Chrysler to discontinue Dart, 200 to make more room for SUV and truck production

[ifcar]

I first saw this story on Autoblog and thought they'd just gotten something wrong, but apparently it's true: Chrysler is planning to not sell any small or midsize cars because it wants to have more factory capacity available for Ram and Jeep.

"We have decided to de-focus, from the manufacturing standpoint, to de-focus on the passenger car market. There are two cars in particular, the Dodge Dart and Chrysler 200, which will run their course," Marchionne said during a conference call with Wall Street analysts on Wednesday. "Without creating additional capacity, in the United States, we need to ... to try and deal with the development of both Jeep and the Ram brand."

The news is stunning, given the investments made to develop the Dart and the Chrysler 200. The automaker invested more than $1 billion to overhaul its Sterling Heights Assembly Plant to build an all-new Chrysler 200 midsize sedan that launched in 2014 and spent $600 million to launch the Dart compact car in 2012.

http://www.freep.com/story/money/cars/chrysler/2016/01/27/fca-build-more-jeeps-rams-under-new-production-plan/79393200/


This isn't even the first time Chrysler became convinced that the sedan was dead and forward-thinkingly killed off its four-doors. The Caliber destroyed Chrysler's chances of having a popular small car at a time small cars were booming, and replacing the Intrepid with the Magnum almost took Dodge out of the large-car business until the Charger followed up later.

At least they could in theory grab some Fiats for the U.S. market if gas prices go back up, but this doesn't seem like a very well-considered move. It's not like lots of automakers aren't selling highly successful sedans. It's not like 200 sales haven't been rising steadily since its redesign. It's not like the Dart flopping isn't easily attributable to poor gas mileage, not a lack of interest in small cars. Crazy stuff.

[280Z Turbo]

I think Marchionne is a moron.

[AutobahnSHO]

Dummies.

[MX793]

How exactly are the planning to meet CAFE fleet averages?

[Eye of the Tiger]

How exactly are the planning to meet CAFE fleet averages?

They won't. They will just pay the fines or whatever happens.

[12,000 RPM]

We are 2 months away from April 1st, WTF!!!

The Dart I can understand.... but the 200? And yea what happens to their CAFE averages?

Seems like Johan de Nysschen and Marchionne are gunning for the auto industry's biggest moron trophy. Jesus Christ.

Then again, FCA is taking $5-6K baths on $20-30K cars. Sometimes market share just isn't fucking worth it. It is just amazing because they had a good run with the 1st gen Neon and they have fumbled it with every fucking successor. I really thought the 200 was building momentum but the discounts SCREAM otherwise. Wow. I am legitimately shocked!

[ifcar]

How exactly are the planning to meet CAFE fleet averages?

It seems the idea is to have electric vehicles making up for that. But this means they're simultaneously arguing that people want trucks instead of cars because gas is so cheap, and that people will buy electric cars in high volume in this era of cheap gas -- and from Fiat-Chrysler, no less, which I don't think has even managed to sell 1,000 electric cars.

[MrH]

I think Marchionne is a moron.

The guy is fucking nuts. FCA has high ups leaving in droves because of him. The way they openly talk about him is bizarre. They all but say he's a total idiot and just caused chaos wherever he goes.

[MrH]

How exactly are the planning to meet CAFE fleet averages?

Hot topic at fca right now. Margins might be good enough on trucks and SUVs they can just afford the fines.

[2o6]

Jesus Christ.



I don't even know what to say.



Chrysler is about to be in the grave

[Eye of the Tiger]

Jesus Christ.



I don't even know what to say.



Chrysler is about to be in the grave

If they hurry up Obama might still be able to bail them out.

[2o6]

FCA gave us a warmed over platform that they stretched the hell out of and tried to make competitive. The  platform they gave us is a wide version of the one from the Fiat Bravo, which is old.



Alfa is going to fail, because it offers nothing for non enthusiasts, and they have yet to show it in non Quadrofolio trim. They should have stuck to using FWD Fiat platforms.


The Dodge trucks have lost all brand equity because of the name change to RAM. And the Dodge trucks have always played second fiddle to the Ford and Chevy.


The Pacifica was the stupidest name change of all time, and ruins all brand equity the "Caravan" moniker had. The Caravan is one of the best selling nameplates in this segment, even if it is a smaller segment.

Jeep does not need another compact SUV. The Cherokee is a RAV4 competitor. We don't need another.

The Dart had issues because the 1.4T is awkward in power delivery, and the 2.0 and 2.4 are neither fast or economical despite the numbers they put on paper.

And Fiat's entire lineup is fucked - the 500 is getting old, and all of the 500 based cars are old as shit.

