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Rumors are the ones that will kill Chrysler

Discussion in 'Mopar / FCA News' started by Mr.Source, Jun 6, 2018.

  1. valiant67

    valiant67 ...

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    The "real" reason FCA dropped the sedans? They saw easier money in other segments.
    So they killed Dart to move Cherokee (one example) to Belvidere. And did you notice the incentives they were loading on the 2018 Cherokee? And that the 2019 Cherokee is already getting up there as well, $3500-4000 on a just refreshed model?
    This is where my argument about not learning the lessons from the sedans comes from. Sure, now Cherokee probably has enough margin that they can offer $4k of incentives and make money. But the CUV market becomes more appliance oriented and crowded every day. At what point (probably still a good way into the future) does Cherokee have to give way to a more profitable vehicle? They want to sell premium, high margin vehicles? Then they need to examine what people buying those types of vehicles expect. Or they just keep moving the metal with discounts.
     
  2. james.mooney.

    james.mooney. The Poster Formerly Known As "Bethlumboy"

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    Why weren't they making more money on sedans?

    Was allocating the production capacity to more profitable segments a mistake? What should they have done instead?
     
    DAGAR likes this.
  3. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    I find it supremely frustrating that this company (present incarnation & all prior incarnations).....is incapable of learning the lessons of history....or if they DO learn a lesson.....IT'S THE WRONG ONE!!!
     
    Adventurer55 likes this.
  4. TripleT

    TripleT Allpar Legacy

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    OMG?
     
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  5. Zagnut27

    Zagnut27 Jeepaholic

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    It’s not necessarily a mistake to reallocate production capacity. In fact, because of the trends in the overall market, it’s the right decision. However, as the SUV/CUV market becomes saturated with offerings in all segments, it will require more incentives to move vehicles which will eat into those desired margins. Much as it has done for the sedan market. If automakers don’t learn from their history and adjust their business model, they’ll be right back where they are right now...with diminishing margins.

    What the answer is to that, I have no idea. But I’m not getting paid the big bucks to find out either.
     
  6. freshforged

    freshforged Well-Known Member

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  7. Ryan

    Staff Member Level III Supporter

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    Yes, but it's too far gone at this point.
     
  8. valiant67

    valiant67 ...

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    Because Chrysler only lead in two areas. Styling and discounting. And they went bland on styling. They had nothing left but discounts.
    It’s too early to say. Certainly the dropping out of markets, like the constant shuffle of names, does not imply stability. So far, the economy has stayed strong and gas prices fairly low so that part of the gamble paid off. The situation could have been handled much more gracefully than Sergio did.
     
  9. wtxiceman

    wtxiceman Well-Known Member

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    Every automaker faces the same scenarios, question is who can overcome them?
     
  10. Christopher

    Christopher Socially Unacceptable
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    And the bad press/feelings those generate.
     
  11. BobbiBigWheels

    BobbiBigWheels The "Front-Line" Perspective

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    I sell on behalf of FCA?
     
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  12. jerseyjoe

    jerseyjoe Plymouth Makes It

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    Its been a MOPAR tradition to offer discounts. I feel this need can be curbed by offering "DGV" darn good vehicles that are afforably price. Lots of people are moving to imports that cost less, offer the same equipment and a better warrenty.
     
  13. HEMI345

    HEMI345 Active Member

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    Autoblog
     
  14. Christopher

    Christopher Socially Unacceptable
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    That reads more like an editorial than a news piece. The person that wrote it has chosen their information and quotes to only reflect their position.

    I read an article over the weekend saying used car prices were higher than normal so the claim that they're low doesn't track. Alfa was starved of funds while money was poured into Chrysler. I don't recall anyone here complaining then.

    While the author may have a point, if he can't get his facts straight, then his whole argument is suspect. He is just crying over spilled milk wishing for what might have been. Would it have been great to have? Yes. Do we have it? No. Getting worked up over 'what might have been' does not help the company or the discussion. Rather than look in the rearview mirror, people should look out the windshield. It'll be easier to see where they're going.
     
    #435 Christopher, Jun 19, 2018
    Last edited: Jun 19, 2018
    MoparJoe, tlc, freshforged and 3 others like this.
  15. Tin Man 2

    Tin Man 2 Active Member

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    It does seem to be entering the fray a bit late. I'd be more inclined to develop a tall mid size sedan before the market changes again, and the market will change.
     
  16. TripleT

    TripleT Allpar Legacy

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    Unlikely as the form is less efficient for moving people and good. Fuel efficiency is being addressed on the powertrain and weight side.

    Does this really need to be rehashed here, on a Jeep thread.
     
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  17. Ryan

    Staff Member Level III Supporter

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    AN has lost all credibility IMO.
     
    #438 Ryan, Jun 19, 2018
    Last edited: Jun 19, 2018
  18. Ryan

    Staff Member Level III Supporter

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    Is that what people say at your dealership? That’s what we say here. The only people that I know of who think the company is still referred to as Chrysler are the ones that still call the trucks Dodge Ram.
     
    BobbiBigWheels likes this.
  19. Adventurer55

    Adventurer55 Well-Known Member

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    So, are Jeep dealers really worried?
     

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