Photo: Chrysler
Let’s be frank here for a moment. Chrysler is pretty much dead as a brand, a shadow of its former self. Currently selling more people carriers than 300-badged sedans, the crown jewel of what used to be the Chrysler Group may be on the chopping block, according to industry experts and analysts.
Carlos Tavares, who is the head honcho of French automaker Groupe PSA and the big kahuna of the Stellantis merger consisting of Groupe PSA and Fiat Chrysler, is known for taking drastic measures in the name of profitability. Under his leadership, the Associated Press reports that “Chrysler might get the axe as could slow-selling cars, SUVs, or trucks.”
Karl Brauer, the executive analyst for the iSeeCars.com, argues that “you can’t be cost efficient if you keep the entire scale of both companies. We’ve seen this show before, and we’re going to see it again where they economize these platforms across continents.” When you think about it, the man does make sense. After all, group synergies through platform sharing made Volkswagen AG one of the biggest players in the automotive industry.
Bear in mind, however, that nothing is currently set in stone. Word has it Tavares will consolidate European operations first because Fiat overlaps with Citroën and Peugeot across many segments. As for U.S. operations, most of them are “hugely profitable and likely will be left untouched for a while.”
The biggest challenge for FCA and PSA as one will be the Asian continent, specifically China. Both automakers are losing ground in the Middle Kingdom, which is responsible for 45 percent of new car sales worldwide. Squeezed by local brands, the French and Italo-American contenders will have to adapt their business model in accordance with the market’s trends.
Turning our attention back to Chrysler, take a guess how many vehicles it sold in the third quarter of 2020 in the United States. The grand total is 31,870 vehicles, and most of them come in the guise of the Pacifica minivan. The 300 luxury sedan, by comparison, has been outsold by the Dodge Charger by a huge margin, namely 3,170 compared to 23,547 units.
Karl Brauer, the executive analyst for the iSeeCars.com, argues that “you can’t be cost efficient if you keep the entire scale of both companies. We’ve seen this show before, and we’re going to see it again where they economize these platforms across continents.” When you think about it, the man does make sense. After all, group synergies through platform sharing made Volkswagen AG one of the biggest players in the automotive industry.
Bear in mind, however, that nothing is currently set in stone. Word has it Tavares will consolidate European operations first because Fiat overlaps with Citroën and Peugeot across many segments. As for U.S. operations, most of them are “hugely profitable and likely will be left untouched for a while.”
The biggest challenge for FCA and PSA as one will be the Asian continent, specifically China. Both automakers are losing ground in the Middle Kingdom, which is responsible for 45 percent of new car sales worldwide. Squeezed by local brands, the French and Italo-American contenders will have to adapt their business model in accordance with the market’s trends.
Turning our attention back to Chrysler, take a guess how many vehicles it sold in the third quarter of 2020 in the United States. The grand total is 31,870 vehicles, and most of them come in the guise of the Pacifica minivan. The 300 luxury sedan, by comparison, has been outsold by the Dodge Charger by a huge margin, namely 3,170 compared to 23,547 units.
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