TriShield

Dodge’s Future and Other Questions Loom at Fiat-Chrysler



Jun. 12, 2013 by Haig Stoddard

The year 2016 appears a pivotal one for Fiat-Chrysler in North America.

Although the decisions will be made before then, 2016 will be the apex of several product upgrades and plant sourcing moves that started in late 2010, one year after Fiat took part ownership in Chrysler, and continues to ramp-up to what will be a flourish of changes in 2016, based on information in the WardsAuto/AutomotiveCompass Global Production Forecast.

However, there are some open-ended questions regarding the Fiat-Chrysler landscape still to be answered pertaining to its manufacturing footprint and long-term brand strategy, especially the future of Dodge.

Not counting the sales-invigorating mid-cycle enhancements, such as those made three years ago to the Chrysler 200 and Dodge Avenger and last year's upgrades to the Jeep Grand Cherokee and Ram pickups, about 16% of Chrysler’s annual production volume has been renewed either through redesigns or new products since late 2010 when the auto maker started production of the Fiat 500 at Chrysler's Toluca, Mexico, plant.

Beginning with production of the new Cherokee this month at Toledo North, an additional 60% of its volume will be renewed by the end of 2016, with most of it coming in that year.

A couple more redesigns of existing products coming in 2017 will largely complete the engineering overhaul that started when Fiat first took an equity stake in Chrysler in 2009.

However, by the end of 2016, more than three-fourths of the production volume for Fiat-Chrysler’s cars and cross/utility vehicles will be based off the Fiat-engineered C/D-Evo, or CUSW, platform.

The CUSW platform underpins the current Dodge Dart built in the Belvidere, IL, plant, and the new Chrysler 100 coming to the plant in 2016. The next-generation Chrysler 200 and Dodge Journey/Fiat Freemont replacement, both to be built in Sterling Heights, MI, plus the Cherokee, all will come off that platform.

Also expected in 2016 are a redesigned Jeep Wrangler and a new Large Luxury Chrysler cross/utility vehicle, which starts production in Windsor, ON, Canada, one year after a redesigned Town & Country minivan rolls off the line.

Based on the Wards/AC outlook, Ram pickups are expected to begin a phase-in of newly engineered versions in 2016.

Aside from that detail, there are some open-ended questions. Most intriguing is the future of Dodge.

The brand will have no bread-and-butter midsize sedan after the Avenger ends production early next year, leaving a gaping hole in its portfolio, which already was severely trimmed by the decision to move the manufacturer’s pickups from Dodge to the recently created Ram brand.

Furthermore, industry sources tell Wards/AC that there will be more thinning of the Dodge ranks with at least two products already pegged to either migrate to the Chrysler brand or be discontinued.

Another unanswered question is what the auto maker plans to build at its Toluca plant once North American sourcing for the 500 switches to a Fiat plant in Poland in 2015, and the Journey replacement shifts to Sterling Heights.

Closing the plant is not likely. Fiat-Chrysler needs the capacity and it is still relatively inexpensive to assemble vehicles in Mexico. Mexico also is a good jumping board for exports to South America.

Putting the pieces together, a likely candidate for Toluca is a Fiat-based Jeep product, probably off the CUSW platform, slotted in the market between the new Jeep B-size CUV expected to be coming from Italy in 2015, and the C/D-size Cherokee.

Such a vehicle could be considered as a replacement for the Jeep Compass and Patriot, two very similar CUVs built off the same platform in Belvidere. Coincidently, the production run of the Compass/Patriot, initially slated to be terminated from the lineup next year, has been extended to 2015, the same year the 500 ends at Toluca. Also, the Compass is exported to South America, and it is feasible a Mexico-built Jeep could replace it there.

Whatever is going on behind the scenes at Fiat-Chrysler, including the possibility of further culling, or even getting rid of the Dodge brand, expect the string of news-making announcements that began when Fiat took a stake in Chrysler four years ago to continue. But 2016 looks like the year all the pieces will more-or-less be in place.

http://wardsauto.com/blog/dodge-s-fu...-fiat-chrysler

Z Fury

iTrader: (1)

I had heard something along these lines not too long ago. It had to do with a coming redesign on the Grand Cherokee (2016, possibly). They said the Grand Cherokee would be redesigned, but the Durango would just disappear. While it makes sense to an extent, I still think they should keep Dodge as a "budget-minded" lineup, like it is now, with Chrysler being the "luxury" version of those vehicles. Time will tell, I guess...

