehicle launch. The goal is for 80% of dealers to have weekend and extended hours for service. A new wiTech (wireless) diagnostic system is being added, with new wiring diagram applications (the first dynamic wiring information system, a design driven by technicians and using vehicle-specific on-demand information). The parts network reorganization should save 13% of trips. A wave of actions started in June 2009 to improve parts distribution logistics.
2009: fix the basics; 2010: target industry benchmarks, enforce dealer standards; by 2012, become best-practice so customers view the service organization as an asset.
Quality of customer care drivers: brand-customer interface (product, customer care center); dealer-customer interface (sales, service, parts/accessory experiences). Rigorous key performance indicator process needed to drive success, excellence can only be achieved when everything exceeds customer expectations. There must be proactive customer support and a closed-loop approach with follow through. (This echoes the old Five Star program as it was originally designed.)
A single U.S. toll free number will be created for each brand, Chrysler,
Dodge,
Jeep, and Ram, to customize the owner experience – 800 CHRYSLER, 877-I-AM_Jeep, 800-4aDodge, and 877-RAM-5720.
CEO Pietro Gorlier. Mopar continues to look into other channels including wholesale retail, independent repair shops, and collision parts with a price matching program. Mopar has been adding techs and service advisors, and developing an “express lane” system for immediate service on their car, as well as adding a market-driven smart pricing program. Accessories are now being designed during vehicle development, engineered to ease installation, with availability at vehicle launch. The goal is for 80% of dealers to have weekend and extended hours for service. A new wiTech (wireless) diagnostic system is being added, with new wiring diagram applications (the first dynamic wiring information system, a design driven by technicians and using vehicle-specific on-demand information). The parts network reorganization should save 13% of trips. A wave of actions started in June 2009 to improve parts distribution logistics.
In 2009 they plan to fix the basics; in 2010 to target industry benchmarks, enforce dealer standards; and by 2012, to become best-practice so customers view the service organization as an asset.
Quality of customer care drivers: brand-customer interface (product, customer care center); dealer-customer interface (sales, service, parts/accessory experiences). Rigorous key performance indicator process needed to drive success, excellence can only be achieved when everything exceeds customer expectations. There must be proactive customer support and a closed-loop approach with follow through. (This echoes the old Five Star program as it was originally designed.)
A single U.S. toll free number will be created for each brand, Chrysler, Dodge, Jeep, and Ram, to customize the owner experience – 800 CHRYSLER, 877-I-AM_Jeep, 800-4aDodge, and 877-RAM-5720.
November 4th, 2009 by DaveAdmin
Expectations are for units sold to more than double from 1.3 million in 2009 to 2.8 million in 2014. All brands are seen as growing, particularly Jeep and Chrysler (which sell fewer vehicles now, and are projected to double their sales). US market share is expected to go from less than 9% in 2009 to over 13% in 2014. Dodge is focused on repositioning rather than growth. Retail expense per unit will double to support the repositioning of the brands. Chrysler is to break even by 2010 (operational) and by 2011 (net). All loans are to be paid by the end of 2014. Product spending are to average $4.5 billion per year with $23 billion overall (Capex of $15 billion). There would still be $2 billion of DoE debt at the end of 2014. $2.3 billion in loans have not been drawn. Shipments are to be adjusted by 600,000 vehicles per year partly by restocking dealers and partly by resuming fleet sales.
More details and updates are on the Five Year Plan page.
November 4th, 2009 by DaveAdmin
CEO Olivier Francois. “Why would a Frenchman who works for an Italian company work for an American company in Michigan?” (His question.) Sometimes distance gives perspective. “The pathway is passion. … to make hearts race with every glance. It is an American sensation.” (He went on for a while like this.) “A visit to the Chrysler museum is such an experience.” Lancia was in a similar condition as Chrysler when he came. He started with a 4% market in Italy with six nameplates, in 2009 at 4.8% with four nameplates. Lancia focused on three basics, product, marketing, and network. In the US, Chrysler has five nameplates with total 1.8% share, looking for 3.4% share with more nameplates by 2014. “It’s about 84 years of history.” Comfort, performance, styling, innovation, quality, value, efficiency. Walter P. Chrysler: “I gave the public quality, beauty, speed, comfort, style, and power, all at a low price.” Quality, value, and efficiency require hard work but the rest is also needed for Chrysler. New ads: “It’s time to reignite the American dream. Let’s make cars people want to make out it. Cars people want to have their photos taken in. It’s time, once again, for America to arrive in style.”
