Chrysler doubling retail expenditures per vehicle

To start repositioning its brands, Chrysler is doubling the amount it spends on retail costs per vehicle, according to disclosures made in the five year plan discussion. Chrysler, which had cut discretionary ad spending (such as Google placements) for months before the plan, started running new campaigns just before, and appears to have increased its ad buys since.  The new Jeep campaign was, a day after the five year plan was announced, running across New York City, with Pennsylvania Station covered in banners that proclaimed “Jeep – enjoying the ride no matter who you’re with” and, localized for the city folk, “Jeep – knowing subway wind is not real wind.” The latter is consistent with targeting “aspirational” Jeep buyers.

Jeep’s largest group of owners is “Dreamers,” time constrained by family and work, but wanting authentic gear for the time they’ll be able to “do more and dream less.” The new campaign is “i live. i ride. i am. Jeep.” (e.e. cummings joke goes here.) The plan is to re-establish the brand with a new look, feel, and attitude; renew the customer-brand connection with lifestyle engagement; and deliver a clear call to sales action.

Jeep is aiming to double its global sales from 2008 numbers, and its leader, Mike Manley, wants to take it “back to its rightful place of being the global SUV brand.” Jeep was apparently the largest SUV brand in the world through 1990 and today is #6 in the world. Wrangler remains the anchor of the Jeep brand and will be refreshed in both 2010 and its 70th anniversary, 2011. There will be new derivatives and special models based on the Wrangler.

Core Jeep customers were truck-based, wanting capability and 4WD. Expanded SUV customers want unibody vehicles, fuel efficient, with on-road dynamics. The shift from truck to car based SUVs is growing. All Jeeps must have certain aspects; volume models have specific attributes in addition. (These attributes include the grille, short overhang, trapezoid wheel-arches, functional interior, open-air concepts, visibility, durable materails, handling in bad weather, advanced four wheel drive, towing capacity, and a variety of specific off-road capabilities.)

International products: Chrysler to remain

Distribution. Most of the international outlets are joined with Daimler. Sales will be integrated into the Fiat organization in Latin America and Europe to provide full support. In Asia, Chrysler has been more self sufficient and will provide its distribution structure to Fiat.

International product development. Jeep will be expanded in international market. Chrysler and Dodge have been spread thinly. In the future, a global portfolio of vehicles will cover 2/3 of global market segments with powertrains that reflect international demand. There will be B and C segment hatchbacks, minivans, and CUVs for Dodge and Chrysler, which will dovetail with Jeep vehicles.

Both Lancia and Chrysler have similar problems, including incomplete portfolios, limited distribution, low brand recognition. The alliance can selectively used either the Lancia or Chrysler brand in any given market for a better focus — with a full market portfolio in each market. The Dodge and Ram brands will continue in appropriate markets as regional or niche brands. Chrysler models will be offered to Fiat for distribution under Fiat brands to give Chrysler access to more volume. Chrysler Australia will move to Iveco.

Financial services are already moving from Daimler.

Jeep expansion will include five global models.

These plans contrast with major media predictions based on “leaks.”

For more and for updates, see the Five Year Plan page.

Chrysler five-year plan in progress

Chrysler’s five year plan is being unveiled, with a limited-entry webcast on Chrysler LLC’s corporate web site, constant updates at Automotive News, and frequent updates here at allpar.com. The plan will take around five hours to describe.

The plan is for a complete repackaging of all current vehicles, with new options mixes, by the end of the fourth quarter of 2009. A complete overhaul of branding, marketing, positioning, and point of sale is to be completed by the end second quarter of 2010.

Follow our regularly updated page at http://www.allpar.com/corporate/chrysler-group/five-year-plan.html

Editorial: Chrysler’s future

For an analysis of Chrysler’s future, see this recent weblog entry.

WSJ claims scoop of Fiat-Chrysler plan

According to the Wall Street Journal, which claims access to people who have seen Fiat’s plan for Chrysler, many of the recent rumors regarding current models are incorrect, and Chrysler will incorporate more Fiat Group products than expected.

Vehicles planned for the US, according to the Journal article, include a replacement for the Chrysler Sebring, based on a Fiat design. The PT Cruiser, Sebring, Avenger, Compass, Caliber, and Patriot will all have their final year in 2012, with even the popular Dodge Caravan ducking out; the Chrysler Town & Country will be Chrysler’s sole minivan, according to the article, though historically the Caravan has sold better.  The Nitro will also be dropped.

