Don’t believe a word of it!

The Wall Street Journal scooped everyone on the Five Year Plan, or so it seemed. The next day, an automotive news outlet of great repute came out with an equally incorrect but consistent story based on “informed sources.” Finally, someone who certainly knows Auto Task Force insiders came out with another consistent story which would relegate Chrysler to minivans and trucks. It might still be true, but only if you consider the basic platforms – an important part of the vehicle but not necessarily the MOST important part. After all, consider that the Reliant, Daytona, Imperial, and minivan were all based on the same basic platform (they did not have the same platform but they were all based on the same platform).

Here’s our story on the Journal’s story:

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.

Now, a lot of this is true. What isn’t? The Dodge Grand Caravan will remain, and be redesigned in 2014. The Nitro’s fate is unknown. Liberty will move to a Fiat platform. Fiat 500 will be called the Fiat 500 and will use the Fiat name.  Dodge will get new cars, based on Fiat designs – with one actual Fiat imported without changes (beyond what is needed for sale in the US).  Chrysler will indeed be moving upscale, if not in price then in image.

Above all, the engineering staff is going to be increased. And, while the charts do show numerous Fiat platforms coming to the US, to the point where 50% of Chrysler’s vehicles will be Fiat-based, the charts also differentiate between vehicles made by Fiat and imported “as is,” and those re-engineered by Chrysler to meet their own needs. Whether this is a sheet-metal-and-shock-absorber deal or a true re-engineering, we don’t know. You can build very different cars on a single platform – Audi TT vs Volkswagen Jetta, anyone? Camaro vs G8 or Nova? Mustang vs Ford Fairmont? Belvedere Six vs Hemi Superbird?

The second media outlet claimed that Chrysler and Dodge would disappear outside of North America. It now appears that Chrysler will continue in Asia, and in other markets Chrysler and Lancia will alternate; while Dodge will still be used here and there, sparingly. There is a lot more sharing going on than one would expect.

Oh, and the amount of money going to Fiat… remember all those billions in consulting fees going to Mercedes, for “sharing” their lovely previous-generation-but-still-expensive technologies? Fiat has so far gotten $0.  What’s more, they haven’t shifted everything to Italian suppliers. Mainly, though –

For the first time since Daimler first took over, an increase in the engineering staff was announced.

Wow.<

Maybe it’ll work out after all.

The cynics were wrong, and so were we… sort of.

Going on information from other media sources, we had a moderately dark view of Chrysler’s future in our last weblog entry. Chrysler’s engineering staff will be increasing in size in the short term, not as much as needed for a full line, but still better than the usual cutbacks.

While there are questions unanswered about the source of small and midsized cars for Chrysler, there are also many sources for optimism. Chrysler has been designated Fiat’s source for large-displacement engines, V6 and up, hybrids, and electric cars. Cummins appears to be in place for future Ram trucks, the Hemi will continue with improvements, and the four-speed automatic will disappear. It also appears that the Mercedes five-speed automatics are a thing of the past.

Most current vehicles will be dramatically refreshed. A brand new Grand Caravan is due for 2014, though media sources claimed it would not be kept at all.

The plan so far appears to be coherent and workable. Of note, both past and future initiatives were noted and related to each other. This is not a “Fiat will take over and fix everything” plan, nor is it a “men in white coats will descend and fix what you idiots have done” plan.

Daimler has a lot to fear, it seems. They have staked a lot on the commercial truck realm now targeted by Fiat. The Fiat vans may well displace the pricey Sprinters, which are already under pressure from new competition, and Freightliner might be seeing Fiat/Dodge in its rear view mirror.

A serious focus on quality will help, and it appears that Fiat is serious about climbing in quality – both perceived and real. Some of the changes are continuations of what has already been put into place, which is good; if something is working, only a fool would tamper with it. Other changes are presumably designed to move forward or to help corporate compatibility.

There’s a lot to like in this plan. We know there will not be wholesale destruction as Fiat pushes out everything they didn’t design. Indeed, Fiat will be taking on Chrysler tech as Chrysler takes on Fiat tech. Even the World Engine seems to be slated to continue, albeit with optimizations. Unfortunately, we will apparently lose any domestic engineering of mid-sized and small cars; those of us who knew and loved the Neon and original Stratus will miss them, and Cherokee/Liberty followers will probably be more than a little upset. But that seems to be the price of survival.