REPORT: Fiat wants Chrysler to be a Cadillac competitor
09-21-09, 10:50 AM
#1
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REPORT: Fiat wants Chrysler to be a Cadillac competitor
http://www.autoblog.com/2009/09/21/r...ac-competitor/
When you were a kid, there was probably a point when your mom or dad told you that you could one day be president of the United States. They probably didn't really mean it, but at least they wanted you to push yourself a little harder to achieve life's goals. Fiat appears to be in a similar situation with its new underling, Chrysler. The Italian automaker is working through a far-reaching game plan for the Chrysler, Jeep and Dodge brands, and it sees Chrysler competing in the luxury space. Chrysler brand CEO Peter Fong is setting the bar high, too, as he sees the brand being "a notch above Lincoln, a notch above Cadillac."
You may recall former parent Daimler had similar aspirations for the Chrysler brand, with vehicles like the 300 and Pacifica leading the way. While the 300 had some success and commanded a reasonably high MSRP, the Pacifica was a comparative failure. Then Chrysler followed up with the Sebring, which put to bed any hopes and prayers for an upscale Chrysler brand. Fong told Automotive News that Chrysler needs to be better differentiated from Dodge; a nameplate that management wants to be known more for driving dynamics. The only marque that will likely remain largely intact after Fiat's sweeping changes is Jeep, and even then, the Jeep lineup will likely receive more small, front-wheel drive-based vehicles in an effort to satisfy increasingly stringent CAFE standards.
While we can see how a more upscale Chrysler brand would be a great idea, we're having a hard time seeing how the Pentastar's namesake will catch up to Cadillac (or its competitors) any time soon. The resurgence of the Wreath and Crest has been seven years in the making, and even now the brand's success essentially rides on one product – the CTS. New models like the BMW 3 Series-fighting ATS and large and luxurious XTS promise to rebuild some of the momentum that Cadillac has recently lost, but even that remains to be seen. Chrysler, on the other hand, currently has nothing that can reasonably be said to compete with Cadillac, and judging from comments made by Fiat CEO Sergio Marchionne, there isn't anything in the pipeline, either. It's good to dream, though, right?
When you were a kid, there was probably a point when your mom or dad told you that you could one day be president of the United States. They probably didn't really mean it, but at least they wanted you to push yourself a little harder to achieve life's goals. Fiat appears to be in a similar situation with its new underling, Chrysler. The Italian automaker is working through a far-reaching game plan for the Chrysler, Jeep and Dodge brands, and it sees Chrysler competing in the luxury space. Chrysler brand CEO Peter Fong is setting the bar high, too, as he sees the brand being "a notch above Lincoln, a notch above Cadillac."
You may recall former parent Daimler had similar aspirations for the Chrysler brand, with vehicles like the 300 and Pacifica leading the way. While the 300 had some success and commanded a reasonably high MSRP, the Pacifica was a comparative failure. Then Chrysler followed up with the Sebring, which put to bed any hopes and prayers for an upscale Chrysler brand. Fong told Automotive News that Chrysler needs to be better differentiated from Dodge; a nameplate that management wants to be known more for driving dynamics. The only marque that will likely remain largely intact after Fiat's sweeping changes is Jeep, and even then, the Jeep lineup will likely receive more small, front-wheel drive-based vehicles in an effort to satisfy increasingly stringent CAFE standards.
While we can see how a more upscale Chrysler brand would be a great idea, we're having a hard time seeing how the Pentastar's namesake will catch up to Cadillac (or its competitors) any time soon. The resurgence of the Wreath and Crest has been seven years in the making, and even now the brand's success essentially rides on one product – the CTS. New models like the BMW 3 Series-fighting ATS and large and luxurious XTS promise to rebuild some of the momentum that Cadillac has recently lost, but even that remains to be seen. Chrysler, on the other hand, currently has nothing that can reasonably be said to compete with Cadillac, and judging from comments made by Fiat CEO Sergio Marchionne, there isn't anything in the pipeline, either. It's good to dream, though, right?
