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Disclosure: im an automotive mechanic for a chain of midwest shops. Chrysler has been the "frat boy on probation" for nearly 40 years now. Renault was wise to
by nimbius 7y ago
Disclosure: im an automotive mechanic for a chain of midwest shops. Chrysler has been the "frat boy on probation" for nearly 40 years now. Renault was wise to reconsider what they would get.
wind back the clock to Daimler Chrysler and youll see there was nothing but mistrust from the start. German execs wanted an inroad into an american market segment that their luxury brands couldnt target at the time, and Chrysler wanted cash and technology. In the end, Daimler wound up with almost nothing in terms of IP or licensing, and Chrysler got the E class for its charger and challenger. Right down to the windows that roll down when you exit and enter by a few centimeters.
Fiat was at least pragmatic about its interaction and kept Chrysler at arms length. they got the GM fiat small platform developed almost entirely for them as they pumped cash into chrysler. The bitter irony here is that Chrysler once partnered with Maserati to get them off the ground, and now the same group is basically taking them to the cleaners. the promasters made it to the states as basically rebadged Ducatos basically at cost. Chrysler saw very limited revenue from it.
Chryslers other big problem is they are market-blind. Their strong suits are already dominated by fiat. Americans want reliable cheap cars that are good on gas, but things like the Charger RT and Hellcat challenger are loss-leaders that arent doing much of anything but filling press releases and patching the bald spots on the dwindling boomer market that remembers hellcat (and can afford it.)
- coredog64 7y agoRenault did a deal with AMC/Jeep/Eagle in the late 80s. The Renault 21 was initially imported as the Renault Medallion and then renamed as the Eagle Medallion. https://en.m.wikipedia.org/wiki/Eagle_Medallion https://en.m.wikipedia.org/wiki/Eagle_Medallion
- Shivetya 7y agoFiat got Chrysler to get Ram and Jeep. Ram took off very well and recently had landed many accolades for their trucks. Jeep turned around nicely but has seen a slide for the last few quarters but has a solid foundation of vehicles to include their first PHEV and pickup. Chrysler/Dodge are mostly sustained by their minivans. Chrysler/Dodge was the first of the American brands to ditch sedans. Ford and GM followed. Challenger/Charger are FCA's pony cars kept to compete with Camaro and Mustang. Combine the two FCA cars with their sibling the 300 and that was nearly two hundred thousand sales, not bad for an old platform. What keeps them going, they don't get stuck with the same boring colors year to year and get other tweaks people want from them. However they are one of the biggest risk factors for FCA too as they are vulnerable to fuel prices. Renault simply is not a good fit because getting Renault means taking France too and that would pretty much sink them in legacy costs and employment structures. The better opportunity is to look to both China but locally to move East into the long gone Warsaw pact states. FCA's real loss was the passing of Marchionne before he could do an orderly and planned handing off control to a picked successor.
- petre 7y agoThese models won't sell well in former Warsaw Pact states. Most of them are in the EU now and fuel is quite expensive. People in those states buy mainly used German cars, mainly diesels, plus cheap domestic cars (Dacia and Skoda) and French cars (Renault and PSA brands). They'd probably sell in North Africa and maybe the Arabic peninsula but that's debatable. The Emiratis are so well off that their police drives Lamborghinis, so I pretty much doubt they'll buy Dodge Chargers. China will just copy whatever model and produce a lookalike at 1/3 the price. They did it with the Range Rover Evoque and other cars.
- seanmcdirmid 7y agoJeep was one of the first car manufacturers in China, Jeep does well there already, although its brand has definitely been waning in the last 10 years.
- Intimatik 7y agoI live in a post Warsaw Pact state. The most popular car maker here is Toyota with Corolla as the most popular model. I think I don't need to explain why. The gas is not cheap here in comparison with Russia and Belarus, but is waaay cheaper than what it costs in the eurozone States with the exception of Germany (diesel is also cheap in Spain btw). Challenger/Charger/Mustang is mostly popular with rich kids who are spending their parents money on gas. I own a Scion and love it, though had to import car parts from Russia as Scions were never sold in the EU and Russians get used Japanese cars almost for free. Scions are normal Japanese Toyotas with a steering wheel on the left side.
- gsnedders 7y ago> cheap domestic cars (Dacia and Skoda) (Owned by Renault and VW Group respectively, for those unfamiliar with those marquees.)
- petre 7y agoAnd built domestically or in Casablanca, Morocco. Skodas built in India, Russia or China are for those particular markets.
- jdhn 7y ago>things like the Charger RT and Hellcat challenger are loss-leaders How is FCA not making a profit off of them, especially the Hellcat? The platform that they ride on has to be paid off by now due to its age, and the Hellcat sells at a premium compared to the other products in the FCA lineup, with the exception of high trim Ram 1500/2500/3500's.
- rpiguy 7y agoProfits from RAM and Jeep kept FCA alive for a decade while Fiat floundered. Consumers do not want cheap, reliable cars that are good on gas - they want SUVs. Even Toyota knows this and has three times as many SUV models than cars. Fiat and Alfa sales are down in the US again almost 30% but RAM and Jeep are selling like gang busters. Dodge and Chrysler brands sales suffer primarily because they lack SUVs.
- stjohnswarts 7y agoYep Americans want SUVs and Trucks mostly these days. Most people who want cars either want cheap/gas efficient ones (commuters/college students) or muscle cars. The 4 door sedan is in a death spiral