Chrysler News: Fiat Chrysler Automobiles Will Not Build Any Passenger Cars In the U.S. Early Next Year

[William Maley]

Fiat Chrysler Automobiles will produce no more passenger cars in the U.S. early next year. The Dodge Dart will end production in September, while production of the Chrysler 200 will cease in December. This is to make way for more production of SUVs and trucks - Jeep Cherokee at Belvidere, Illinois and Sterling Heights, MI for the next-gen Ram 1500.

 

"By the time we finish with this, hopefully, all of our production assets in the United States — if you exclude Canada and Mexico from the fold — all those U.S. plants will be producing either Jeeps or Ram," said FCA CEO Sergio Marchionne during a call with analysts yesterday.

 

Why would FCA end passenger car production in the U.S.? Profit margins. The Detroit Free Press reports this is part of Marchionne's multibillion-dollar plan to match the profit margins seen at Ford and General Motors. Part of the plan involves taking advantage of the popularity of crossovers, SUVs, and trucks in the U.S.; low gas prices, and the lower costs of producing passenger cars in Mexico.

 

"When you look at the economics of car manufacturing ...the margins that we were getting from our experience of both the Dart and the Chrysler 200 ...yielded returns that would not, on a competitive basis, match even anything close or remotely close to what we could derive from utilization of those assets in the Jeep or Ram world. So we have made that shift," Marchionne said.

 

Despite FCA ending production of both the Dart and 200, Marchionne said he is still looking for a partner to build these vehicles.

 

“I think we have made progress. We’re not in a position to announce anything."

 

But would any automaker be willing to take up FCA's offer?

 

"Who would want to commit to that capacity in their own plant when they didn't sell well when they were new?" said Dave Sullivan, an analyst with AutoPacific to Automotive News.

 

"No one wants to build sedans when their own capacity is at a premium and they can't build enough crossovers to satisfy demand."

 

Source: Detroit Free Press, Automotive News (Subscription Required)

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[G. David Felt]

The falsehood in his statement of profitability by building out of the US is that all other auto companies are able to produce and break even or make a profit on building cars in the US.

 

He is an idiot and incapable of really building an auto company.

 

MORON with a capital M! 

 

       

[balthazar]

Travesty of management.

 

 

RIP, Chrysler Corporation.

[G. David Felt]

Sweet Photo Balthazar!

[smk4565]

"Imported from Detroit"  can change to "Imported from Mexico"

 

As I have said on other threads, I don't really care so much what country the car is made in, or where the corporate office.  But for those that want the "buy American" run away from this company.  The product is made outside of the USA, the money goes to Italy, so Sergio can can live out some fantasy of Alfa Romeo competing with BMW and the Ferrari F1 team beating Mercedes.  More info on those stories at www.nevergoingtohappen.com

[loki]

no more import from detroit... for a time

[Blake Noble]

I'll just copy-repasta something I put on Facebook earlier today.

 

Marchionne is more Lynn Townsend than Lee Iacocca, as it turns out.

 

Can you smell 1976 in the air? Mmmmmm... Smells like green velour and rich Corinthian leather. And bankruptcy. Especially bankruptcy.

 

Mark my words, if something (hint: its name sort of sounds like Maraschino) doesn't change at FCA, they will be bankrupt and begging and pleading for another bailout in the near future.

 

If that's the case, this time I say let FCA eat cake.

[G. David Felt]

"Imported from Detroit"  can change to "Imported from Mexico"

 

As I have said on other threads, I don't really care so much what country the car is made in, or where the corporate office.  But for those that want the "buy American" run away from this company.  The product is made outside of the USA, the money goes to Italy, so Sergio can can live out some fantasy of Alfa Romeo competing with BMW and the Ferrari F1 team beating Mercedes.  More info on those stories at www.nevergoingtohappen.com

Agree with you on this I say!

[daves87rs]

Well, since they were barely selling ( 200's home plant still has plenty extra setting in the lot!), it's stupid-but can't be any dumber than building them....thinking the workers would rather have the overtime building stuff than just staying at home.

