Chrysler will be American on outside, lots of 'Fiat' on inside

[articsteve]

Automotive News
November 4, 2009 - 3:21 pm ET

DETROIT -- Chrysler Group's new vehicles will be American on the outside with a lot of Fiat on the inside.

In a wide-ranging presentation today, Chrysler executives unveiled a two-pronged strategy for the next five years. The U.S. automaker will rework many current vehicles next year while working on new vehicles with Fiat powertrains and platforms for the following few years.

Chrysler's dismal U.S. sales in October -- down 30 percent, for a 22nd straight month of decline -- underscored the urgency to improve the group's vehicles.

"There is no 'business as usual' at Chrysler," said Chairman Bob Kidder. "There is an incredible commitment and energy for change."

Here are some product highlights unveiled so far in a scheduled seven-hour presentation that began this morning:

In 2012-2013, the Dodge car brand plans:

• A new vehicle for North America in the C segment, which encompasses cars such as the Ford Focus. The car would be based on a Fiat platform.

• A hatchback smaller than the C vehicle, imported from a Fiat factory.

• A new sedan on a Fiat platform to replace the Avenger sedan.
 
New Dodge crossover

In the meantime, Dodge plans a full-sized seven-passenger crossover for the fourth quarter of 2010. The brand also plans updates next year for the Avenger, Journey crossover, Caravan minivan and Charger muscle car.

In addition, production of the Dodge Viper will end next summer, and an unnamed sports car will be added in 2012.

The Dodge brand will pursue a new lifestyle mission, de-emphasizing its traditional pitch to performance-minded males.

This leaves the new Ram truck brand to build a brawny image for pickup and work-vehicle enthusiasts. The Ram might even produce a heavy-duty 18-wheeler, said Ram brand CEO Fred Diaz.

But the Chrysler Group's larger challenge in the coming years is to meet the federal fuel economy standard of 35.5 mpg for the 2016 model year. That's where Fiat engines and powertrains come in.

Chrysler will use a Fiat diesel engine along with a 1.4-liter inline four-cylinder. The inline-four will appear first in the U.S. version of the Fiat 500 in the fourth quarter of 2010.

Chrysler will align its engineering organization to Fiat Group, making the most of common platforms, systems and components between the two companies, said Scott Kunselman, senior vice president of Chrysler Group engineering.
 
Shared platforms

By 2014, Chrysler will share three platforms with Fiat, increasing Chrysler's average models per platform from about two in 2010 to three in 2014. During that period, average volume per platform will increase to 305,000 units from 125,000. In the process, four platforms will be consolidated, Kunselman said.

While Chrysler's task ahead is huge, CEO Sergio Marchionne tried to allay fears about the company's finances.

Chrysler has improved its cash position since Fiat S.p.A. took the company out of bankruptcy in June, said Marchionne, who also is CEO of Fiat.

"Some of you have been surmising we're burning through cash," he told the assembled analysts and reporters. "This is not true."

The company had $5.7 billion in cash on hand at the end of September, up from $4 billion when Fiat took over in June.
 

[rrocket]

Oh..and they have a new logo!!  LOL


But seriously...Why in the hell do they need a full size 7 passenger vehicle in their line-up?  WTF is wrong with these people??

[Roddy]

LOL Fiat better have a horseshoe up their ass

[articsteve]

Fiat dual-clutch transmissions coming to N.A., Chrysler powertrain boss says
Bradford Wernle
Automotive News
November 4, 2009 - 12:36 pm ET
UPDATED: 11/4/09 2:59 p.m. ET


DETROIT -- During the next five years, Chrysler Group's powertrain lineup will be transformed from one dominated by larger-displacement engines to one dominated by Fiat-derived four-cylinder engines, V-6s and, eventually, electric vehicles.

Chrysler also said today that it will add Fiat-designed dual-clutch transmissions in its North American products.

