Breaking News: Chrysler kills the PT Cruiser; Radical product plans
From the article: “Meantime, Chrysler executives have also now decided to kill the entire PT Cruiser line after the 2009 model year, according to a dealer who was told of the decision this past week. The move further expands the auto maker’s push to eliminate slower-selling models. Chrysler, in announcing the expanded restructuring this month, said that it was dropping the PT Cruiser convertible, Chrysler Pacifica, Chrysler Crossfire and Dodge Magnum.”
“A plan now being discussed calls for Chrysler dealers to sell all of the auto maker’s passenger cars under the Chrysler name. Dodge dealers would exclusively offer pickup and commercial trucks, while Jeep dealers would sell Jeep and sport-utility vehicles, according to three dealers familiar with the discussions.”
“Chrysler LLC, looking to return to profitability by 2009, is considering branding changes that would further simplify its product portfolio while helping to cut as many as 1,000 dealers.”
A plan for the future is due by the end of the year. What are your guy’s initial thoughts?
Chrysler Considers Slashing
Number of Car Dealers - wsj.com
Report: Chrysler, Dodge, Jeep may get distinct identities - freep.com
Chrysler considering big changes to branding strategy - detnews.com
November 16th, 2007 at 6:58 pm
Going to a single car brand would be pretty radical. But having two car brands makes sense only if one commands a meaningful price premium over the other. Where would the car brand be positioned - upmarket, downmarket, in-between (and thus appealing to neither groups of buyers)?
Dealers will probably be pissed, but oh well. The current network is just not justified by C’s sales volume.
Killing the PTC after MY09 is reasonable. By 2009 it will be horribly dated (though still not as pathetic as the Ranger over at Ford).
November 16th, 2007 at 7:51 pm
I think it’s a great idea. Development money can be spent on making one competitive product instead of wasting it differentiating 2 or 3 variants from each other. Marketing money can be better spent too.
November 16th, 2007 at 10:17 pm
So if this happens does it mean that Dodge will lose the Challenger and Chrysler will get a Cuda? What about the Viper?
November 16th, 2007 at 11:38 pm
Good Move!I think Cerberus has some nice plans for the company!
November 17th, 2007 at 2:14 am
Biggest mistake ever !!!!!!!
Chrysler Upscale brand
Dodge as is (drop Dakota
Jeep no softroaders. Maybe make pickup (Dakota) drop Dodge version.
#1 PUT BETTER INTERIORS IN THE CARS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
November 17th, 2007 at 7:43 am
Next we will read that Cerberus has decided to kill any product that is not profitable. Poof…….. no more Chrysler. These are BAD guys for Chrysler, they know nothing about the auto business.
Slash and burn, cut, cut, cut is all they know.
I wonder who will stand behind my Magnum’s 7/70,000 warranty this time nest year?
November 17th, 2007 at 8:25 am
It’s a good idea for the most part, however, the big mistake would be removing the performance arm of Dodge. What do you do with Charger, Viper, and Challenger? Make them Chryslers?
There is nothing wrong with the LX series cars, one of Chrysler’s few bright spots. Even 4 years into the 300C, they are still selling over 100K per year, and the Charger is right at the same. Refresh both models and add the Challenger, and please don’t try to fix something that isn’t broken.
November 17th, 2007 at 9:41 am
Yeah,they tried this in Canada in 2000.Lets just say it didnt go over to well,people didnt dig into the Chrysler Neon (dodge neons sold real good up there)so in 2003 the Dodge nameplates were back.Is anyone ready for a Chrysler Caliber? What would happen to the Charger:dropped I guess ?But it looks way better than the 300 in my opinion. I dont think this would work.I cant imagine a chery type econobox with a Chrysler name on it.A Dodge yeah but a little crap box with Chrysler plastered on it ..Dont think it would work..and Chrysler would have a hard time if they ever wanted to make high end cars..say if things turn around in 5 years I think this would haunt them..
