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The mad genius of killing the Dodge Dart and Chrysler 200

Sergio Marchionne isn't crazy. At least not with respect to the recent announcement that Fiat Chrysler Automobiles will cease production of the Dodge Dart and Chrysler 200. Instead of crazy I'd call this CEO ruthlessly pragmatic, and perhaps short-sighted. The latest revisions to FCA's most recent five-year plan tell some truths about the company's finances. In other words, it can't afford to build mainstream sedans. With only 87,392 units sold in 2015, the Dart is an also-ran in the segment. The axe falls easily there - Chrysler hasn't had a compact-car hit since the second-generation Neon. The 200 isn't so cut and dried: Last year sales increased 52 percent, and the 177,889 total for 2015 is more than those for the Subaru Legacy and Kia Optima. But looking at the overall FCA picture the Chrysler 200 has to go, at least from a short-term perspective. The vehicles that make big money – Ram trucks; Jeep's Cherokee, Grand Cherokee, and Wrangler – can't be made fast enough. FCA can't afford to idle the 200's Sterling Heights, MI, assembly plant to cut back on inventory when other plants are running flat out. It seems crazy to throw away 265,000 sales, but FCA is leaving money on the table by not building more profitable vehicles. The Wirecutter's Senior Autos Editor (and former Autoblogger) John Neff agrees. "As bold as it looks from the outside, he's really making a safe bet that their money is better spent on designing better and building more crossovers and trucks. He's probably right about that." But according to Jessica Caldwell, Executive Director of Strategic Analytics at Edmunds, "FCA's strategy of eliminating the Dart and 200 might be short-sighted if gas prices were to rise and Americans, once again, flocked to small vehicles. FCA must have plans to expand the lineup of small SUVs and position them as small-car alternatives in terms of price and fuel efficiency for this strategy to make sense." FCA's latest announcement focuses mainly on the profitable brands and nameplates. There's hardly a mention of Chrysler, Dodge, or Fiat. And future planning is where the plot holes appear. This realignment cuts dead weight from the product portfolio, but FCA's latest announcement focuses mainly on the profitable brands and nameplates. There's hardly a mention of Chrysler, Dodge, or Fiat. So what's Sergio up to? David Sullivan of AutoPacific thinks Marchionne is still looking for another CEO to hug.

Trump is pleased with FCA's investment in Michigan and Ohio, but it wasn't done for him

Fiat Chrysler announced yesterday that it would be spending $1 billion on vehicle production in both Michigan and Ohio. The company estimates that its investment will yield about 2,000 jobs between both states. In addition to attracting our attention, it caught the gaze of President-elect Donald Trump, who tweeted praise to both FCA and the Ford Motor Company. He praised the latter for the company's move to cancel a new factory in Mexico. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Trump's writing also seems to imply he deserves a certain amount of credit for these shifts to American production. However, as Sergio Marchionne, CEO of FCA, explained to the press in a conference today, Trump and his impending administration had nothing to do with the decision. He said the decision to invest in the plants in Michigan and Ohio were in place well before Trump was going to be the President of the United States. In addition, he said that FCA has not been in contact with Trump or any of his colleagues regarding the decision. Marchionne also stated that neither he nor the company was making any preemptive plans for manufacturing locations the light of the upcoming Trump presidency. Rather, he said that the company will change to address regulations that are actually passed, and the only way the company could change plans ahead of new laws or taxes would be with more information and clarity. We assume that a "big border tax" isn't specific enough. Still, the fact that automakers are going out of their way to make and clarify announcements about manufacturing illustrates the massive attention Trump brings with every Tweet. Related Video: Government/Legal Plants/Manufacturing Detroit Auto Show Chrysler Fiat Sergio Marchionne FCA 2017 Detroit Auto Show

Will the Chrysler 300 go front-wheel drive?

FCA chief executive Sergio Marchionne hinted last week that the strapping rear-wheel-drive Chrysler 300 sedan could go front-wheel drive for its next generation using the underpinnings from the Chrysler Pacifica minivan. Speaking at the Pacifica's production launch in Windsor, ON, Marchionne said, "this plant and this architecture is capable of making the 300 successor, the front-wheel, all-wheel-drive successor," Reuters reported. Perhaps realizing he appeared to be announcing a dramatic shift in product strategy, Marchionne backpedaled in response to a follow-up question, noting only that the Ontario factory is "capable" of making the sedan. "It's capable. It's not a commitment," he said, according to Reuters. The 300 is currently built in Brampton, ON, alongside the mechanically similar Dodge Charger and Challenger. The platform, known as LX in enthusiast circles, is an evolution of Mercedes-based chassis pieces that date to the DaimlerChrysler era. Marchionne's comments didn't cover the Dodges and left a lot open to interpretation. The 300 could switch to front- and all-wheel-drive and focus on a more civilized, elegant ride character, leaving the Charger and two-door Challenger as traditional rear-wheel-drive muscle cars. That strategy would further differentiate the Chrysler and Dodge car lines. Additionally, the Charger's RWD platform makes it a popular police vehicle, and both Dodges are offered in top trim as 707-horsepower Hellcats. Switching to front-wheel drive would seemingly complicate both of those endeavors. Rumors have also swirled that Alfa Romeo could contribute RWD underpinnings for Dodge. Related Video: Featured Gallery 2015 Chrysler 300 View 92 Photos Design/Style Chrysler Dodge Off-Road Vehicles Performance Sedan chrysler pacifica