Marketing for the Fiat 500 is unclear; the article claims it will not use the Fiat name but “will be marketed as the 500.”

Alfa Romeos to be sold in the US starting in 2012 include the MiTo subcompact hatch, a midsized sedan, and the Milano, all to be made in North America. Chrysler will start up a Sebring replacement and compact sedan in 2012 and a compact Fiat-based Jeep in 2013, they say.

To be kept are the Dodge Challenger and Dodge Charger.

Under this plan, Dodge would be strictly muscle cars and trucks, while Chrysler would take over the “Chevrolet – Plymouth – Ford – Toyota” position as the “everycar” brand. No mention was made of plans to move Chrysler upscale, which were announced by the former head of the Chrysler brand shortly before he resigned.

Jeep pitching J8 to U.S. military

According to The Age, an Australian newspaper, Jeep is angling for a chance to re-enlist in its old outfit, the United States Army.

While Jeep M175 trucks served in the military through the Vietnam War, the M38 Jeep, successor to the original “truck, 1/4-ton, reconnaissance” (general purpose came later) MA and GPW, was mustered out after 20 years of service beginning in 1960 when it was replaced by the Ford M151 “MUTT.”

At the recent Association of the US Army’s annual conference, held earlier this month in Washington, D.C., Jeep Government and Military Sales (JGMS), a subsidiary of Great Britain’s Jankel Group, showed a prototype of the Jeep J8 Light Patrol Vehicle (LPV) decked out with olive drab paint and a brace of machine guns. Chrysler Group appointed JGMS as the worldwide J8 distributor for government and military sales. JGMS has already built prototypes of J8’s equipped for various missions.

JGMS is marketing the J8 LPV to the Department of Homeland Security as a border patrol vehicle and to the military as a command vehicle, patrol or scout vehicle. personnel transport or cargo carrier. An ambulance version is under development.

The J8, which can’t be sold in the U.S. as it doesn’t meet emissions standards, is built by a joint venture of Chrysler and Arab American Vehicles Company at AAV’s plant in Cairo, Egypt. Some are also built by Automotive Industries Ltd. of Nazareth, Israel where it is called the Storm 3 and will be in service with the Israeli Defense Force as a command vehicle. Chrysler says if there is a demand for the J8 for American government sales, an EPA-compliant version could be built in the United States.

Thanks to Jeep News Now for the tip! Photo: Jankel Tactical Systems.

TAWA gives top honors to Heavy-Duty Ram, Dakota and Patriot

The Texas Auto Writers Association named the Heavy-Duty Ram Pickup the “Heavy Duty Pickup Truck of Texas” at their annual truck Rodeo. At the event, held outside of San Antonio this year, the Dodge Dakota was selected “Mid-Size Pickup of Texas” and the Jeep Patriot earned the “Compact SUV of Texas” title.

Selections were made by the 40+ TAWA members, all of whom are working automotive journalists, after two days of on- and off-road trials. All entries are evaluated on performance, styling, comfort and real-world utility.

“The TAWA Truck Rodeo is the most comprehensive evaluation of new trucks and SUVs in the country and manufacturers consider it a great honor to win their category,” Harold Gunn, President of TAWA, said. Gunn also noted, “The wins for Ram Heavy Duty and Dodge Dakota are significant because our truck rodeo offers journalists a chance to judge vehicles in side-by-side comparisons and these top awards were given based on individual impressions and by secret ballot.”

“We’re very proud of these awards; they affirm our leadership in the truck market,” said Fred Diaz, CEO for Dodge’s Ram Brand, said. “In a head-to-head competition, our all-new 2010 Ram Heavy Duty un-seated last year’s winner, right in the pickup truck capital of the U.S. Ram is not only the best heavy-duty truck we’ve ever built; it’s the best heavy-duty truck on the market, hands down. We’re also proud that the Dodge Dakota won its category, affirming Dakota’s capability and versatility.”

Michael Manley, CEO – Jeep Brand, echoed Diaz’s comments. “This is certainly an honor for Jeep. We’re proud the Patriot proved its off-road prowess at the Texas Truck Rodeo. The Trail Rated® Jeep Patriot 4×4 is hands down the most capable and affordable SUV in the compact segment.”