November 17th, 2007 at 12:25 pm
I might not know a whole lot, but im sure there are plenty of smart people in the cerberus circle.In these tough auto days somethoing has to be done.You cant build vehicles people dont want.Isnt that the main reason chrysler lost almost 2 billion dollars?By building cars and truck on the weekends only to fill cornfields.I think cerberus is off to a good start by getting rid of things they dont need.Do i think they are going to totally dismantle chrysler?I dont think so.Are they going to try and fix a company that has been failing over the years .Your god damn right!There are going to be some really hard changes but something has to happen.
November 17th, 2007 at 2:10 pm
There is every reason to have confidence in the automotive savvy of Jim Press and the top shelf female sales & marketing VP that came over from Toyota shortly before him. No need to worry about a Chrysler Challenger and a Chrysler Viper because the top brass at Auburn Hills are now real profs, not screwball fanatics. Look at it like this, Toyota’s U.S. operations with Jim Press at the helm wasn’t perfect, but it made very few marketing mistakes. Even Toyota’s most severe critics must give it an A+ for branding and marketing and maybe just an A or even an A- for putting very few sales-flops on the market.
There are two obvious objectives here: (1) get the number of dealers down to the level of sales volume; and (2) eliminate duplication of product so as that more money can be directed where needed—-like high quality interiors, refined power trains,etc.
It’s beginning to look like the Chery small car will be sold only in Europe and the Asia, not imported to the U.S. Jim Press and Nardelli probably plan to rework the entire product line so that Chrysler cars command the slightly upscale- to-premium price (without incentives) of its glory days. Thus the next generation Dodge Caliber could sell under the Chrysler brand and be worth the premium price that will be charged for it. Think of this game plan as a modification of the BMW/Minni Cooper scheme. BMW is highly profitable. It mints money all the time, but its sales volume will never reach the level of the top half-dozen industry leaders. BMW also makes the Mini Cooper in Merry Old England and sells every one of them without a discount or rebate of any kind. That vehicle ain’t everybody’s cup of tea, but both the product planning and marketing schemes are brilliant. Within the time frame of late 2010 to early 2012, Chrysler should be able to replicate that game plan with a premium, economical, fine-handling small car that oozes sex appeal, has a nice interior, handles well and gets rave reviews in the media, including high marks from both J.D. Powers and Consumer Reports.
I kinda think that Walter P. Chrysler is looking down on this and saying it’s a different world and a different time now but that he would have done the same thing when he bought-out the Dodge Brothers as Jim Press and Nardelli are doing now but there wasn’t much of a truck market at the time and Dodge cars were selling pretty good in that market.
November 17th, 2007 at 5:50 pm
The new regime commits suicide even before it gets out of it’s first business quarter! Amazing! Alienate any young clients by killing Dodge’s cars and then keep making Chryslers that old people will love! Great way to expand the line! I’m all for down sizing but this is just stupid.
How about focus on making The Chrysler interiors up to par or a transmission that lives past 50,000 mile how about window regulators or heater cores that last more than 40,000 miles? What about less cheap looking and feeling plastic interiors? how about cars that are actually in-tune with the roads, and not providing a more deadening ride like the 300?
November 17th, 2007 at 6:33 pm
…what is wrong with developing variable valve timing in Chrysler and Dodge motors yielding better milage cars? Why not a “Green-performance” varient under The Dodge line? Lexus will have it’s version soon. Chrysler dealer usually ARE Jeep dealers so that is just dumb.
November 19th, 2007 at 7:06 pm
I have talked to Mr. Press personally about this.
He is thinking years down the line…..none of this would happen for five to ten years AFTER the current products are replaced.
He did not tell me that Dodge would not have any cars…but that Dodge cars would be distinctively Dodge.
Chrysler Viper’s and Charger’s don’t work.
Dodge cars are dead and going away?
If that is true they would not introduce the Dodge Challenger.
November 19th, 2007 at 7:07 pm
P.S. Killing the PT is NOT Breaking News!
November 21st, 2007 at 6:26 pm
I think they should just close up shop for a few years till the new fuel cell and plug in models are ready.
Everyone will want a plug in Viper……wont they?
May 28th, 2009 at 10:26 pm
More recent (and tragic breaking news): Chrysler has killed hundreds of its dealership relationships. It’s so sad that a relatively temporary economic downturn can destroy a lifetime of work for so many family-owned businesses.
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