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.

Very good news. The only negative I see is the “RAM” brand–it’s just an unknown, how it would be perceived here (confusion?), or in Mexico where Dodge has sold larger trucks under “Dodge.” Glad to hear they’d attack the commerical van and heavy truck markets: both are areas that Fiat does well in abroad. Good luck to Chrysler and Fiat.
The corporate website is showing “RAM” as a separate brand now.
http://www.chryslergroupllc.com/?redir=cllc
YEA!!!!!!!!!!
Ok, so they are going to attack quality issues, good to here. Still don’t really understand the RAM brand; so is it just full size trucks and then larger? Or is the RAM brand going to be the truck builder arm, just like JEEP should be the SUV arm of Chrysler. Still not to keen on a unibody Dakota, but if thats what the market dictates.
From a Parts perspective too many parts are still currently on Back Order, and going unfilled. The loss of the San Fransico PDC hurts us on the west coast, bring back second day air referals. Yes it does cost more but turn around for repair will be better.
So with the Sprinter bowing out in Jan of 2010, will we still be able to service them? If Chrysler and Fiat plan on going head to head with Diamler, will parts for the Sprinter become scarce or beyond what we might be able to sell them.
Just saw the 2010 Accessary Catalog email, will have a section for Older Jeeps just like the Current MOPAR PERFORMANCE catalog has a section for older MOPAR’s which is great. Bring back the
Steering Coupler Body for the 1992 Dodge Ram Part Number 52006912.
In this case: being ‘wrong’ can be a beautiful thing :)
Not as bad as I thought it might be……
Sounds like “big plans”, lets see if they can make it all work..
Well, so far it doesn’t sound as bad as I was begining to envision. I think. A unibody Dakota!!?? Well, maybe Sergio feels this is the way to be competitive in the less-than-full size light duty market, but I’m not thinking that way. I have a sense that new commanders at the wheel are not understanding the American market very well. I’ve had five LD PUs in my life (’71 C10, ‘73 D100, ‘78 D150, ‘85 C15, ‘03 Dakota) and my Dakota has been the most reliable and the most satisfactory to own of all of them. The Dak is on a unique platform and just as capable as most entry level full size. I’d like to see Ralph Giles work some of his RAM magic on the Dakota (dule integrated exhaust, much nicer interior, reduced noise levels, a full set of gauges, please!!!) I’d buy another!!
I would’ve liked to hear that the 200 platform will be moving forward. Sounds like the Charger is okay, what about the 300?
Unibody Dakota was in the works for a long time.
The Diesel slated for the Wrangler is that for US consumption or export? I know I have a ton of customer’s that would love to see a diesel in a JEEP, myself included.
Dave the unibody Dakota, would that be a Ridgeline Fighter?
This is disappointing to say the least…Fiat is shutting down Chryco’s longtime #1 Dodge Division and transferring the Dodge Trucks to presumably, Chrysler division (Chrysler Ram?)or even Jeep. This way they can more easily phase out Dodge. There really wasn’t a plan to bolster Dodge (and Chrysler as a whole). Instead the plan was to take control and expand Jeep division overseas and phase out Dodge. Chrysler was rumored to be the “premium” division but instead will become the everything brand (shows how much confusion there is in Marchione’s head). Fiat will pick off the LX cars for it’s own use with it’s own lackluster Lancia/Alfa Romeo lines and Americans will be stuck with Fiats at Chrysler dealers and wonder what happened to the Chrysler ingeniuty they once knew.
Can you read the five year plan coverage at allpar and then decide whether you want to stick by your comment?
http://www.allpar.com/corporate/chrysler-group/five-year-plan.html
Unibody Pickups and SUV’s were started with the Jeep brand with the Cherokee XJ and the Comanche MJ. They are smaller than the current Dakota, but the Dakota is almost a full size truck. The Cherokee and Comanche are good vehicles and have proven stronger than many anticipated.
As far as the plan goes, it’s far more optimistic than many of the so called “inside news” stories predicted. In fact, I’d love to see how the WSJ article that came out a week ago compares to the plan presented today.
