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Chrysler to industry: Minivan segment is not dying

04/24/2008, 12:34 PM

By Drew Johnson

Some of the industry’s largest automakers have abandoned the minivan segment — such as General Motors and Ford — to find greener pastures in the ever-growing crossover segment, but Chrysler continues to hang on to its minivan heritage — which dates back all the way to 1984. Despite the claim that the minivan segment is dying, Chrysler is adamant about proving the critics wrong about minivan market.

Stuart Schorr, Senior Manager, Sales, Mopar and Dealer Communications, says that “minivans are a strong and profitable part of the market, serving the needs of hundreds of thousands of families.” Moreover, Schorr says that minivans are still doing quite well in the market. Despite a 9 percent dip in the overall market and Chrysler’s model reduction to just two minivan models — the Chrysler Town & Country and the Dodge Grand Caravan — Chrysler’s minivan sales have remained flat.

“The minivan segment is not a niche segment,” Steven Landry, Chrysler Executive Vice President – North American Sales, told Bloomberg in an interview. “It is a very profitable and volume-oriented segment for Chrysler.”

For 2008, Chrysler dropped the short-wheelbase version of its minivans and will only offer the more profitable long-wheelbase versions from here on out. The recently launched Dodge Journey is intended to pick up some of that slack, but it remains to be seen how Journey sales will impact Chrysler’s minivan sales.

But if the minivan segment is as alive and well as Chrysler says it is, it leads us to wonder why other automakers have abandoned the segment all together. However, fewer competitors doesn’t appear to be a good thing for Chrysler as Honda’s Odyssey nearly dethroned Chrysler’s offerings as the most popular minivan in the U.S.

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04/24, 12:43 PM

posted by:

Need4SSpeed

I guess all the soccer moms haven’t switched from minivans to CUV’s yet…

04/24, 12:52 PM

posted by:

gizmo2

The market will not die. It just won’t be a booming market as it was, just like SUVs

04/24, 12:56 PM

posted by:

F451

I agree. Anything that is practical will live on in one form or another.

04/24, 1:08 PM

posted by:

johnnycanuck

I miss the old short wheelbase first generation with the 2.2 and the 5 spd manual. They were fairly light, borderline fun to drive, economical and handy as hell. If Chrysler would bring that back with say the 148 horse 1.8 Caliber motor I would buy one. I guess they know best, but not every one needs a V6 and power everything to get to a soccer game or pick up groceries.

04/24, 1:09 PM

posted by:

jayjc08

The Odyssey looks like it took a few steps back into the past…

Just like those trippy commercials.

04/24, 1:18 PM

posted by:

xyunya

johnnycanuck, better were with 2.4L mitsubishi motors. Those minivans were actually minivans. Current ones are definitely supersized.

04/24, 1:27 PM

posted by:

AMGoff

If their sales have remained steady despite a 9% drop in the overall market and a reduction in models offered… then Chrysler’s still on to something and has no reason to jump ship on the vehicle that saved the company way back when minivans were “in” and wagons were “out.” I still think that when it comes to sheer practicality, nothing comes close to the minivan… and the new ones today offer even more incentive than ever.

And despite whatever Mr. FordTaurusForever would have to say… I also still think that the minivan goes down as Henry Ford’s greatest blunder… Ford could have really cashed in, but Henry II was too obtuse to realize the potential. Just another example as to why Ford’s greatest threat to their own success has been and still is – the Ford family.

04/24, 1:29 PM

posted by:

Need4SSpeed

yeah for real AMGolf, The Ford family is also to blame for why the Detroit Lions suck…

04/24, 1:34 PM

posted by:

HemiRoadRunner

I just saved a ton of money on my car insurance by switching to Geico.

04/24, 2:19 PM

posted by:

tripleonefive

Hicks cant afford car insurance

04/24, 2:22 PM

posted by:

eliteski2

I feel like staying in the minivan market is quite a gamble by chrysler, who doesn’t have a lot to gamble with. My feeling is that they’ll lose big because of this decision. The facts that minivans have such a negative stigma, and the much cooler CUV’s coming out are equally as practical will spell disaster for all minivans. That is unless minivans can implement new, fun technology, and extend their useability, which chrysler has tried to do with the stow/swivel ‘n go seats.

