Jeep will be only Chrysler brand sold outside N.A., sources say

[nadepalma]

Jeep will be only Chrysler brand sold outside N.A., sources say
Automotive News | November 2, 2009 - 4:00 pm EST

MILAN/DETROIT (Reuters) -- Fiat S.p.A.'s plans for Chrysler will scrap the U.S. automaker's plans to peddle its brands outside North America with the exception of Jeep, people with direct knowledge of the plan said.

Fiat CEO Sergio Marchionne is set to brief analysts and reporters on Wednesday on plans that the Italian automaker has been developing for Chrysler after taking management control as part of a restructuring arranged and funded by the Obama administration.

A Chrysler spokeswoman declined to comment on the pending product announcements. "It will be comprehensive," she said of the briefing scheduled to include Marchionne and Chrysler Chairman Bob Kidder.

The centerpiece of the five-hour presentation by Fiat and Chrysler executives will focus on plans to bring new fuel-efficient models to the U.S. market using Fiat-developed engine technology, according to the sources, who asked not to be named ahead of the formal announcement.

That will include plans to introduce Fiat's fuel-saving MultiAir engine technology to Chrysler vehicles, the sources said.

Fiat was given a 20 percent stake in Chrysler by the U.S. Treasury's auto task force in exchange for bringing more advanced vehicle technology to the U.S. automaker as part of an effort to allow it to meet tough new U.S. fuel economy standards.

Other elements of the Fiat plans for Chrysler will reflect a recognition that the automaker cannot be made viable with only minor changes to its past strategy for its three brands, Chrysler, Jeep and Dodge, the sources said.

As part of the wholesale shake-up under Fiat, Jeep will remain an international brand because of the strong name recognition it commands, the people said.

Fiat plans to develop the Jeep brand and beef up marketing for its SUVs in emerging markets such as Brazil, one of the sources said.

Chrysler's pickup truck line-up has been rebadged as Ram, leaving its Dodge brand as a niche car offering.

One of the elements of this week's product plans will be discussion of bringing an electric car to the Dodge brand, one of those with knowledge of the plans said.

The Chrysler brand will be integrated into Fiat's own Lancia brand with shared vehicle platforms. As part of that effort, an attempt to build Chrysler up as a separate brand outside North America will be abandoned, the sources said.

That would mark a reversal of strategy for Chrysler that began under its ownership by Daimler AG. In recent years, Chrysler has drawn about 90 percent of its sales from North America, making it more vulnerable than its larger rivals to the steep, four-year decline in the U.S. auto market.

Fiat is not expected to announce plans to spare Chrysler plants already scheduled to close, the sources said.

That would represent a setback for the UAW, which owns 55 percent of Chrysler through its health- care trust fund. The UAW has been lobbying Fiat to keep a Chrysler assembly plant near Detroit and an engine plant in Wisconsin running.

Marchionne has repeatedly said the industry needs to reduce capacity to cope with lower demand.

Other elements of Fiat's plans for Chrysler point to the ways that the Italian automaker has found to reduce shared costs, the sources said.

In one of those cost-saving measures, Fiat will take over development of the rear-wheel-drive platform that would have provided the underpinnings for a new Chrysler 300C, the sources said.

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[nadepalma]

Certainly seems like a reversal from what we've seen in the past. Its kind of surprising.

From what I've read in other threads, while Dodge kind of foundered, the Chrysler brand did relatively well in Europe and other markets.

Knowing that they will not be sold outside North America (at least for now?!?), I wonder if that means that Lancia will now be taking over the Chrysler brand network in Europe and other areas (China, Russia, India) since Fiat will restrict them to North America? Will Lancia finally get the attention they deserve and be sold in more markets at the expense of Chrysler?

I also wonder what direction (or preferences) the LY/LX platform will go in now that Fiat is taking over main development of the platform?

Interesting questions to ponder...and this does make some sense...but don't know if I like the idea of Chrysler brands being restricted to only North America in the long term...

[Stéphane Dumas]

also, the Chrysler and Dodge brands got their share of fans in Australia, Argentina and Brazil, maybe they should reconsider some parts of its strategy.

[Exploder]

No. Freaking. Way.

I was supportive of the whole deal precisely because Chrysler/Dodge are the only true American CAR brands that have the potential to truly go global. (Ford still might as well be 3 different companies, Chevy is even lower than Kia outside of NA) Now I get this.

So only Fiat/Alfa/etc can be expanded but not Chrysler/Dodge?

This is bad, bad news, no doubt about it.

Everything turns to crap in the end...

Let me guess what's next, the next 300 will be riding on an overweight FWD platform...

[commodore88]

Seriously?? This would hurt them, rather than do good. Chrysler seems popular in Europe, last year when I was over there, I saw a ton of PT Cruiser and a fare share of 300's. And they have potential in other markets.

[crooner214]

It seems to me that this makes good business sense. The PT is being killed, and the 300 redesigned under Fiat's RWD program. What else does Chrysler sell globally?

Besides, just because it is sold as a Lancia, doesn't mean they can't give it a Chrysler badge.

[1931Chevy]

So Marchionee wants Jeep to Battle with Fords Troller in brazil interesting

[Rocket 88]

It all makes sense... except I still think something is up with the Dodge/Ram split.

What they are saying about Dodge sounds quite similar to what GM said of Pontiac. It will be a niche brand. Apparently dead is a niche.

[wescoent]

This actually makes sense.

Unify the Dodge and Alfa lineup.

Unify the Chrysler and Lancia lineup.

Differentiate by exterior styling.

Sounds good to me?

[sigma]

Originally Posted by wescoent

This actually makes sense.

Unify the Dodge and Alfa lineup.

Unify the Chrysler and Lancia lineup.

Differentiate by exterior styling.

Sounds good to me?

I still don't get Dodge as Alpha instead of Chrysler, but yes... that does make some basic iota of sense.

[stevecmh]

wow.. why not just make it Fiat.. Jeep and Ram trucks..... thats about all its going to be...

[brnwrng]

Originally Posted by stevecmh

wow.. why not just make it Fiat.. Jeep and Ram trucks..... thats about all its going to be...

I agree..! :P

[BlekherBob]

Some of you guys are right about this. Just as I thought, Fiat is decreasing Chrysler’s market to make room for itself, and is basically going to sell us Fiat cars and engines with Chrysler bodies and badges. Chrysler has a large following in South America, as someone pointed out. It is a shame to see it *******ized like this.

[OLDSCHOOLGMFAN]

Folks are always whining that American cars are "too big and thirsty to sell internationally blah, blah" so I don't see the problem with this idea. I wish GM and Ford too would cater more to the North American market.

[mbukukanyau]

American Chrysler and Dodge vehicles better look the part, otherwise, their American market will dissappear if they start looking like some foreign cars.

A Charger cannot be some FWD twinspark.