Chrysler to sell new Fiat designs under Dodge nameplate
Filed under: Energy, Company News, Technology, Economy
Chrysler Group LLC plans to introduce three new Dodge brand cars, and possibly a midsized truck as part of a larger plan to rejuvenate the brand and sell more vehicles. The beleaguered automaker also said its finances are improving, reporting it broke even in September and had $5.7 billion in cash on hand. That's up from $4 billion in June, the month in which the company exited bankruptcy protection following a deal with Fiat (FIATY) which gave the Italian automaker a controlling stake in Chrysler.The three new cars -- a subcompact, a compact sedan and a midsized sedan -- are Fiat designs, the New York Times reported, citing advance copies of presentations given to reporters. The presentations are part of a daylong meeting Chrysler is holding Wednesday at its headquarters in Auburn Hills, Mich., to lay out its five-year plan to reorganize and once again become profitable.
The plan calls for the new car models to be introduced in 2012 and 2013. Chrysler previously announced it would phase out Dodge's current midsized sedan, the slow-selling Avenger. Sales of the Avenger, as with other Chrysler models, benefited from the U.S. government's "cash for clunkers" program, but were still down 45 percent in the year ending October. Sales of the Avenger's sister car, the Chrysler Sebring, fared even worse, having dropped 69 percent during the same period.
The midsized truck being considered would debut in 2011 and replace the Dodge Dakota. No details were provided about the design, but the model would likely be sold under the Dodge Ram brand, unlike the Dakota, and provide better fuel efficiency. Though smaller than a full-sized pickup, the Dakota gets about the same gas mileage.
Chrysler's new plan also stipulates how the company intends to improve sales under the leadership of Chief Executive Sergio Marchionne, who also serves as Fiat's CEO. "All expectations both internally and externally will be met," Marchionne told reporters.
"The success of Chrysler and the auto industry is important to U.S. economic revival," Chrysler Chairman C. Robert Kidder said in comments to reporters ahead of the meeting, according to The New York Times. "The problems that led to the bankruptcy of the pre-petition Chrysler can be solved."
The U.S. government owns 10 percent of Chrysler, which has received $12.5 billion since December to prevent its collapse. The automaker and its finance arm are two of the companies that received money under the federal government's Troubled Asset Relief Program.
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Reader Comments (Page 1 of 1)
11-04-2009 @ 5:52PM
kevin said...
Wow, this is the most exciting thing to happen to Chrysler since mininvan.
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11-04-2009 @ 5:54PM
B. Clark said...
I had a Fiat -500 I believe it was in the 50s. It was a tin can but dependable as can be. I sold it to a friend and he loved it. Drove it for years. Four banger on the rear wheel drive and it would go like crazee through deep snow as I commuted to the NY airports.
Yesterday I saw some shots of the ones destined for the US and the 500 looked just the same.
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11-04-2009 @ 6:09PM
Walter Kunze said...
If you drop the minivan...count me out. I have had 2 minivans and now have a 3rd (Kia). I will not be without a minivan.
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11-04-2009 @ 9:50PM
Dave said...
Chrysler's problem was, they duplicated every mfg. facility in the US down in Mexico (with US capital), then had no way to pay for it. Too much capacity; poor planning or the master plan? I know, lets go bankrupt in the US, but exclude the Mexican operations (international operations) out of the court proceedings. Gee, where did the money go?
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11-05-2009 @ 10:12AM
John George said...
Gee, I guess this means that everyone who buys the knew Fiat will also have to buy a salt & pepper tweed sports coat and have leather patches sewn on at the elbows just like we did in the 1960s! Why? I don't know, but that's the rule; if you buy a Fiat you have to drive around in it wearing a salt & pepper tweed sports coat!
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11-05-2009 @ 7:36AM
kdnorcutt said...
Don't forget the hat that goes with the outfit!!
11-05-2009 @ 7:35AM
timothy said...
I seem to remember the tweed sport coat was also a requirement for the British MG 2 seater ragtop coupe......because the heater was almost useless
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11-05-2009 @ 7:43AM
kdnorcutt said...
I was never a dodge/Chrysler lover. i have always owned GM until 2005 when I was in the market for a heavy duty dual rear wheel pick up. I looked at GM and did not like their aluminum duramax diesel engine, I also did not care for the power stroke ford puts out too noisy not to mention the smell. I ended up buying a Dodge ram 3500 quad cab dual rear wheel with the cummins diesel. Best move I ever made It is a great truck and have never had a lick of trouble. It is used mainly for towing and long trips.
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11-05-2009 @ 7:51AM
Russ Klass said...
Obama's dismantleing of America continues!
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11-06-2009 @ 3:27PM
MisterBH said...
It's ironic that the company widely regarded as building the worst cars in Europe now owns the company that has built the worst cars in North America for many years.
I currently own a Chrysler Sebring and would never, EVER buy something from Chrysler again. At 25,000 miles, it is literally falling apart in my garage, and needs to go back in to have more things repaired.
Obama should have let Chrysler die and then just paid to give it a nice funeral. I actually feel badly for Fiat.....
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