09-21-09, 11:02 AM
#2
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Chrysler-Fiat's grand brand plan
Product strategy calls for an upscale Chrysler, a more refined Dodge and a wider range of models
Luca Ciferri
Automotive News | September 21, 2009 - 12:01 am EST
FRANKFURT -- A Chrysler brand with more luxury than Cadillac.
A Dodge brand known for driving dynamics.
A Jeep lineup that is -- well, Jeep.
And vehicles to cover every market segment so that wildly fluctuating fuel prices won't destroy sales.
That's the rosy outline that's emerging as Chrysler Group and Fiat executives plot Chrysler Group's product portfolio.
Chrysler Group's three brand chiefs are attempting to define clearer brand identities as they fit together a much broader product portfolio that will take advantage of platforms and powertrains from Fiat.
Chrysler plans to go public with an outline of the product plan in November. The lineup seeks to reduce Chrysler's dependence on minivans and trucks.
Given the volatility of fuel prices, "We're going to have to offer a broad array of products across every one of the segments," said Peter Fong, Chrysler brand CEO and head of sales for all the brands. He wants to take the Chrysler brand upscale, but he's considering a subcompact entry.
Fiat S.p.A. and Chrysler Group CEO Sergio Marchionne reorganized Chrysler along brand lines after Chrysler emerged from Chapter 11 reorganization June 10. Fiat owns 20 percent of Chrysler.
Michael Manley, CEO of the Jeep brand and head of product planning for all the brands, vowed that while Fiat technology and platforms will be part of the plan, "You won't see Fiat DNA in our brands."
The three brand chiefs and other Chrysler executives are planning to separate Dodge from Chrysler more clearly and take Chrysler into a more luxurious position. Since the vast majority of Chrysler Group's sales are at stores that carry all three brands, the group can avoid similar offerings from two brands.
The brand chiefs outlined their aspirations in an interview with Automotive News at the Frankfurt auto show.
'Jeep is Jeep'
"We began analyzing the market and consumer trends in the U.S. and in Europe for the next decade to get the information to see where each of the brands should be," Manley said.
He had the easiest job, he said, because "Jeep is Jeep."
The Chrysler and Dodge brands required more work, in part because they share sister models, such as the almost identical Dodge Grand Caravan and Chrysler Town & Country minivans.
By contrast, a single large-car platform provides an example of how Chrysler and Dodge can be distinctive while sharing.
"The [Chrysler] 300 and the [Dodge] Charger share the same underpinnings, but they attract two different customers, so they are already in the right direction," said Michael Accavitti, Dodge CEO and head of marketing for all the brands.
Accavitti said the Dodge brand needs to evolve, transforming the muscle-car spirit from brute force to driving dynamics. Dodge will go "from a middle linebacker to Lance Armstrong," he said.
"We will remain a sporty brand, with a lot of emphasis on the performance area, but also on better fuel economy, benefiting from the great technologies Fiat is bringing to us," Accavitti said.
Chrysler looks upscale
Fong envisions the Chrysler brand as "a notch above Lincoln, a notch above Cadillac." This suggests a substantial change, because Chrysler vehicles generally sell for many thousands of dollars less than Cadillacs.
"The [Chrysler] Sebring and the [Dodge] Avenger attract different customers, but their prices are too close to each other," Fong said.
Accavitti and Fong vow to separate Chrysler and Dodge.
"It is a dead process to have small differences which erode the brands," Accavitti said. "Today customers want a focused viewpoint. Our mission, consequently, is to separate and amplify what a brand is about."
Manley's job at Jeep will focus more on fine-tuning than reinventing. The off-roading Wrangler will remain the image-maker, he said, although the brand is broad enough to continue include front-drive vehicles such as the Patriot or Compass crossovers.
"For CAFE reasons, Jeep should remain relevant in smaller segments," Manley said.
Until November, when the company reveals the product line, the brand CEOs are revealing little about specific vehicles.