The company also will launch its new Pentastar V-6 engine on the 2011 Jeep Grand Cherokee in the second quarter next year, said Paolo Ferrero, Chrysler's powertrain chief.

The Pentastar will replace all Chrysler's V-6 engines, from 2.7-liter to 4.0-liter displacement.
 
The first dual-clutch transmission will appear on a new D-segment vehicle at the end of 2010. Also about that time, Chrysler will launch stop-start technology on the Jeep Wrangler diesel, an existing vehicle in Europe.

The combined Chrysler-Fiat companies will divide into centers of powertrain expertise. Fiat will produce small gasoline engines and diesels, while Chrysler will be the center of knowledge for V-6s and V-8s.

Chrysler was not clear on when, or whether, Fiat diesels will come into the North American lineup.

Chrysler's current engines gradually will give way to a new mix dominated by four-cylinder engines and the new V-6.

In 2010, Chrysler's legacy engines -- those in the stable before Fiat took control -- will account for 84 percent of Chrysler's engine mix. By 2014, the legacy engines will be down to 12 percent. 
 
In 2014, Fiat-derived engines will account for 42 percent of Chrysler's mix. The Pentastar V-6, developed before Fiat came on the scene, will account for 38 percent.

[/b]Chrysler also plans to:[/b]

• Introduce a 1.4-liter gasoline engine in the Fiat 500 in the fourth quarter of 2010.

• Launch a turbocharged version of the 1.4-liter four-cylinder in the fourth quarter of 2011.

• Apply Fiat technology to Chrysler's Pentastar V-6 -- including MultiAir, which Fiat says improves fuel economy 10 percent by using electrohydraulic valve controls to adjust the air and valve timing for each cylinder. Single and twin turbocharging also will be used.

• Apply Fiat fuel-saving technologies to engines it purchases from outside suppliers, such as the Cummins diesel.

• Continue development of hybrid electric vehicles, including the launch of the Dodge Ram 1500 hybrid electric truck, due out in 2010 as a 2011 model.
 

[rrocket]

IMO they need to get the FIat 500 over here ASAP.  Otherwise they are doomed!  With nothing remotely new coming from them until at least 2011, they are screwed unless that 500 gets here immediately. 

[articsteve]

I agree.  Or shut down the entire operation/network for 2 years and then reopen.

Clean slate as they say. 

[Honda Owner]

A Chrysler-Fiat. Scary!

[tpl]

I can see nothing forthcoming that would tempt me into a Chrysler dealer except  for a look at the 500.  If my household needed/wanted new cars in the current state of our economy then mrs tpl would probably just get a Mk II Fit and I'd get another VW.  Those two dealers form the brackets around Guelph's Golden Mile and we deal with both of them already.  By the time Chrysler/Fiat has regained a reputation for reliable and interesting cars I'll probably be too old to drive anyway.

To be fair to Marchionne I have seen no reason to buy a Chrysler product in my life so far so it is not his fault.

[MKII]

Automotive News Europe
November 5, 2009 13:17 CET
http://europe.autonews.com/apps/pbcs.dll/article?AID=/20091105/ANE02/911059998/-1&AssignSessionID=373346222134924

TURIN - The Chrysler badge will disappear from cars sold in Europe by 2011 leaving the U.S. carmaker with Jeep as its only nameplate in the region
 


Under Fiat S.p.A's restructuring plan for Chrysler Group, Chrysler and Dodge cars will be rebadged as Lancia or Fiat models to streamline capital expenditure and distribution costs.

Fiat and Chrysler CEO Sergio Marchionne's plan includes:

• Selling the Chrysler Voyager as a Lancia model to replace the Italian brand's Phedra minivan.

• Rebadging the next-generation Chrysler 300C as a successor to Lancia's flagship Thesis sedan.

• Selling Chrysler's next Sebring sedan and new mid-size crossover as Lancias.

• The Dodge Journey will be sold as a Fiat-branded replacement for the Ulysse large minivan.

