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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.

Total auto recalls already on record pace in 2014

If you've noticed that there have been more recalls than usual this year, you may be on to something. According to a report from the National Highway Traffic Safety Administration, the US market is on pace to break a record for recalls. In 2013, 22 million cars were recalled. We're only a third of the way through 2014, though, and we've already halved that figure, with 11 million units recalled. That's wild.
Considering the past few months, it shouldn't be a surprise that General Motors is leading the charge, with six million of the 11 million units recalled coming from one of the General's four brands. Between truck recalls, CUV recalls and the ignition switch recall, 2014 hasn't been a great year for GM.
Other recall leaders include Nissan (one million Sentra and Altima sedans), Honda (900,000 Odyssey minivans), Toyota (over one million units in a few recalls), Volkswagen (150,000 Passat sedans), Chrysler (644,000 Dodge Durango and Jeep Grand Cherokee SUVs) and most recently, Ford (434,000 units, the bulk of which were early Ford Escape CUVs). So while it's been a bad year for GM so far, its competitors aren't doing too well, either.

2014 Dodge Durango

Say what you want about the Dodge Durango, but ever since it came on the scene in 1998, it has occupied its own niche in the SUV market - not too small, not too big, tough, able, not always the best on the road and not always the best off-road. If it were a football player, it would be a tight-end that can block and catch. If it were a hamburger - a double burger with cheese and bacon, but not the Whopper.
As part of a mid-cycle upgrade for what was already a very capable SUV that Chrysler introduced in 2011, and built on the same platform as the Mercedes GL-Class and Jeep Grand Cherokee, the 2014 Durango has gotten some refinements worth noting that have cleaned up its tailoring and toned up its body and powerplant. The result is an SUV that shows itself to be a very good value in a category full of sticker prices that can run away faster than a kid who's been told he has to take ballroom dancing lessons.
Chrysler executives showing us the new Durango made a special point to reiterate that the Dodge brand is not going away, as has been rumored after the company took the Ram and Viper - the cream of the brand - out from under the Dodge umbrella. Turns out Dodge has been the brand attracting the most young people (who knew?) and has a younger average age buyer than Honda. The Dodge brand historically has also attracted buyers who aren't exactly Phi-Beta Cappa, which some companies worry about. Chrysler not so much. Dodge buyers tend to be more the working, high-school-educated, community-college-educated backbone of the work force in America. If they keep coming to Dodge, the Durango is a pretty good piece of hardware to save up for.