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Chrysler to end badge-engineering, create three-brand dealerships

02/07/2008, 11:26 PM

By admin

Auto industry watchers were surprised by Chrysler’s swift move to kill-off five models late last year, but there are more product eliminations and dealer reorganization on the way, said Chrysler co-President Jim Press. Called “Project Genesis,” a new strategy at Chrysler calls for the aelimination of so-called “badge-engineered” vehicles, plus the consolidation of many Chrysler, Dodge, and Jeep dealerships into single stores.

Press said Chrysler’s new owner, Cerberus Capital Management, realizes the automaker has too many duplicate products, and several may have to be eliminated, according to Automotive News. He didn’t say what vehicles those might be, but some obvious names come to mind. The Jeep Compass, for example, has experienced slow sales compared to the Dodge Caliber on which it is based. The Dodge Avenger and Chrysler Sebring are also very similar, as are the Jeep Liberty and Dodge Nitro. It’s not known if any of those products are on the chopping block.

To deal with an excessive number of unprofitable dealerships, Cerberus plans to merge several Chrysler, Dodge, and Jeep outlets into “one-roof” stores. The plan will eventually affect nearly all dealers, though Cerberus is not currently planning to put a large amount pressure on dealers to consolidate. Rather, Cerberus hopes to guide them toward mergers that would ultimately increase profitability for everyone.

In late 2007, Cerberus famously axed the Dodge Magnum, Chrysler PT Cruiser Convertible, Chrysler Pacifica, and Chrysler Crossfire. However, discontinuing cars isn’t the only component to the company’s product strategy, Mr. Press said. The automaker will also focus on creating new vehicles for segments in which it currently does not compete.

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02/07, 11:42 PM

posted by:

F451

Am I the only one who senses a fire sale in the works on various Cerberus vehicles? No more re-badging? Re-badging is an American automotive standard!

02/08, 12:07 AM

posted by:

A4

project genesis? maybe hyundai will put their badge on that

02/08, 12:35 AM

posted by:

AxeHead

The only people going to Chrysler will be Challenger buyers – everything else can be axed.

02/08, 12:43 AM

posted by:

A4

bologna, keep the charger, keep the magnum even though they wont, keep anything with a Hemi in it essentially, rape the sebring in the proverbial tailpipe, that hideous thing would love to get laid.

02/08, 1:31 AM

posted by:

jdasch1

It all some day be sold off a piece at a time. First Jeep, then Chrysler Financial, then the rest. Its a private equity fund that owns it all, so we will never really know how it all settled out it the end. Non car people now own it, and they don’t have the heart or time to make it survive. Buyer beware with the new Chrysler…and their products. Now with a new LIFETME warrenty…LMAO!

02/08, 2:31 AM

posted by:

Veda

^^ That sounds like what’s gonna happen.

02/08, 7:38 AM

posted by:

DeansterTJ

I would hardly call the Sebring/Avenger a badge engineering job. Chrysler isn’t really guilty of that.

What’s really stupid is the way they spelled “elimination” in the article with an “ae” (aelimination).

02/08, 8:06 AM

posted by:

Syrax

americans use Æ? or was it just another lln mistake? anyway…i always believed in the pacifica: it’s a good looking car, got some power, some space, was just marketed wrong. and of course the gray utopia interior plastic didn’t help.

02/08, 8:28 AM

posted by:

purdue

Yes, Pacifica is nice. I always drive almost everything I comment on.
The Jeep Compass, imo, drives VERY NICE. Powertrain withstanding, I liked the ride better than the BMW X3.
The Patriot is even better, having the 2.4l mostly standard. Plus, they are very good price points. The caliber, the other one made at the facility, is another tune. Not that great. I think they should keep the Patriot, perhaps chop the top and offer a soft-top, and ditch the compass, and redo the Caliber to be more Vibe-like.

