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AN: Does Marchionne grasp lessons of GM-PSA?

Discussion in 'Mopar News and Rumors' started by aldo90731, Mar 13, 2017.

  1. DarkSky

    DarkSky Cruising Around Level III Supporter

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    That's true, but Jeep is much more of a player in the SUV market than Chrysler is for midsize sedans. Jeep is a well known and respected SUV brand, Chrysler is not respected for midsize sedans.
     
    npaladin2000 and Prabhjot like this.
  2. Prabhjot

    Prabhjot Member

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    They apparently are working on the presumption of a usa sizeable slowdown come 2018. And so, since demand for say the refreshed Cherokee might drop a fair bit, they plan on amping up exports of it to Europe (face lifted.)

    Also, they apparently feel they have a long runway as THE American suv/truck specialist firm still left, I.e., a new dodge rwd cuv and a Chrysler cuv too by end 2018? They could be right, you know?

    Albeit that the severity and speed of that full blown downturn, even if delayed by a year, could catch even fca, otherwise ever so tight at capacity utilisation levels in the usa/n America, out, I.e., destroy fca usa margins just like ford's and gm's too are already corroding, precisely because they have such 'full Line ups'.

    Fca in the usa is entirely focussed on getting through that probable, the first since the 2008 crisis-death-rebirth, downturn with the uaw still assured enough and the firm with an as-yet unproven 'in the long run...'! The 2018 financial target achievement IS the existential compulsion (and/or a big margin boosting 'big deal' or two), the urgent short run so that there is a good and sustainable long run for esp the usa-only brands (I.e., not jeep, maybe not ram in the near-ish future.)

    @valiant67
     
  3. valiant67

    valiant67 Rich Corinthian Leather Level III Supporter

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    Chrysler at one time was a very significant and respected player in the sedan market and it slipped away. If they don't learn from the past, the same thing will happen with CUVs. In some ways, it is already happening. Look at the market share for Toyota, Honda and others already in CUVs.
     
    somber, GasAxe, Ian and 2 others like this.
  4. 77 Monaco Brougham

    77 Monaco Brougham Member

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    I'm right with you on this.

    The collapse of interest / sales in the compact and midsize segments serves as a kind of "canary in the coal mine". In other words......it by itself was not lethal.....but it signals that death is surely on the way if corrective steps are not taken.....and NOW.

    The 44th President of the United States used to have a saying about "The Urgency Of Now". FCA would be wise to take that to heart.
     
  5. dartndodge

    dartndodge Member

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    Perhaps an interesting proposal. What if BMW were to acquire part of FCA. They certainly would not want Fiat or Alfa which could be spun off to both the "Family" and Ferrari, basically really only needing Chrysler, Dodge, Jeep. Make Chrysler a high end US car brand, no mid range or small cars.....a coupe, Imperial etc. Spin the truck market back to Dodge, with American performance, and use Jeep as is. BMW could co exist with Dodge as its truck budget brand, with performance,and Chrysler as its "Brash pure American" brand, Not trying to be some imitation "Euro" as Caddy etc seem to want to be. Just a thought.......certainly better than the current Fiat setup.
    Hard to believe for younger Chrysler fans, that Chrysler Corporation once consisted of an Aerospace division, making components for NASA, a Military division making Tanks and Missiles, an Electronics division out silicon valleying, Silicon Valley, a Marine division making state of the art stern drives, accessories and inboard and outboard engines, an Air conditioning Division Airtemp with air conditioners probably still functioning in buildings today, A Large truck division and other stuff, even snowmobiles I believe. ...oh and not to forget Dana OR that they had manufacturing facilities on 5 Continents.
    Now people mention Fiat and Chrysler in the same breath........One shudders.......
     
  6. 77 Monaco Brougham

    77 Monaco Brougham Member

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    And mourns......
     
  7. Erik Latranyi

    Erik Latranyi Well-Known Member Level III Supporter

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    Please break down the 2016 sales into 3 categories:

    1) CUV
    2) Sedan
    3) Pickup
     
  8. valiant67

    valiant67 Rich Corinthian Leather Level III Supporter

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    [referenced a post moderator removed]
    This is a very condescending post.
     
    Last edited by a moderator: Mar 20, 2017
  9. Dave Z

    Dave Z It's me, Dave Staff Member Supporter

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    Use the reporting system rather than calling attention here.
     
  10. Dave Z

    Dave Z It's me, Dave Staff Member Supporter

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    Yes, I never believed in the Daimler-era idea of finding niches where nobody competes yet and living entirely by noncompeting. It didn't work for Willys, Kaiser-Jeep, or AMC...
     
  11. Adventurer55

    Adventurer55 Member

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    As far as the Chrysler brand is concerned I respectfully disagree. I think they would have been miles ahead making their midsize sedan rwd. It sets them apart from the crowd, something they need to survive.
     
  12. Dave Z

    Dave Z It's me, Dave Staff Member Supporter

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    “The RWD sports sedan market is different than the mainstream midsize sedan market. It's like comparing a Camry to a 3-Series.”

    And then there’s the Audi FWD cars that compete with the 3-series.
     
  13. DarkSky

    DarkSky Cruising Around Level III Supporter

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    Audi is the exception, but they're still luxurious and respected vehicles. The Kia Stinger is targeting the A5 Sportback and 4-Series Gran Coupe, so it doesn't have to sell in as high of numbers as a mainstream midsize sedan to be considered successful.

    I'm also not saying that a RWD Chrysler midsize sedan wouldn't have been successful, but being RWD puts it in a more performance-oriented category than the rest of the midsize sedans (Camry, Altima, Malibu).
     
  14. Erik Latranyi

    Erik Latranyi Well-Known Member Level III Supporter

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    Look, the luxury makes are trying to capture volume by offering some mainstream vehicles.

    The mainstream makes are trying to capture margins by offering some luxury vehicles.

    Convergence.
     
    GasAxe and DarkSky like this.
  15. DarkSky

    DarkSky Cruising Around Level III Supporter

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    And that's why the "premium" vehicles between mainstream and luxury are mostly gone.
     
    GasAxe likes this.