 

The 200? Not a bad car.....but the darn thing still has issues that keeps a line line of them behind my local dealership waiting on repairs/recall stuff.  While bigger to me-it is actually a very sharp car in person...

 

Dart- Cute, but dated like just a few months after it came out. Still a bit more jellybean than I would like. Neighbors have them (two), and both like their Darts and had very few issues at all with them. But they never did anything with the Dart to go against the big boys...even when gas prices were higher.  What marketing.......

 

 

When you always play from behind like FCA does, you're going to lose a few bucks unless you have a goldmine like Jeep making you money. A better plan would have to have some great leases/buys on these cars-not to lose money (anyways) but get these cars into the hands of consumers and generate some positive buzz! Happy people will tell their friends....and they might not have to give them away....

[rkmdogs]

What is going to happen to the Dodge cars--- Charger Challenger?

Where will they be made?

[Suaviloquent]

Well, to be honest, it's better they kill off the unprofitable cars.

 

But placing all the eggs in the hopes of a partnership with bigger rivals were just plain dumb. 

[Blake Noble]

What is going to happen to the Dodge cars--- Charger Challenger?

Where will they be made?

Those cars are made in Canada, in FCA's Brampton, Ontario plant. Thus, they are not American made and are exempt from Marchionne's stupidity.

[daves87rs]

Well, to be honest, it's better they kill off the unprofitable cars.

 

But placing all the eggs in the hopes of a partnership with bigger rivals were just plain dumb. 

 

 

Yep.....what better way to put it all on the line....

[Suaviloquent]

I just feel for SHAP man. They put the same amount of money into that facility that Ford did to the dearborn plant. And it's ALL sitting there, idle right now.

 

The best thing they can do is sell all the IP of the 200 and Dart to some company like Mitsubishi or like some Chinese company that wants to sell cars here, and have some royalty clauses so they make some money off of those cars.

 

Like, the 200 would make a GREAT Mitsubishi Lancer or if they even wanted a midsize seller, a GALANT. Seriously, like Mitsu!!! LOOK NO FURTHER.

[smk4565]

FCA needs to sell Jeep to someone else, Honda, Hyundai, Mazda, GM, anyone.  We'd have more reliable Jeeps with more modern powertrains, which is a win.  And then the rest of FCA can just close up shop and go away.  Come 2018 Chrysler will have the 300 and Pacifica, Dodge will have Charger/Challenger.  And 3 of those vehicles are dated already.  I don't see why they have those 2 brands around to sell 4 products total, half of which are going to Alamo and National.

[balthazar]

^ Well, the above just BEGS to be answered the way you have answered charges in the past RE the G-wagon. IE: customers like the Jeeps the way they are, and customers buy hundreds of thousands of Jeeps and, customers find them to be 4x4 icons, etc etc. 

[smk4565]

^ Well, the above just BEGS to be answered the way you have answered charges in the past RE the G-wagon. IE: customers like the Jeeps the way they are, and customers buy hundreds of thousands of Jeeps and, customers find them to be 4x4 icons, etc etc. 

Well yes customers like Jeep how they are, I am saying keep the look of Jeep, but Jeep is often a bottom 5 brand in reliability and isn't really know for fit and finish or gas mileage.  Imagine how much better a Jeep would be with a Honda 3.5 V6 that never breaks and is buttery smooth.

[balthazar]

You don't understand Jeep or its customers.

[Suaviloquent]

When you build up a brand, and you have loyalty, there is sometimes no need for "improvements."

 

And the Pentastar by all accounts is fairly smooth, revved higher it is a bit more gruff than say i-VTEC aka Earth Dreams V6 but some might just call it character.

 

 

Jeep is a printing machine, the best thing they can do is keep it authentic, but also tack on all the new must have options as extra to print even more money. 

[G. David Felt]

 

^ Well, the above just BEGS to be answered the way you have answered charges in the past RE the G-wagon. IE: customers like the Jeeps the way they are, and customers buy hundreds of thousands of Jeeps and, customers find them to be 4x4 icons, etc etc. 