• Fiat's Croma hatchback will be replaced by a Dodge-based mid-sized sedan and the Italian brand's Sedici crossover will replaced by the Dodge Nitro successor

"In North America, Lancia models will complement the Chrysler brand and in Europe the opposite will happen," said Olivier Francois, CEO of the Chrysler and Lancia brands.

Michael Manley, CEO of the Jeep brand and head of Chrysler Group international sales said Jeep will become Chrysler's Group's only global brand. Outside of North America, the Dodge and Ram brands will only have special or regional roles, Manley said.

In the first ten months of the year, half of Chrysler Group's sales outside North America were Jeep models."

Woozers a turnaround plan that ran over 8 hours and not a mention of North American Assembly Plants. I found that very strange.

 Workers' concern dodged

Marchionne also steered clear of a key question for Chrysler's workers: He did not say where it will build the new models now on the drawing board, including vehicles intended to make it competitive in the mid-sized and compact car segments where it now lags rivals.

"We know our shortcomings. We've been honest and frank," Marchionne told an audience of several hundred analysts, reporters, dealers and civic leaders. "Now we just need to go out and fix it."
http://europe.autonews.com/article/20091105/ANE02/911049959/1317

It is good to finally see something from this group, but IMO an over the top ambitious plan to say the least.
And nothing about Alfa Romeo

Apparently Fiat is #1 in Brazil, and Mexico assembly is set up to make the NAFTA free trade with Brazil, and low labour costs, my guess is that Mexico will be the assembly point for some of these new variants.

Back in the spring I remember reading that McGuinty made a trip to Turin Italy and was making a sales pitch to Fiat to bring new production facilities to Ontario. Did anything come of this?

[toolatecrew]

As sad as it sounds this plan (bringing in a bunch of new models designed by Fiat) sounds like it has a much higher chance of sucess than piling all your hopes and dreams into a low volume low profit gas electric car that won't even see the light of day until Nov 2010 at the earliest.

[toolatecrew]

I guess I spoke too soon. Apparently Chrysler subscribes to the GM forcasting model.
http://www.thetruthaboutcars.com/whats-wrong-with-this-picture-planning-sales-edition/

So Chrysler how do you forcast your sales and market %? Do you look at trends, planned vehicle launches ?

Well Jim what we do is determine what market share and volume we need to appear profitable, increase share price or get government funding. Then we we plot it out on a chart. Then we adjust the projections so that the curve looks like a nice smooth upward curve.

[PJungnitsch]

Yet another take, with some more details. There seems to be a fair bit of Chrysler going into Fiat, as well as other way around. Much more synergy possible between these two companies than there ever was with Chrysler/Mercedes:


Chrysler says that by 2014 half of its models will be based on Fiat Group platforms and many of its engines will use Fiat Multiair variable valve technology, including Chrysler’s new Pentastar V6 powerplant.

Fiat will become the leader in small petrol and diesel engines and Chrysler the leader for large engine, hybrids and electric cars.

In four years’ time, the combined Chrysler/Fiat Group should be producing a combined total of over five million vehicles per year, a number regarded by boss Sergio Marchionne as the minimum volume required for a single car maker to prosper.

Chrysler says it has already completely re-thought its quality processes in reaction to what it admitted were unacceptable standards over the last few years. The company is also reorganising its manufacturing systems and overhauling its factories.

By 2014, Chrysler Group is predicting that its US market share will have risen to 11 per cent from the six per cent low it suffered in 2009. The company says it will make an operating profit next year and break even in 2011. The money it borrowed from the US state as a result of its bankruptcy will be paid back by 2014, according to financial projections.

Dodge plans

The Dodge brand has been given a new logo and will be repositioned as being "more youthful and more refined", with a "more visceral driving experience" and much-improved quality.

The new models will be available in one of five ‘lifestyle packages’ including ‘uptown luxury’ and ‘cool extrovert’.

