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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.

Stellantis will give its brands 10 years to prove they deserve to live

Formed by the merger of PSA Peugeot-Citroen and Fiat-Chrysler Automobiles, Stellantis has 14 brands under its roof, a number that makes it one of the largest groups in the industry. Rumors claimed not every brand would survive, with Chrysler often earmarked to get axed, but the firm said it will give them all a chance to shine. "We're giving each (brand) a chance, giving each a time window of 10 years and giving funding for 10 years to do a core model strategy. The CEOs need to be clear in brand promise, customers, targets, and brand communications," announced Stellantis boss Carlos Tavares during the Financial Times' Future of the Car event. His comments confirm Chrysler fans and dealers don't need to worry about the future — at least not yet. And, against all odds, Lancia enthusiasts can breathe a sigh of relief, too. Former FCA head Sergio Marchionne warned of the brand's demise on several occasions. Alfa Romeo is safe for now, too, as is Vauxhall, which are basically just Opels sold in the United Kingdom with a different badge. The engagement made by Tavares also means Stellantis won't divest any of its brands to raise capital until at least 2031. It's now up to each executive team to make a case for the brand they run, an unusual survival-of-the-fittest strategy in an era when cutting costs is more common than spending cash. Diving into the vast Stellantis parts bin should help even the most troubled brands turn their fortunes around on a relatively tight budget. It seems likely that survive Chrysler will need to look beyond the 300 and the Pacifica/Voyager, the only models in its range, and completely reinvent its image, which is currently nebulous at best. Lancia, once the champion of luxury, performance, and innovation, faces the same challenge. It's not starting quite from scratch, it's relatively popular in its home country of Italy, but it will need to think globally and expand outside of the city car segment to survive. Featured Gallery 2020 Chrysler 300 View 24 Photos Chrysler Dodge Fiat Jeep RAM Citroen Lancia Opel Peugeot Vauxhall

Chrysler to veer away from 'Imported From Detroit' message?

Claim some ground, control that ground and then expand. Chrysler, wandering the Earth like Kane from Kung-Fu when it came to brand message after the bailouts, pulled off the first two feats in only 120 seconds when its "Imported from Detroit" commercial aired during the 2011 Super Bowl. Two years later and now that the brand has a center in the minds of consumers, the Chrysler Group's head of marketing, Olivier Francois, says it's time to move away from the "Detroit" component of that slogan and express the "Imported" aspect.
It is, more precisely, about positioning Chrysler as genuine competition for imports and not Ford or General Motors, but rather Toyota on quality or Audi on technology. A report in Forbes said that Francois not only "wants to attract import owners to Chrysler vehicles by focusing on quality, technology, fuel economy and style," but to "take back the lead in these four things." That is the new understanding he wants people to infer from the idea of Detroit - that the nation's car capital isn't just a patriotic rallying point but a lively competitor for established giants.
Chrysler has been running ads that no longer refer to Detroit, and recent efforts have linked a specific character to each brand - like Jenny with Jeep and Steven with the Chrysler 300 - to create brand separation. Francois hasn't detailed what he plans to do to bolster Chrysler's upscale pretensions, but his efforts would be helped by CEO Sergio Marchionne loosing the pursestrings and the arrival of strong new product.