[2o6]

Also, the LX platform is old as hell

[12,000 RPM]

I am seriously flabbergasted

You compare them to Ford for example, it's amazing. And Marchionne wants to merge with another company!!!! Maybe to get back all the talent that is leaving. Jesus Christ!!!!

[MrH]

I kind of understand the idea behind it. Why continue blowing money developing vehicles that time and time again you prove you cannot make competitive or profitable, when you have some plants raking in cash and bursting at the seams?

Honestly, my take on it: he wants to merge somehow with anyone baaaaad. So bad, he's killing off as many non-competitive, non-profitable vehicles as possible. If all he has left are cash cow trucks and SUVs and open plant capacity, he's a much more viable company to merge with.

[shp4man]

A four word explanation- The price of gas.

[ifcar]

I kind of understand the idea behind it. Why continue blowing money developing vehicles that time and time again you prove you cannot make competitive or profitable, when you have some plants raking in cash and bursting at the seams?

Diversification as opposed to putting all the eggs in one basket, and investing in the future rather than just milking potentially short-term cash cows. The 200 isn't at Camry volume, true, but sales have increased dramatically and have continued building.

But it is true if someone merges with Chrysler, they won't need that as much. The problem is, does anyone want them? I could see a pretty good synergy between Chrysler and Nissan from a North American perspective, but Renault presumably doesn't want Fiat.

[GoCougs]

Hmmm. That's a good point. Perhaps they're trying to make Chrysler attractive to an automaker that doesn't have much if any presence in midsize/large SUVs and trucks - say Mazda or the like? Seems logical but the practicalities seem crazy.

[MrH]

That was the idea originally. Titan and Ram were going to be built in the same plant and everything.

I think have a shitty legacy midsize car hurts the value of the company more than it helps when it's trying to merge. In that situation, it's all about getting your numbers as good as possible, even at the expense of long term diversification.

[2o6]

A four word explanation- The price of gas.

Which is temperamental

[Soup DeVille]

I think Marchionne is a moron.

This

This plus a thousand.

[280Z Turbo]

Hmmm. That's a good point. Perhaps they're trying to make Chrysler attractive to an automaker that doesn't have much if any presence in midsize/large SUVs and trucks - say Mazda or the like? Seems logical but the practicalities seem crazy.

Seems like you'd have an awkward American-Japanese-Italian culture clash. How many heads can a monster have?

[Soup DeVille]

Seems like you'd have an awkward American-Japanese-Italian culture clash. How many heads can a monster have?

Seven is the traditional answer.

[FlatBlackCaddy]

How shortsighted, almost unbelievable.

[280Z Turbo]

http://www.autoblog.com/2016/01/25/marchionne-chrysler-200-design-dummies-report/

He's like the automotive Donald Trump.

Can't they force him out?

[Galaxy]

If Allpar is correct, they will sell rebaged Mitsubishis instead.

How exactly are the planning to meet CAFE fleet averages?

Years ago, while taking about hybrids, Sergio Marchionne said that it would be cheaper to pay fines, and buy CO2 credits then paying for the development of a hybrid platform. Now obviously they did develop the new Town & Cou.... uhm Pacifica, but I think his general thinking has not changed.

[12,000 RPM]

People have to remember the 200 is selling $5-6K under MSRP across the board.... I think a lot of it just has to do with solvency. I would not be surprised if they were paying to have a midsize entry instead of profiting from it, which is really sad.

I am not really seeing Nissan being a viable partner. OK on the low end Nissan/Renault could supply mainstreamers but on the top end it would be screwy. Plus Nissan has partnered up with Mercedes and I am sure Mercedes doesn't even want to be TANGENTIALLY linked to FCA after the DCX scandal

It almost feels like dude is winding the company down to best position it for bankruptcy or something. This feels WEIRD.

[MX793]

If Allpar is correct, they will sell rebaged Mitsubishis instead.


Years ago, while taking about hybrids, Sergio Marchionne said that it would be cheaper to pay fines, and buy CO2 credits then paying for the development of a hybrid platform. Now obviously they did develop the new Town & Cou.... uhm Pacifica, but I think his general thinking has not changed.

Mitsubishi is perhaps the only company in North America that makes poorer selling, less competitive small and midsize offerings than FCA.

[12,000 RPM]

I'm fucking right now. Looking forward to TTAC's take

[12,000 RPM]

Regarding CAFE, FCA might make it.

http://fueleconomy.gov/feg/Find.do?action=sbs&id=36530&id=36373&id=36200&id=36581

The CUVs don't get much worse fuel economy, and they have much smaller footprints. Though people at TTAC wisely ask, "wat happens when gas goes back up"

IDK, but I can't imagine the 2-3 combined MPG difference between a Dart/200 and a Cherokee making a huge difference. People will be running back to hybrids