2010: Completely revamped versions of the Avenger and Journey crossover with much improved interiors, handling and refinement. The brand will also get a new Charger and big new Crossover.

2011: A new version of the Nitro is "under consideration".

2012: Dodge gets a new Golf-size saloon based on Fiat platform. A new Viper based on Fiat group tech is under consideration.

2013: A Fiat-based Avenger replacement and Punto-based hatchback.

2014: An all-new big MPV.

Jeep plans

Having peaked at 609,000, Jeeps global sales crashed to just 497,000 in 2008. The company’s aim is to boost that over 800,000 by 2014. Chrysler says Jeep was hit by a doubling of competitors in the SUV segment as well as the arrival of ‘crossovers’.

In the future, most Jeep models will be more tuned to on-road use and will come in two-wheel-drive and four-wheel-drive versions, although a new platform architecture will allow the company to build cars that can be optimized for road and ‘Trail Rated’ off-road.

The Wrangler will remain the core ‘no compromise’ off-road model. A concept at the Detroit show next January will point the way for the brand’s future styling.

2010: The all-new Grand Cherokee arrives. Major overhauls for the Patriot, Compass, Wrangler (including a new interior) and a facelift for the Liberty.

2011: Another Wrangler revamp for Jeep’s 70th anniversary. Production of the Commander will be "internationally relocated"; China or India are possible new sites.

2013: New Fiat-based Punto-size Jeep and new Patriot, Liberty and Compass based on a Fiat platform.

Chrysler plans

Chrysler is now overseen seen by Frenchman Olivier Francois, who also runs Lancia. The rumours about the effective merging of the two makers around a very similar brand image turned out to be on the mark.

Francois suggested that the Chrysler 300C and Lancia Thesis are very similar propositions and says that in future both brands will get models that reflect "timeless elegance" and recapture "style and cachet". Chrysler will be "unique, upscale and consistent".

The image overhaul will run from the new logo and brochures to the brand appearing at "fashion shows rather than auto shows". The overall approach is strongly reminiscent of Rover’s (unsuccessful) 1999 relaunch with the 75 saloon.

After the press conference Chrysler bosses confirmed to reporters from Automotive News that the Chrysler badge will disappear from Europe by 2011. The new 300C and new Voyager MPV will both wear Lancia badges in Europe. The new Journey crossover and new Sebring saloon will also become Lancias in Europe.

2010: New 300C saloon and "down to the bare bones of the architecture" revamps of the Sebring saloon and Voyager MPV which promise massively improved perceived quality. The PT Cruiser will also die.

2012: New Fiat-based compact saloon.

2013: New Fiat-based Punto-size car. New Fiat-based Sebring and mid-size Crossover.

2014: New Voyager.

Fiat in North America

Fiat’s reputation in North America is still very poor, mainly due to the reliability problems with otherwise popular cars such as the 124 Spider. The Fiat brand pulled out in 1983. However, the company will dip its toe back in the water next year. The Fiats will be sold in ‘metro area’ dealers.

2010: US version of the Fiat 500.

2011: Fiat 500 cabrio.

2012: Abarth 500.

Some Fiats will travel from the US to Europe. Fiat will import a version of the Dodge Journey as a replacement for the Fiat Ulysee MPV, the Vectra-sized Croma hatch will be replaced by a version of the mid-size Dodge saloon and the Suzuki SX-4-based Fiat Sedici should be replaced by the next-generation Dodge Nitro.

Chrysler and Fiat did not reveal any plans to relaunch Alfa Romeo in the US market, even though Fiat has pondered the move.

Chrysler’s RAM pick-up and truck brand is also set for an aggressive relaunch, with the aim of boosting sales from 285,000 to 415,000 by 2014. The RAM brand will also get to small commercial Fiat-based vans.

http://www.autocar.co.uk/News/NewsArticle/AllCars/244658/

[Erik]

Interesting stuff. If they can stay alive until the new models start hitting the showrooms, we could end up with some really great cars.