The little child inside of me thinks that a potential Freightliner fighter RAM truck would be cool…But however, I am curious to see which Direction the Truck market goes with RAM and not Dodge.
It does not correspond and seems to have been written by someone who was making it up as they went along. I wonder if it was a deliberate false leak designed to make us love what we heard today, or a deliberate false leak designed to figure out who was leaking information, or someone having fun with the Journal, or whether they really did NOT have any sources.
Now we know that the most feared scenario shall not come to pass. We also now know what we all need to do to do in order to support our own best interests – buy Chrysler products ( Special Note to Chrysler stakeholders that purchase Ford Trucks: please use your brains).
Well this is all good news. but now thay have to put there money where there mouth is so to speek. They better follow threw with this or else the media will be all over them! Just keep there dealers in the loop and not in the shadows as always!
But Dave we like lurking in the shadows
Considering the situation, this isn’t the worst news, but lets see about following through. After being put on life support due to Daimler’s Blitzkrieg Bop & Hell’s rabid Three-Headed Dog, maybe Chrysler will survive this partnership/alliance/merger/takeover.
In the meantime I’ll continue taking my Durango to the local dealership for routine maintenance as a way to give them support. Where possible, I’ll buy Mopar licensed parts for my never ending Charger project.
I fully expect to walk into their showroom three years from now to purchase a Challenger R/T to temper my oncoming mid-life crisis.
I suspect the Ram 18-wheelers will just be rebadged Ivecos, as will the commercial vans. Now,Iveco sells a Hummer-like vehicle in Europe that some of us would like to see over here.
I guess we will just have to watch what happens in the short term to see how close they keep to the plan, and hope for the best. I will certainly consider buying a vehicle if they encompass all the attributes they say they will
Sounds good! Hopefully they can follow through with “The Plan”.
RAM will always be associated with Dodge in our minds, so don’t worry about that.
It’s not going to matter to the consumer who don’t know what either name stands for.
To be honest, I never really agreed with the use of the “Rams Head” badge with the dodge cars.
That was stupid. Never said “Dodge” anywhere on my Charger, just that rams head. Try explaining that one in 25-30 years time. That badge should have been reserved for the trucks only.
I thought I read somewhere they’ll be using an old dodge badge for the trucks? That’ll be O.K.
Hope I can get those stupid MB parts for my charger in the future. They are way overpriced to begin with. I love my car, but I’am glad that era is over. Dr.Z can take a hike!
Good Luck Chrysler! Thanks for the coverage Dave Z.
Well, the “most feared scenario” could certainly still come to pass – failure of the company – but the Plan is certainly bold, as it needed to be.
Looks like if they go down, it’ll be with guns blazing. conversely, if it works, they’ll reinvent and revive the company….
HEY! I don’t know about you guys, but I think the “plan” is eminently real in scope, and definitely one that “will work!” Far, far, FAR better than I could have imagined. A couple minor bumbles, but someone will get around to finding out about the 200C. And I ain’t too keen about the PT going away. That is a real niche market that STILL has market potential, like the VW Beetle sort of thing, years of production left.
I can tell you that Marchionne has made a positive impression here. He managed to cover all the bases that needed attention, while injecting the future with excitement, and realistic goals. Maybe he isn’t a Bob Lutz, but after his performance with Fiat as a whole, it looks like Chrysler is going to be on a roll that will sweep it into a “big American stick” for the future.
I don’t know about the rest of you, but, (A HIGH FIVE to hemihead) I am sort of excited to be able to see the recovery and reemergence of a vital, exciting Chrysler!
This is a bit off the topic here, however, in regards to Dodge or RAM building BIG over the road tractors, they were every bit as tough, and economical as anything built by Peterbilt, Freightliner, or Kenworth. A local wood pallet company purchased (new) some dual rear axle Ram Big Horn tractors, way back when. They pride themselves on appearance, and those Big Horns sure show it. Polished, chromed, and run without all the smoke and drang of poorly maintained Cummins. I ALWAYS get a kick when I see one of them bellowing down the road with its load. Whether IVECO or Dodge of a combo of both, it would do good for Chrysler to get out there, beat up Freightliner, (freight crusher)at their own game.