02/08, 9:42 AM

posted by:

MikeFX

Look down the road and this actually makes sense. Toyota has Lexus and Scion, with almost no overlap and no inter-company competition. Chrysler could really be one company with unique brands that don’t compete with each other like they do now. You stop at one dealership to look at Jeep 4×4s, Dosge performance cars, or Chrysler luxury cars. No more silly crap like the Compass gets made since the Caliber covers that market, and Jeep stays all Trail Rated.

02/08, 9:57 AM

posted by:

SS4LIFE

This sounds like a smart move for Chrysler. I def agree with what everyones’ saying too. Chrysler certainly doesn’t have the amount of badge engineering that Ford or more notoriously GM does, the only product that I think the multiplied on they only did it across the Dodge and Jeep brands is the Caliber/Compass. I think they are both hideous and I think the Compass has no place in the Jeep line up. Jeep is starting to look a lot like Hummer in my eyes. The Jeep Grand Cherokee is becoming larger and less off road capable (compared to one of the 90’s) and now with the Compass, Jeep beware. Kill the Compass, the Patriot will take its place and I do like the Patriot. I just think that should be their lowest entry Jeep instead.

02/08, 10:43 AM

posted by:

SwerveEarly

Bring back Lee Iaccoca, “Imported for Dodge”, the Omni GLH-S and the K-car.

02/08, 11:09 AM

posted by:

SwerveEarly

Jeep is one of the most marketable names in the world. Watering it down is a shame. Wrangler is great, unique and an icon. But everythng else is failing on delivering the “Jeep” mission. Cherokee is getting soft and Libery has gotten fat and anonymous. The other 3 models are an embarasement to the Jeep name and a spit in the face to its credability. A diesel for Wrangler, a Wrangler truck (scrambler) and a Suzuki samarai size smaller Wrangler should be Jeeps priorities. Fix the Cherokee and Liberty after killing the Copmass/Pat/and that big fat thing.

02/08, 11:26 AM

posted by:

johnnycanuck

With the exception of canning the Magnum, I like everything I’ve heard coming out of Cerberus so far. They’re addressing the plastic fantastic interior issues and plan on eliminating the dead weight in their product lineup. Good start. Now they need to reread their own history, tear out the any of the chapters where the word Daimler appears, and try to recreate that magic and momentum they had begun to build in the early nineties. Their success or failure depends solely on the two cornerstones that served Chrysler so well in the past: innovative design and engineering. Buyers do a lot more research in selecting a new vehicle than they did in the past, but never discount the ‘wow’ factor. If you can get people into the showroom just to see what all the fuss is about, the rest of the sales process just becomes a whole lot easier.

02/08, 11:49 AM

posted by:

kgm777

Does this mean the Chrysler 300 Home Depot Edition is officially dead?

02/08, 11:53 AM

posted by:

purdue

Iacocca? You mean, the olive oil king?

http://www.olivioproducts.com/

02/08, 12:18 PM

posted by:

CTS DRIVER

holy crap no wonder, look hoh friggin ugly that jeep in the picture is, i mean damn its just the ugliest car in america.

02/08, 1:22 PM

posted by:

maximus

Badge Engineering? What kind of engineering skills does that take anyways?

02/08, 2:36 PM

posted by:

jamak

The pacifica is junk. I passed one just yesterday burning to the ground at the side of the highway.

02/08, 2:47 PM

posted by:

Jake1

I’m with SwerveEarly’s comments.

02/08, 3:28 PM

posted by:

corvette

looks like Cerberus is doing the right things.

02/08, 4:03 PM

posted by:

F451

This article might explain a lot: Chrysler’s Draconian Diet

02/08, 5:31 PM

posted by:

mazdaman

It appears as though they are well on their way to getting themselves back on track. They are forming a cohesive strategy that consists of many suggestions that I have read in the posts on this forum:
1) Redefine and reposition the brands so that they are relevant in the market.
2) Streamline the lineup of each brand so that each brand only sells products that support the brand’s image and position in the market.
3) Improve styling, execution, and materials in addition to exploring advances in technology to become competitive in the market.
If Chrysler LLC/Cerberus can properly execute these steps and consolidate their dealerships, then they can transform their company into a lean, competitive, and profitable success story. It would be great to see Chrysler healthy and competitive once again.

