Chrysler’s Five-Year Plan: What Next?
Written by The Wire
WHAT NEXT?Chrysler’s Five-Year Plan: What Next?
In a marathon six-hour press conference, the leaders of the new Chrysler Corporation outlined their plan through 2014 for the rejuvenation of the embattled company.
The key points of the plan include:
- Investment to create a compelling brand and product offering.
- Leverage the alliance with Fiat.
- Manage the supply chain to match customer demand and production.
- Achieve higher levels of satisfaction in a strengthened “Genesis” dealer network.
- Shave manufacturing, material, and administrative costs.
- Grow the MOPAR division while continuing to deliver attractive profitability.
- Build a strong team and a high performance culture.
- Deliver financial performance that allows the company to recapitalize and the current shareholders to realize a return on the investment they made.
At Dodge, new division CEO Ralph Gilles, best known for leading the design team that penned Chrysler’s last big hit, the 300, presented a vision for the brand intended to make it appeal to a younger demographic, infuse the products with more exciting driving characteristics, and enhance their personality. The truck side of Dodge will be separated off into a separate brand called Ram.
For the immediate future, Avenger, Journey, and Caravan get new interiors and some exterior touchups to carry them until they get redone or replaced. An all-new Charger bows late in 2010. An all-new full size Crossover will also wear the Dodge logo for 2010. As expected, going forward, some platform sharing with Fiat products is part of the plan. That said, Viper goes away this year, but will possibly return with an infusion of Alfa/Maserati/Ferrari DNA in approximately 2012. Also in 2012, a new small compact sedan will debut. A new small car will be offered in 2013, co-developed with Fiat. An all-new Avenger also goes on sale in 2013.
Over at Jeep, a new marketing campaign will endeavor to infuse the brand with a new look, feel, and attitude. The new tagline: “I live. I ride. I am. Jeep.” As for product, the driving thought goes that as long as Wrangler remains true to the core idea of what a Jeep is, other models in the lineup have room to play in other segments as needed. We’ll see an all-new Grand Cherokee for 2011 with a more sophisticated interior treatment and new exterior styling. Patriot and Compass get major modifications for 2010 and Liberty gets mildly refreshed. The plan is to introduce all-new versions of each of those vehicles in 2013. A new smaller SUV will also debut in 2013, while Commander will be allowed to gradually peter out and die.
At the flagship Chrysler brand, the goal moving forward will be to; “Design cars that start out revolutionary and end up timeless.”
For 2010, an all-new 300 bows, Sebring will be reshaped, Town & Country gets major modifications, and PT Cruiser will be refreshed for the last time before it goes away in 2011. In 2013, Chrysler will get a new small car based on a Fiat platform, a new Sebring bows, as well as a mid-size crossover. The next new Town & Country will debut in 2014.
At the new Ram truck brand, Dakota pickup soldiers on to a quiet death in mid 2011. A new mid-size truck to replace it is under consideration. The Ram “Ram” series pickup (which will presumably get a new model name) is scheduled for major mods in 2012 to carry it through 2014. An all-new large commercial van and an all-new small commercial van will debut in 2012, co-developed with the Fiat group.
The Chrysler Group sold 1.8 million cars in 2009. Projections are to expand that figure to 2.8 million by 2014. The company anticipates breaking even in 2011, and becoming profitable after that. They plan to fully pay back their government loans by the end of 2014.