Coming in Q1 2010: 300 Sport edition, Town & Country Fashion Edition,
PT Cruiser Final Edition, Sebring Ocean Edition. This indicates the
PT Cruiser will not continue past 2010 after all. Coming in Q4 2010: reshape the Sebring and refresh Town & Country.
Chrysler’s ambition is to be distinctive at all these levels. The new attributes must be established. Refined, balanced performance, provocative styling, intuitive innovation, craftsmanship, pride/value, efficiency — responsibility as well as mileage. We need to expand the portfolio, improve quality, create exciting designs.
Chrysler’s ambition is being different, remembered, and aspirational, not mimicking another automaker; and having an integrated image across the board, products, merchandising, showrooms, auto shows, advertising, catalogs, web sites. Everything must reflect aspiration. Brochures should be aspirational and elegant. 40 million visits so far to chrysler.com — “Paradise or Hell for our brand image?” — no brand image on the existing site; a new site goes live in a few days. It will set a new tone for the brand. New showrooms coming, too. New car show displays are on their way. New catalogs are done. New product is coming. New advertising is coming. “We have done this in one month but the bigger work is to be done.”
Mainstream shows and events are expensive but have low visibility. It is time to find new methods. It is time to present new vehicles like models on a runway, not a highway. There’s also a new logo. Brand equity must be increased. Chrysler will stand one notch above everyone else. Chrysler will however also have B, C, and D segment cars as well as the CUV.
CEO Olivier Francois asked, “Why would a Frenchman who works for an Italian company work for an American company in Michigan?” “The pathway is passion. … to make hearts race with every glance. It is an American sensation.” (He went on for a while like this.) “A visit to the Chrysler museum is such an experience.” Lancia was in a similar condition as Chrysler when he came. He started with a 4% market in Italy with six nameplates, in 2009 at 4.8% with four nameplates. Lancia focused on three basics, product, marketing, and network. In the US, Chrysler has five nameplates with total 1.8% share, looking for 3.4% share with more nameplates by 2014. “It’s about 84 years of history.” Comfort, performance, styling, innovation, quality, value, efficiency. Walter P. Chrysler: “I gave the public quality, beauty, speed, comfort, style, and power, all at a low price.” Quality, value, and efficiency require hard work but the rest is also needed for Chrysler. New ads: “It’s time to reignite the American dream. Let’s make cars people want to make out it. Cars people want to have their photos taken in. It’s time, once again, for America to arrive in style.”
Coming in Q1 2010: 300 Sport edition, Town & Country Fashion Edition, PT Cruiser Final Edition, Sebring Ocean Edition. This indicates the PT Cruiser will not continue past 2010 after all. Coming in Q4 2010: reshape the Sebring and refresh Town & Country.
Chrysler’s ambition is to be distinctive at all these levels. The new attributes must be established. Refined, balanced performance, provocative styling, intuitive innovation, craftsmanship, pride/value, efficiency — responsibility as well as mileage. We need to expand the portfolio, improve quality, create exciting designs.
Chrysler’s ambition is being different, remembered, and aspirational, not mimicking another automaker; and having an integrated image across the board, products, merchandising, showrooms, auto shows, advertising, catalogs, web sites. Everything must reflect aspiration. Brochures should be aspirational and elegant. 40 million visits so far to chrysler.com — “Paradise or Hell for our brand image?” — no brand image on the existing site; a new site goes live in a few days. It will set a new tone for the brand. New showrooms coming, too. New car show displays are on their way. New catalogs are done. New product is coming. New advertising is coming. “We have done this in one month but the bigger work is to be done.”
Mainstream shows and events are expensive but have low visibility. It is time to find new methods. It is time to present new vehicles like models on a runway, not a highway. There’s also a new logo. Brand equity must be increased. Chrysler will stand one notch above everyone else. Chrysler will however also have B, C, and D segment cars as well as the CUV.
Still no word on 200C but the product plan is still coming.
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