They did suggest that the minivan twins should be more sharply differentiated as the group strives to maintain its dominant position in the segment.
"Chrysler Group has 40 percent share in minivans, a segment we owned since we created it in 1983," Fong said.
"Our target is winning customers away from Honda and Toyota rather then stealing them from our other brand."
Product strategy calls for an upscale Chrysler, a more refined Dodge and a wider range of models
Luca Ciferri
Automotive News | September 21, 2009 - 12:01 am EST
FRANKFURT -- A Chrysler brand with more luxury than Cadillac.
A Dodge brand known for driving dynamics.
A Jeep lineup that is -- well, Jeep.
And vehicles to cover every market segment so that wildly fluctuating fuel prices won't destroy sales.
That's the rosy outline that's emerging as Chrysler Group and Fiat executives plot Chrysler Group's product portfolio.
Chrysler Group's three brand chiefs are attempting to define clearer brand identities as they fit together a much broader product portfolio that will take advantage of platforms and powertrains from Fiat.
Chrysler plans to go public with an outline of the product plan in November. The lineup seeks to reduce Chrysler's dependence on minivans and trucks.
Given the volatility of fuel prices, "We're going to have to offer a broad array of products across every one of the segments," said Peter Fong, Chrysler brand CEO and head of sales for all the brands. He wants to take the Chrysler brand upscale, but he's considering a subcompact entry.
Fiat S.p.A. and Chrysler Group CEO Sergio Marchionne reorganized Chrysler along brand lines after Chrysler emerged from Chapter 11 reorganization June 10. Fiat owns 20 percent of Chrysler.
Michael Manley, CEO of the Jeep brand and head of product planning for all the brands, vowed that while Fiat technology and platforms will be part of the plan, "You won't see Fiat DNA in our brands."
The three brand chiefs and other Chrysler executives are planning to separate Dodge from Chrysler more clearly and take Chrysler into a more luxurious position. Since the vast majority of Chrysler Group's sales are at stores that carry all three brands, the group can avoid similar offerings from two brands.
The brand chiefs outlined their aspirations in an interview with Automotive News at the Frankfurt auto show.
'Jeep is Jeep'
"We began analyzing the market and consumer trends in the U.S. and in Europe for the next decade to get the information to see where each of the brands should be," Manley said.
He had the easiest job, he said, because "Jeep is Jeep."
The Chrysler and Dodge brands required more work, in part because they share sister models, such as the almost identical Dodge Grand Caravan and Chrysler Town & Country minivans.
By contrast, a single large-car platform provides an example of how Chrysler and Dodge can be distinctive while sharing.
"The [Chrysler] 300 and the [Dodge] Charger share the same underpinnings, but they attract two different customers, so they are already in the right direction," said Michael Accavitti, Dodge CEO and head of marketing for all the brands.
Accavitti said the Dodge brand needs to evolve, transforming the muscle-car spirit from brute force to driving dynamics. Dodge will go "from a middle linebacker to Lance Armstrong," he said.
"We will remain a sporty brand, with a lot of emphasis on the performance area, but also on better fuel economy, benefiting from the great technologies Fiat is bringing to us," Accavitti said.
Chrysler looks upscale
Fong envisions the Chrysler brand as "a notch above Lincoln, a notch above Cadillac." This suggests a substantial change, because Chrysler vehicles generally sell for many thousands of dollars less than Cadillacs.
"The [Chrysler] Sebring and the [Dodge] Avenger attract different customers, but their prices are too close to each other," Fong said.
Accavitti and Fong vow to separate Chrysler and Dodge.
"It is a dead process to have small differences which erode the brands," Accavitti said. "Today customers want a focused viewpoint. Our mission, consequently, is to separate and amplify what a brand is about."
Manley's job at Jeep will focus more on fine-tuning than reinventing. The off-roading Wrangler will remain the image-maker, he said, although the brand is broad enough to continue include front-drive vehicles such as the Patriot or Compass crossovers.
"For CAFE reasons, Jeep should remain relevant in smaller segments," Manley said.