The only question I have is this: does Chrysler LLC have a true “car guy” on their management staff to oversee the product realignment/development process? If they do, GREAT! If they don’t, I think acquiring someone with this type of vision would help them immensely with their turnaround plan.

02/08, 6:04 PM

posted by:

Scott Kempton

Both of these seem like good moves to me.

So far, Chrysler has told us what they’re going to STOP building. The two concepts I saw in Detroit a few weeks ago sure weren’t very encouraging, so it’d sure be nice to see a few really exciting cars that they’re going to START building.

02/08, 6:28 PM

posted by:

CA36GTP

Let me be the first to say: DUH!

02/08, 7:40 PM

posted by:

CarStar

Ending badge engineering sounds like a good idea, but I can see where you can build several platforms off a common architecture and still get cars with different flavors that match their marketing position.

The new Dodge Challenger is based on the Chrysler 300 and Dodge Charger/Magnum. I personally would love to own a copy. I wouldn’t mind the Charger either. Both have an agressive, athletic appeal. However, the Chrysler is too glitzy and formal-looking. I would never buy the Chrysler version. The same is true of the Nitro and Caliber. I would much prefer these over the Jeep version.

Badge engineering is rampant at all the automakers. Right now, you can buy a Toyota Camry or you can buy the luxury version, the Lexus ES330. The same is true of Nissan/Infinity and Honda/Acura models. When you they want to create a luxury car, they simply use the economy car as a base.

GM has several models based on one platform. Buick’s version of the Lambda platform looks totally different than the Chevrolet. But I would much rather have the Chevy version. Ford and Lincoln-Mercury are also badge-engineered. Volkswagens are sold as Audi’s, SEAT’s, or Skoda’s, depending on marketing position. I see nothing wrong with it, as long as the models stay true to their purpose and pricing.

I hope Chrysler will not cancel models simply because there is an perceived overlap among models. All of the models they now have should stay in production. They just need to focus on restyling some recent mistakes like the Dodge Caravan (looks too short; a throwback to the original Caravan), the Dodge Avenger (looks over-styled), and the new Ram Pickup (looks like a Mustang when it should have been more like a semi…the recent Dodge Power Wagon concept or the newer Ford F250’s). Cerebrus needs to see where it went wrong with its recent launches.

02/08, 8:28 PM

posted by:

Get Real

I thought the Pacifica was a great idea.

However, after previous FWD Chrysler experience I will never touch one.

Does the tailpipe sex comment have anything to do with the fat virgins from previous posts ???

02/08, 8:45 PM

posted by:

SS4LIFE

The Pacifica was a great idea. It pretty much introduced of what we now call the CUV as I believe the Pacifica was pretty much the first Domestic CUV. Others may beg to differ. I also liked how the nav screen was in the gauge cluster. If one thing Chrylser is good at. It’s inventing new segments just like they did with the Caravan and minivans.

While I personally don’t own a 4X4 I go with some friends off-roading up in northern Michigan on some sand dunes, and some pretty crazy hills. The one vehicle that I do not see out there anymore is the Jeep Grand Cherokee. I mean I’ve seen them but I usually see them struggling to make it up a 300+ ft sand dune with a 60 degree + incline. While the Wrangler will always be the king of off-roading, it’s sad when I see more H3’s out on the trails then I see newer model Cherokees. Don’t even ask me if I see any H2’s.

02/08, 8:46 PM

posted by:

SS4LIFE

or the Commander…

02/08, 10:52 PM

posted by:

autonut

SS4LIFE, I think the first CUV was original 4 cylinder Honda Odyssey. It was a car with 6-7 seats (4-5 were extremely comfortable) and car doors. it was light, quick enough for its time and efficient (although gas was less then $1/gallon). It was not beautiful, but please point to a beautiful CUV 14 years after Honda introduced Odyssey. And I don;t mind driving Hondas after experience with them.

