Dodge Nitro and Jeep Liberty to merge into one vehicle

[nadepalma]

This story coincides with an article posted earlier today, Chrysler Plans for the Future

SOURCE: AutoBlog

Dodge Nitro and Jeep Liberty to merge into one vehicle

News out of Toledo is that Chrysler plans to drop either the Jeep Liberty or the Dodge Nitro within four years and merge the two vehicles into one. These two 'utes are built on the same exact platform, use basically the same engines and are built in the same Toledo plant. There is no good reason for both of them to exist, which makes us wonder why they ever did in the first place and why it will take three years to correct. Regardless, considering that Jeep will always be the off-road brand, it would make most sense to keep the Liberty name going. Losing the Nitro, meanwhile, might actually help Dodge improve its image as a volume performance brand.

MORE HERE

Source: Motor Authority

Update: Chrysler confirms it will cut SUV from its lineup

With Project Genesis already underway at Chrysler the fat is truly being trimmed in order to turn things around for the ailing car maker. The latest step is an elimination of all ‘twin’ models - cars that look essentially the same, based on the same platform, that target the same buyers, but sold under different brands. Now a company spokesman has confirmed that either the Dodge Nitro or Jeep Liberty will be cut as part of the program.

Once one of the two twin SUVs is cut, the other will carry on as-is, however. The cut will happen by 2012, and is in fact part of a larger plan to reduce the duplication in the Chrysler range. “As we move toward 2012, we won’t have this dual badging of products and duplicating products,” said North American sales Chief Steve Landry, according to the Detroit Free Press. Previous announcements of the intent to reduce ‘twin’ models had been second-hand and lacked specific time frames. With the Nitro/Liberty pairing now having a definite end date, it raises the question of when the remainder of the cuts will be made.

Other prime examples of the failed ‘twin’ scheme include the Dodge Avenger/Chrysler Sebring pair and the Chrysler Aspen/Dodge Durango. It’s not likely that Chrysler will step into the current product line to make cuts mid-cycle, but will instead change its development plans to eliminate such overlap.

According to Landry, “What we’ll do in our business model is not build similar vehicles on the same platform that kind of look and act like they have the same DNA.” Which half of each twin pairing will get the eventual axe isn’t yet known, but Frank Klegon, executive vice president for product development, hinted that the Durango would live on, saying, “The Durango is a great name.”

MORE HERE

[SpaceCowboy]

Autoblog asks why they ever built the two seperate vehicles in the first place, which is rather ridulous seeing as it's what everyone wanted at the time. It's incredible how a recent hike in fuel prices sends people into a tailspin. 'Why does X manufacturer build and SUV, what does Y manufactuer hope to achieve with their SUV line-up, When will Z maunfacturer debut their bloated SUV market entrant?'

Obviously though to makes sense to rationalise some market segment overlaps, but this is hardly groundbreaking news. Every manufactuer is attempting to do it at the moment.

[chevydlrmn]

Nitro should never have existed. Leave the rugged SUV thing to Jeep. More people would consider a Jeep that wouldn't consider a Dodge.

[87aero]

Originally Posted by SpaceCowboy

Autoblog asks why they ever built the two seperate vehicles in the first place, which is rather ridulous seeing as it's what everyone wanted at the time. It's incredible how a recent hike in fuel prices sends people into a tailspin. 'Why does X manufacturer build and SUV, what does Y manufactuer hope to achieve with their SUV line-up, When will Z maunfacturer debut their bloated SUV market entrant?'

Obviously though to makes sense to rationalise some market segment overlaps, but this is hardly groundbreaking news. Every manufactuer is attempting to do it at the moment.

Ya, it made sense then, and to me the Nitro/Liberty isn't a bad idea. They look different, one is off-road capable, one is a street machine. Two different machines with different buyers. Using the same platform/engine keeps the cost down. There other places they need to cut vehicles, like the Caliber/Patriot/Compass. The Jeep compass is the one that I wonder why "they ever did it in the first place"

[rcracedriver]

so does this mean that chrysler will basically combine all dealerships in the future as well?

[nadepalma]

Originally Posted by SpaceCowboy

Autoblog asks why they ever built the two seperate vehicles in the first place, which is rather ridulous seeing as it's what everyone wanted at the time. It's incredible how a recent hike in fuel prices sends people into a tailspin. 'Why does X manufacturer build and SUV, what does Y manufactuer hope to achieve with their SUV line-up, When will Z maunfacturer debut their bloated SUV market entrant?'

Obviously though to makes sense to rationalise some market segment overlaps, but this is hardly groundbreaking news. Every manufactuer is attempting to do it at the moment.

