Chrysler Has No Firepower

[Variance]

Chrysler Has No Firepower

...plans, that is. Not anymore.

Chrysler Group is letting the flame go out on its Firepower concept, the Hemi-powered “grand tourer” that stoked performance ambitions for the auto maker’s core brand.

“We’re not doing Firepower,” Trevor Creed, senior vice president-design, says. “We just couldn’t find a viable way to do it.”

Reeling from the effects of bloated inventories, which led to a $1.5 billion third-quarter loss and an internal drive to shave $1,000 per vehicle-production cost, Chrysler is refocused on profitability.

Against this backdrop, the auto maker has said no product will enter its pipeline unless it has realistic profit potential. This approach killed the Jeep Gladiator concept earlier in the year, which debuted alongside the Firepower at the 2005 North American International Auto Show in Detroit.

And it even caused the Dodge Challenger concept – a can’t-miss product in the eyes of most industry observers – to undergo rigorous scrutiny before the auto maker declared it would build the muscle car in 2008.

Ward's Auto

[FAPTurbo]

I saw this coming, but it's still sad to hear.

[DetroitNut90]

Eh...I'd rather them spend the money upgrading what they already have.

[Guest YellowJacket894]

The Gladiator would have generated profit. DCX was wrong about that. And, plus, what's so hard about making a Wrangler pickup or a heavy-duty platform rebodied Dakota?

Stupid.

I just hope the money not funneled into the Firepower makes the rest of at least Chrysler's products damn impressive. If I was in a position similar to Bob Lutz's at Chrysler Group, I wouldn't have allowed things to get in such shape. The Sebring would have been wiped from the company's to-do slate.

[balthazar]

Not that there's any need for this vehicle, but couldn't the 'D' of DCX float 'C' the funds to build it? What IS the back-n-forth of the finacials at D / CX?

[Flybrian]

Good. We have the Compass and Sebring instead. Awesome.

[91z4me]

This conflicts with a number of reports saying the production Firepower-like vehicle was coming quite quickly. Especially give that it is just a cheaper version of the Viper and would make the Viper more profitable. I don't know how they can't put together a business case for it.

[Sixty8panther]

I thought the front of this car was ugly as sin. The

grille looks more "tacked on" than most S. Korean

cars and those lines down the hood are even less

flattering than on the Crossfire.

Screw this thing... bring us a two door hardtop

version of the 300c instead.

[Cadillacfan]

I'm not too surprised when looking back at recent Chrysler concepts that were rumored to go into production. The ME Four twelve, the compact triplets for Dodge, and now this. All were good ideas but weren't taken very seriously by the execs. Granted, this concept came out at the height of the 300s popularity and it looked like DCX was on a real upswing.

Now, they feel they need to build more homely looking vehicles like the Sebring, Jeep Compass, Dodge Nitro, Dodge Caliber, and Dodge Avenger instead of these vehicles. The company is in very bad shape. Think GM during the time period between 1996-2003...that's how bad they are right now.

[Intrepidation]

That's ashame...I loved that car. How hard would it be to build it in the same plant as the Viper...make the platform more profitable while giving Chrysler a halo car to replace the Crossfire.

[ZL-1]

This conflicts with a number of reports saying the production Firepower-like vehicle was coming quite quickly.  Especially give that it is just a cheaper version of the Viper and would make the Viper more profitable.  I don't know how they can't put together a business case for it.

230209[/snapback]

Lack of demand? I don't think Corvette buyers would trade in their cars for the Firepower, and I wouldn't see buyers of more 'exotic' cars trading in for a Chrysler either. Edited December 20, 2006 by ZL-1

[91z4me]

Lack of demand? I don't think Corvette buyers would trade in their cars for the Firepower, and I wouldn't see buyers of more 'exotic' cars trading in for a Chrysler either.

230431[/snapback]

If Dodge can sell just 10k a year it makes the Viper production more profitable. That is your business case. I doubt that 10K would all come from Corvette buyers. But it may entice some people who may have buy something like a used SLK or another used sports car.

[ZL-1]

If Dodge can sell just 10k a year it makes the Viper production more profitable.  That is your business case.

230434[/snapback]

Not necessarily.

Think of this as two separate projects: 'Project Viper' and 'Project Firepower'. 'Project Viper' will likely benefit from economies of scale/scope from undertaking 'Project Firepower'. However, if 'Project Firepower' isn't profitable (my guess was insufficient demand, but it could be for any other reason), it may be that whatever negative NPV this 'Project Firepower' generates offsets the positive NPV generated by the economies of scale/scope in 'Project Viper'.

[MyerShift]

Not that there's any need for this vehicle, but couldn't the 'D' of DCX float 'C' the funds to build it? What IS the back-n-forth of the finacials at D / CX?

230194[/snapback]

There is no back and forth. It all goes to the "D" unfortunately.

Hopefully Chrysler facelifts/cans all of the recently introduced ugly quasis just introduced and gets back in form with cars of world-class beauty and presence.

The Firepower makes so much more sense than something like the ME412.