04/24, 2:35 PM

posted by:

AMGoff

eliteski….

Exactly… as long as the continue to add more features which enhance their practicality, then there will always be some appeal. Everything’s cyclical… remember when station wagons were “out?” But in recent years they’ve enjoyed a certain comeback that I would have never predicted would happen. Minivans may have a stigma… but they’re still generally more practical, offer more room, and are cheaper than these CUVs… If nothing else, they’ll always be an attractive alternative to those with large families and a shoe-string budget.

04/24, 2:57 PM

posted by:

eliteski2

I hope that you are right, and minivans continue to make money. However, I don’t think they will ever again be the boom market they once were. At least not in the years to come. I know it’ll take more than swiveling seats and two DVD screens to get me to buy one…

04/24, 3:03 PM

posted by:

Me

Well eliteski2, they do have a stigma, but to say that a CUV is equally as practical is a bit of a stretch. This is not a dig, but I’d bet you either don’t have 2 or more kids or you’ve never owned a newer minvan. I dare you to find CUV that can hold as much stuff as our Nissan Quest. We average about 4500 miles a year in vacaton miles with three kids and luggage, toys, etc. We have plenty of room to spare. Fully loaded and a total average speed of 60-65 mph per trip still yeilds about 22 miles to the gallon. Features like power rear and side doors, rear DVD, and fold flat captain chair seats (and rear bench) are the icing on the cake. They ride and handle better as well.

04/24, 3:45 PM

posted by:

i64X

I’m 25 and I’d drive a Mazda 5… for sure. I’ve always loved the looks of those things, and with the manual trans option, I’d guess it might actually be kinda fun to drive (for a van). That being said I’ve sat in the new Odysseys, and if someone else was paying for it I’d drive one of those too. The rest of the vans… meh.

04/24, 3:47 PM

posted by:

i64X

The term “CUV” is a joke to me.

It’s for people who are too awesome (in their own regard) to admit that they need a van… but don’t want to look like anti-environmental a__holes by driving an SUV. A “CUV” is basically a more useless SUV that still gets crappy mileage and hauls LESS stuff than your average SUV.

If you’ve got crap to tote around, vans > SUVs, and vans > CUVs. If you don’t, buy a car.

04/24, 3:51 PM

posted by:

beantownslut

Safe sex= no need for a minivan.
Get a flex.

04/24, 4:02 PM

posted by:

i64X

I’d rather get the original Flex… the XB.

04/24, 4:34 PM

posted by:

jumpoffit

i always thought the Nissan Quest looked good compared to the other Vans on the market

04/24, 4:37 PM

posted by:

i64X

Have you ever seen the dash of the Quest?

I couldn’t stand to drive that.

04/24, 6:21 PM

posted by:

DeansterTJ

Chrysler is right, the minivan segment is not only alive and kicking, but will continue to grow like crazy in the next 20 years. The minivan is the official car of the muslim family in North America. As muslims multiply like ****ing rats, they buy millions of T&C’s and Caravans.

04/24, 7:28 PM

posted by:

eliteski2

Deanster,
With that in mind, they should start building the Astro van again; vehicle of choice for Mexican families.

A Quest looks like a Stegosaurus. They should rename it the Stego!

04/24, 10:01 PM

posted by:

autonut

Chrysler is right: Honda Odyssey is proof of it.

04/24, 10:36 PM

posted by:

johnnycanuck

Deanster: one day I wish you would tell us how you really feel.

04/24, 11:53 PM

posted by:

400horseSS

Yeah I remember those old Mitsubishi engines, smoking me and everyone else out at the stoplight, POS!

04/25, 2:48 PM

posted by:

nitinsharma1000

Yeah but the official car of the muslim family is usually a beat up, puked in, hummus spilled, dark green, used minivan.

04/26, 10:07 AM

posted by:

jackjimturkey

Minivans aeem to be the only things Chrysler can sell. I had a Journey last week. Seemed like they took the ‘95 Intrepid and changed the parts around. Not impressed.

Probably would’ve made more sense for me to get a Grand Voyager, but screw that.

 
 
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