Chrysler May Sell Subcompact In U.S.

[Perian]

Link: wsj.com

Chrysler plans to show a concept for a compact car called the Dodge Champ later this month at the Geneva Auto Show, people familiar with the matter said.

DETROIT -- DaimlerChrysler U.S. Chrysler Group is considering bringing a sub-compact car to the U.S., according to the company's U.S. sales and marketing chief.

Chrysler Vice President Joe Eberhardt said Wednesday the auto maker is looking to possibly tap the strong Canadian and Mexican small-car field with a subcompact, or B-segment, offering. The car would likely be built through a partnership with an auto maker outside the DaimlerChrysler organization and Chrysler would look at selling the vehicle in the growing U.S. B-car segment, he said.

Most of the top car companies participating in the U.S. market, including General Motors Corp. and Toyota Motor Co., sell B cars in the U.S. Most auto makers develop the vehicles for other markets where such cars are in higher demand and offer profitable returns, and then adapt them to be sold in the U.S.

The segment has seen growth in recent years. GM, for instance, expects subcompact vehicle sales to grow 5% to 10% in 2006.

Eberhardt said the auto maker doesn't see a reason to specifically develop a subcompact for the U.S. He said the "segment in the U.S. is not going to be important, at least anytime soon." The executive said Chrysler would need a partner in order to make a profitable B-segment business case.

[Perian]

Looks like the just announced Ford/Mazda model and the Chevy Aveo will be getting a little competition...

[Aerodynamix]

Interesting. It'll likely get the same diesel option that the Caliber has which will make for a real fuel-sipper.

[CarShark]

Originally Posted by Perian

Eberhardt said the auto maker doesn't see a reason to specifically develop a subcompact for the U.S. He said the "segment in the U.S. is not going to be important, at least anytime soon." The executive said Chrysler would need a partner in order to make a profitable B-segment business case.

What about Europe? They're just getting started there, so why not have an entry in a segment that you know is important there and might be important here?

[Bravada]

OK, given the latest DCX moves I guess it is most likely that we are about to see the return of the Dodge Colt - a Chrysler-style blatant rebadge of the current, not sold in the US/Canada, Mitsubishi Colt. Mitsu makes those in Japan as well as in the Netherlands at NedCar in partnership with DCX, who builds the Smart Forfour off the same platform.

The engines here are actually more DCX's than Mitsu's, as the project was creaqted in the good old days when Mitsu still was an affiliate of DCX. You might know that the Plymouth Champ was the Colt.

Why in the world are they to shuffle the names and use the stupid Champ moniker instead of the nice-sounding Dodge Colt is beyond me - perhaps the Mitsu's also on its way to US?

At first I thought that the second possibility, a Smart Forfour rebadge, is less likely, but now, given Dieter's inclinations to kill Smart, it might be that this model would be moved to Dodge after the ForTwo is killed/sold to Piaggio. I only just can't see how in the world would they graft a Dodge nose on it? Maybe just recreate Plymouth, replace the Smart badge with the boat and sell at Dodge & Chrysler showrooms? Or, if Smart was to stay, why not just sell Smarts @ Dodge in the US?

[Hudson]

I always liked the Champ name. I was mad when Plymouth dropped it in favor of Colt. Should we start listing all Chrysler heritage names so that we're prepared when the next Dodge model is called the Volare or Adventurer or Valiant?