02/09, 1:56 AM

posted by:

zoomzoomr

I think this consolidation has been a long time coming, particularly with the Cerberus buyout.. but it disturbs me that some of the vehicles that they have already cancelled are the most unique in their segments (such as Magnum, Pacifica and PT Cruiser convertible). Hopefully the realignment will allow Chrysler to be a truly upscale near-luxury brand, Dodge to focus on trucks and performance vehicles, and Jeep to get back to its SUV basics.

For Chrysler, I would keep the 300/300C (and resuscitate the Magnum as the 300C Touring) and Town & Country (but only the premium trim levels), develop a stylish new RWD midsize vehicle to replace the Sebring sedan and convertible (preferably based on the Nassau concept styling), and completely rebody and upgrade the Aspen to differentiate it from the Durango (or even move it to the larger Ram platform to really set it apart, though that may not be wise in these pricey fuel times). The PT Cruiser — though once a trendsetter — isn’t really relevant anymore and no longer fits Chrysler’s upscale brand image, so it should be quietly put to rest. An Imperial could appear later as Chrysler’s flagship.. but definitely NOT the concept they showed!

Dodge should keep its core Caliber, Avenger and Charger sedans and of course the new Challenger. I’d like to see a 5-door Avenger added (based on the earlier Avenger concept) to fill the space of the Magnum, and the Grand Caravan would continue to cover the minivan market. The new Journey crossover is nice enough, but seems to lack style compared to the Pacifica it essentially replaced. Viper should remain, and the smaller Demon roadster should be added (even if they build it on the FWD Caliber platform). The Durango, Dakota and Ram trucks should also continue.. but Dodge needs to kill the redundant Nitro!

Jeep should go back to its SUV roots and immediately axe the psuedo-crossover Compass. Patriot could remain as the entry-level Jeep, but the Liberty needs a quick restyle to remake it as a Jeep people want to aspire to, instead of just a lightly reskinned Nitro. The Grand Cherokee is established and should continue on its current path, but the only way the faux-fullsize Commander should continue is with a truly larger 7-seater platform (perhaps that of the Durango/Aspen or even the Ram). Any and all variations of the Wrangler are welcome, as they rightly define this brand.

Just a few recommendations for Cerberus.. does anyone else agree?

02/09, 10:27 AM

posted by:

purdue

How much money do classic jeeps bring in in comparison to girly 4×4s from Toy/Honda? Probably not much. Chrysler should sell the Jeep brand and just have SUVs or CUVs or whatever term the girls like, and go with swoopy, take your girlfriend secretaries to lunch design with NPR or Oprah fixed on the radio. That’s the way america SHOULD roll.

02/09, 12:33 PM

posted by:

F451

If you go back to Jeep’s (Willys) beginnings is was a different story and when Jeep actually achieved its branding, plus, worldwide recognition. Like so many other things American, the custodians to such ironic brands fell asleep at the wheel. Jeep would be better off in other hands.

02/09, 1:32 PM

posted by:

rsg

I like this idea. Make Dodge reasonably priced cars and pickup trucks/ vans/ crossovers, Chrysler higher end cars and Jeep real SUV’s. Oh and for the inevitible rental fleet, strip the cars, put different grilles and lights and call them Plymouths (Chrysler Sebring/ Plymouth Fury, or something). Then the retail cars won’t be watered down by their “rental fleet” image.

02/10, 1:14 AM

posted by:

SS4LIFE

Interesting autonut, I didn’t know that. I always thought the Odyssey was just a minivan.

02/16, 12:44 PM

posted by:

jackjimturkey

Pacifica was a good idea, the execution didn’t work for me. Commander was a bad idea

 
 
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