TriShield

Dodge is the same as Ford and Chevy (or Toyota and Honda), mainstream.

Without Dodge I don't know what the majority of Chrysler's unit volume is going to be. It won't be the Chrysler brand on it's own and it certainly won't be Fiat or Alfa (which is what I think they are thinking, separate trucks and muscle/performance, kill Dodge and make room for mainstream Fiats and eventually Alfa).

Chrysler as a brand has always been like Buick, Olds, Mercury, Lincoln and Cadillac, the occasional dabbling in low-end cars notwithstanding. Twins between Dodge and Chrysler is nowhere near as bad as quadruplets (or higher) between all of GM's brands.

Chrysler is making money now but I think the branding mess they are making is a recipe for disaster in the future.

Wnts2Go10O

iTrader: (12)

so basically, the italians bought chrysler to close it all down to bring their horribly unreliable good looking **** (alfa) here? i dont like mopar but wow, **** those ********.

justin455

Agreed. The best scenario I can come up with is broadening Chrysler's lineup to cover the mass of sales, as well as bring more Fiat and Alfa cars over (one cutesy micro car isn't gonna cut it here), keep the Ram brand, and maybe use the Dodge nameplate for buzz cars and niche cars to be sold at Chrysler/Fiat/Ram dealerships. Although that does make things confusing since they moved the Viper away from Dodge, now being an SRT vehicle.

It seems to make more sense to keep Dodge and downsize Chrysler a bit. Dodge is just too big of a name to axe completely.

TriShield

It was confirmed today that the Caravan will not go on to the next generation. So every Dodge vehicle right is not being continued past the current generation or is being rebranded.

It'llrun

Chrysler sounds better and has always been associated with more money than Dodge, so I get it... kinda. On the Caravan, that makes sense altogether, except from the marketing standpoint, as it is the most popular mini-van ever(or it seems that way, at least). The Town & Country is so much nicer... Not really. T & C and rand Caravan are almost 100% identical. I'm not even sure Chrysler is still using that name for their mini, but what other?? Maybe they'll call it the Chrysler Caravan...

jmurray87

iTrader: (1)

So guess this means no more Challenger? Or will SRT take over that car? Those things are picking up in sales and are great cars would hate to see them go.

TriShield

Next gen. is rumored to be either (or both) a Chrysler or SRT Barracuda, like the Viper.

I can imagine Dodge fans are responding to these rumors about as well as Pontiac fans were several years ago.

gocartone

iTrader: (4)

I still don't think the SRT and Ram brands were a good idea, unless there is some kind of loophole that they are working.

Rich-L79

Pontiac, Oldsmobile, Plymouth, Saturn, Saab........Dodge.

Japanese automakers have expanded their brands, Lexus, Scion, Infinity, Acura, etc. while the American nameplates list shrinks.

DrEvyl

iTrader: (5)

Saab is not an American nameplate.

But a lot of this has to do with market share. When most of these companies started, there weren't a lot of foreign-made cars available in the US. Since the '70s that number has increased quite radically... You also had a period where a good chunk of the American market was pretty crappy quality wise.. so it turned a lot of people off on American cars.. American companies can't afford to have multiple nameplates making the same exact car with trim differences any more.

It'llrun

Suzuki seems to be disappearing and Isuzu hasn't offered a car in America in a long time that I can remember. Those pickup and suv models were basically just GM's with different badges for years anyway. Those that weren't failed sooner.

Tariffs are also a problem for American names, as we don't seem to tax foreign manufacturers nearly as much as we're taxed in their land. There are many reasons for change, most of which are good, some not.

TriShield

100% agree with this. The trucks and Viper are still Dodges to most of the public and are still sold through Dodge stores.

Bob@BruteSpeed

iTrader: (16)

I agree. Bob

RevGTO

iTrader: (12)

I don't understand their thinking. Dodge has a lot of brand equity and a performance image that just won't equate with the Chrysler brand. It's like thinking that Buick can replace Pontiac - they're two different animals.

99FRC

iTrader: (5)

This is what happens when you allow Euro-trash to buy American companies. They don't know anything about our culture and our markets and base all of their decisions on what they read in the media.

It'llrun

Maybe they plan to phase out performance vehicles altogether? That would suck.

gocartone

iTrader: (4)

Why would you say that when they just formed the SRT as it's own brand not long ago?

It'llrun

Because if you can't compete well enough in sales, it really doesn't matter how old your business label is, so the age simply never entered my consideration.