I think the bigger story isn't that an SUV is getting cut - it's that after years and years of product overlap and mismanagement, Chrysler is taking the proactive approach to actually kill overlapping models as it consolidates its brands into one sales channel.

That means that the folks at Cerberus are finally doing what Chrysler - and FoMoCo and GM - haven't been able to do for years.

Everyone says that Chrysler is a basketcase - but perhaps others can learn a think or two from Chrysler on elminating overlap and setting up a brand strategy that works.

[nadepalma]

Originally Posted by rcracedriver

so does this mean that chrysler will basically combine all dealerships in the future as well?

Yes. Chrysler is moving to a single sales channel strategy. Chrylser has taken the necessary steps to curtail each brand's lineup so that the only way for dealerships to have a "complete brand" is to carry all three brands.

According to the thread Chrysler Plans for the Future, Jim Press said "Jeep will remain an iconic off-roader, with no soft-roaders spoiling the brand; Dodge will be the performance brand, but will also be a volume play; and Chrysler focuses on luxury, competing with brands like Acura"

That pretty much means that Chrysler will probably be killing the Jeep Patriot and Jeep Compass in the near future - and that the product may be moved to Dodge.

[BrickTamland]

Good idea. They really only need the Jeep. Instead of two mediocre vehicles sullying their image, there will only be one.

[tripowergto]

That all said, I bet we watch their marketshare continue to decline. Less is more, right?

[skylark68]

If the Liberty/Nitro don't make any sense, I'd hate to guess what Autoblog thinks of the Yukon/Tahoe/Escalade, Armada/QX56, Expedition/Navigator, etc... Sheesh.

[nadepalma]

Originally Posted by tripowergto

That all said, I bet we watch their marketshare continue to decline. Less is more, right?

Marketshare is one thing; profitability is another thing altogether - and many would argue it is MORE important than market share.

I bet that corporate managers would love to say that they control huge swaths of any market - but if they dont make money (or hamper their ability to make MORE money) then it doens't make a difference if your market share is 10% or 90%.

That's one thing I've tried to argue in the "Rumblings and Rants" post on the front page.

Regardless in Chryslers case, even if they lose market share and reduce the size of the company - but make a decent profit - that's all that matters. I for one would rather have the "right sized company" and make money than continue to lose money as you deal with excess capacity, overlapping models, and a dated retail strategy.

But that's just me...

[jkr2106]

First off that says within FOUR years!?! That's a really long time to decide to cut a car. If it needs to be cut, I'd applaud them for cutting it now.

Originally Posted by skylark68

If the Liberty/Nitro don't make any sense, I'd hate to guess what Autoblog thinks of the Yukon/Tahoe/Escalade, Armada/QX56, Expedition/Navigator, etc... Sheesh.

Second, that's not a fair comparison. Those are mainstream/luxury pairs (granted one of the 900s is unnecessary). The Liberty and Nitro, however, compete at the same pricepoint. Thus, one is redundent. IMO, the Nitro deserves the boot.

[nadepalma]

Originally Posted by skylark68

If the Liberty/Nitro don't make any sense, I'd hate to guess what Autoblog thinks of the Yukon/Tahoe/Escalade, Armada/QX56, Expedition/Navigator, etc... Sheesh.

Don't ask - they'd repeat what many on GMI have stated already -- it isn't really needed and just reproducing the wheel too many times over. GM could make use of their money MUCH more effectively than they do.

However, Nissan and FoMoCo can get away with some of this b/c they each have less brands to support and have separate and distinct sales channels. This isn't always true of GM. Yeah, they are supposed to have 4 sales channels, but often they bleed into one another.

[nadepalma]

Originally Posted by jkr2106

First off that says within FOUR years!?! That's a really long time to decide to cut a car. If it needs to be cut, I'd applaud them for cutting it now.

I would think so too - except that product plans cannot always be cancelled overnight. Labor agreements, supplier contracts and other issues are no doubt part of the reason that they have to continue to produce the Nitro for a few more years.

However, perhaps they are searching for a product to proudce that could keep Nitro customers at Dodge. Just as most mid-sized SUVs are moving to unibody/crossover configurations, maybe Dodge wants a piece of the action and hopes to replace the Nitro with something akin to the Equinox or Escape?

Yeah, they have the Journey - but it really isn't close to the Equinox or Escape in size or segment. Perhaps they are hoping to have something else up and running before they pull the plug.

And doing so wouldn't violate Chrysler's new Edict - Jeep would continue with off-roads and Dodge would offer a different product (in this case a unibody/FWD-AWD product).

But who knows....

[pic18]

I can't seem to start a new thread, so Off Topic, check this out:

http://link.brightcove.com/services/...tid=1759811968

It is TRANSFORMERS 2 with the VOLT UNMASKED!