A lot has happened in the last few days and I’d like to commend Dave Zatz for providing us with far more detail than I’ve been seeing or hearing from the so-called “legitimate press,” including the cable business channels. Dave does a very good job at his post on AllPar.
Thank you, Dave!
Thank you! It was a very rough day but worth it in the end!
I was totally impressed at how “down to earth” the plan was. It wasen’t one of those Glamour
shows we’re used to. I think the goals and products are definately acheivable. The goals are set in a sensible manner, and not too ambitious. This guy has definately got the team together.
I think its a great day for Chrysler!
Highfive to Curtis!
Maybe Dodge should bring back the Fratzog…that rocket-triangle emblem of the 60s-70s
I stayed up until 1:30am listening to the live webcast online. (note: I’m studying abroad in Prague) I would like to thank Dave and his team for all of this information. It really breaks down the PDF slides with workable content derived from the webcast itself. If you have 5 hours to spare, I think listening to the FULL webcast would be an invaluable resource for understanding this plan further. One note on the marketing of the vehicles. Ralph Gilles said that the OLD way of Base, Mid, High, Sport is not producing vehicles all people want. People want the looks of the mid-sport, but have to settle for less. He was describing the new way that they were going to package the vehicles. So the traditional Base, Mid, High, Sport might not be around forever. Don’t get me wrong, they will have nice looking models and the higher performance and looks will still cost more. But I think his point was to try and eliminate the ugly base and plain mid range vehicles and fill that void with something people feel connected to. Something that looks complete, instead of that nitro vehicle he used as an example in the slides. Thanks, and good Luck Chrysler. I will be the FIRST to buy the new CUV and I’m pretty sure my fiance will be looking at a 200c (if you decide to make it).
-Alex
P.S. Dave, if you need any photoshop work done, let me know:)
A company’s history and future are with its people. As a company, Chrysler has demonstrated varied and significant skill in the past. Often acknowledged for making B-29 engines, tanks, and the first radar guide anti-aircraft gun during WWII, most forget that the majority of the famous Norden bombsights were built by Chrysler faster and at half the cost than Sperry could build them. In addition, they developed a reputation of leaving the factory better aligned than the Sperry versions.
As with most things, people make the difference. The women and men who design and build the cars and trucks today at Chrysler are among the most talented anywhere in the industry. All Chrysler needs, and has needed, is a leadership committed to serving the customer, which will lead naturally to the company’s success. Sergio may or may not be that person, but to his credit he has a record of bringing about positive change. So far the new plan has elements of inspiration. We can hope and we should give him a chance.
Dusty, I agree with you that it’s people that make the difference. The question is, are the right people left at Chrysler or have they left or been forced out? How many times can the veterans that are left be asked to pick themselves up by the bootstraps and soldier on? Morale has got to be an issue based on a lot of let downs. Can Chrysler employees be anything but disillusioned after all the broken promises and empty hype? For this company to survive, they have to “believe”. And that’s probably the biggest challenge this round of new management is facing.
I hope they have a big advertising budget set aside. Because it’s not only needed to get consumers onboard, it’s needed to excite the troops as well. They have to believe that their efforts aren’t futile and that they will have the opportunity to bring us more world-class products like the Ram and the LX’s. The upcoming Grand Cherokee looks like another winner.
And least we forget, it was Chrysler Corporation that was absolutely INSTRUMENTAL (as in IT COULD NOT HAVE BEEN ACCOMPLISHED) that developed the means for the fuel for the atomic weapons that made the decisive victory over Japan in 1945. The implements, Diffusers, were built so well that they were still performing their function up until the factory (yes a bomb making factory) closed in 1986 at Oak Ridge Tennessee.
If Chrysler gets back to it’s engineering base, then the sky is the limit….. well, styling has to play the role as well. Dowdy styling like the late 40’s, early 50’s just covered up what were essentially well built and anvil like autos.
I am looking forward to seeing what is up for the future.
And DAVE, please take note, I know you put a lot of effort into the “plan” and it shows! Great work.