Until November, when the company reveals the product line, the brand CEOs are revealing little about specific vehicles.
They did suggest that the minivan twins should be more sharply differentiated as the group strives to maintain its dominant position in the segment.
"Chrysler Group has 40 percent share in minivans, a segment we owned since we created it in 1983," Fong said.
"Our target is winning customers away from Honda and Toyota rather then stealing them from our other brand."
09-21-09, 04:42 PM
#5
I can see their point of view. Yes, it can work. The differentiation is necessary.
I just don't know how they can pull it off and still be profitable. Chrysler used to be classy like Cadillac a long time ago, but the damage is done. Current market perception of the brand is very tainted, and I don't know if they can survive that...
I just don't know how they can pull it off and still be profitable. Chrysler used to be classy like Cadillac a long time ago, but the damage is done. Current market perception of the brand is very tainted, and I don't know if they can survive that...
09-21-09, 08:14 PM
#6
Lexus Fanatic
cadillac competitor??? They should try to compete with ford and GM first then maybe the japanese mid range cars. I wouldnt buy a high end car from Chrysler. They must be high
09-21-09, 08:23 PM
#7
Lexus Fanatic
iTrader: (20)
chrysler above cadillac? maybe those two should be renamed dumb and dumber. 
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I thought the craziness was worn off when Jim Press left (aka "Chrysler will compete with Mercedes" or something like that).
09-22-09, 03:48 AM
#11
Hey, atleast they didn't say they wanted to be comparable to Lexus... 
In the heydays, Chryslers were up there with Caddys, with the 5th Avenue and such. Unfortunately, those days are long gone and probably never to return.
Someone said maybe they should catch up to Hyundai first... I think many will be trying to catch up to Hyundai soon.
In the heydays, Chryslers were up there with Caddys, with the 5th Avenue and such. Unfortunately, those days are long gone and probably never to return.
Someone said maybe they should catch up to Hyundai first... I think many will be trying to catch up to Hyundai soon.
09-22-09, 04:15 AM
#12
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We shouldn't call this goal impossible. We have witnessed first hand very damaged brands make such huge strides and completely change perception.
Do I have to mention Hyundai? They used to be known for nothing more than the horrible Excel. Now they build the superb Genesis. Just 5 years ago, we would have laughed if Hyundai claimed that they'd have a car like the Genesis.
Cadillac itself? Cadillac was absolute junk through the '90's and only has gotten realistically competitive with the latest CTS.
Other brands have made huge jumps recently as well. Point is, nothing is impossible.
And let's face it, Chrysler is the only major company without a luxury line. It's about time they do it.
Do I have to mention Hyundai? They used to be known for nothing more than the horrible Excel. Now they build the superb Genesis. Just 5 years ago, we would have laughed if Hyundai claimed that they'd have a car like the Genesis.
Cadillac itself? Cadillac was absolute junk through the '90's and only has gotten realistically competitive with the latest CTS.
Other brands have made huge jumps recently as well. Point is, nothing is impossible.
And let's face it, Chrysler is the only major company without a luxury line. It's about time they do it.
09-22-09, 08:33 AM
#14
Lexus Fanatic
Accavitti said the Dodge brand needs to evolve, transforming the muscle-car spirit from brute force to driving dynamics. Dodge will go "from a middle linebacker to Lance Armstrong," he said.
09-22-09, 09:33 AM
#15
Lexus Test Driver
Hey, atleast they didn't say they wanted to be comparable to Lexus...
In the heydays, Chryslers were up there with Caddys, with the 5th Avenue and such. Unfortunately, those days are long gone and probably never to return.
Someone said maybe they should catch up to Hyundai first... I think many will be trying to catch up to Hyundai soon.
In the heydays, Chryslers were up there with Caddys, with the 5th Avenue and such. Unfortunately, those days are long gone and probably never to return.
Someone said maybe they should catch up to Hyundai first... I think many will be trying to catch up to Hyundai soon.