Well yes customers like Jeep how they are, I am saying keep the look of Jeep, but Jeep is often a bottom 5 brand in reliability and isn't really know for fit and finish or gas mileage.  Imagine how much better a Jeep would be with a Honda 3.5 V6 that never breaks and is buttery smooth.

 

So SMK you just described your beloved G-Wagon. Remember, Drew posted pictures of the mismatch of screws, piss poor fit n finish. 

 

Jeep faithful love the ease of working on the Jeep on the trail not if but when something fails. That is hard to do with a limited production g-wagon which I doubt would ever be on the Rubicon or any other off road trail.

 

I agree with you about the need for better reliability, but this is a perfect example of watch throwing a stone in a glass house as you can easily apply your statement to many MB products.

[smk4565]

First off, the G-wagon would beat any production Jeep off road.  Secondly, I doubt a Pentastar V6 is any easier to work on than a Honda V6, GM V6 or anything else.    Then you have the Renegade with the Fiat 1.4 multi air turbo which I doubt it easy to work on or reliable.  And lastly, the G-wagen had the very reliable 5.5 liter V8 for years, now they have the new 4.0 V8, but that is detuned version of the AMG engine, and based off the 2.0T so the bugs should be worked out by now.

 

Mercedes is almost always in the top 10 in reliability, Jeep almost always in the bottom 10 going back 15-20 years.   And I don't even blame Jeep so much, it is the fact that Jeeps are made with Fiat, Dodge/Chrysler engines.  Their best vehicle is the Grand Cherokee that is based on the mid-2000s M-class platform.  Jeep has really strong brand image, good marketing and loyal fan base.  I am not against Jeep, they have a focused brand and do many things right.  But Jeep would be better off if it wasn't owned by the worst car conglomerate there is.  Jeep would build a better product if it was owned by GM, Ford, Hyundai, Honda, Toyota, Mazda, take your pick.

[Blake Noble]

First off, the G-wagon would beat any production Jeep off road.  Secondly, I doubt a Pentastar V6 is any easier to work on than a Honda V6, GM V6 or anything else.    Then you have the Renegade with the Fiat 1.4 multi air turbo which I doubt it easy to work on or reliable.  And lastly, the G-wagen had the very reliable 5.5 liter V8 for years, now they have the new 4.0 V8, but that is detuned version of the AMG engine, and based off the 2.0T so the bugs should be worked out by now.

 

Mercedes is almost always in the top 10 in reliability, Jeep almost always in the bottom 10 going back 15-20 years.   And I don't even blame Jeep so much, it is the fact that Jeeps are made with Fiat, Dodge/Chrysler engines.  Their best vehicle is the Grand Cherokee that is based on the mid-2000s M-class platform.  Jeep has really strong brand image, good marketing and loyal fan base.  I am not against Jeep, they have a focused brand and do many things right.  But Jeep would be better off if it wasn't owned by the worst car conglomerate there is.  Jeep would build a better product if it was owned by GM, Ford, Hyundai, Honda, Toyota, Mazda, take your pick.

At one time, Daimler -- aka Mercedes -- basically owned Jeep.

Know what they chose to build?

This f@#king thing:

Your argument is invalid. Go home. You are drunk.

[smk4565]

The Compass platform is based on a Chrysler/Mitsubishi chassis, there is no Daimler in the Compass, even though Daimler did own Chrysler during it's development.  The only Jeep that has Daimler in it is the Grand Cherokee ("the most awarded SUV ever"), as the 2011 Grand Cherokee and Mercedes ML had most of their development work done while they were still merged.  Mercedes has a new chassis coming for the GLE/GLS in a year, Jeep has nothing because FCA is at the helm now, in 2025 the Grand Cherokee will still be using that 2011 ML chassis.

[Suaviloquent]

Chrysler will still build passenger cars in Canada. That's American enough, right? I mean it's definitely North, more North than the U.S.

 

Wanna know something interesting? Sergio graduated from York University with a bachelor degree, from a program that was the precursor to the now full-fledged faculty that has its own programs, EMBAs, everything, called Schulich School of Business, at York University, about 15 minutes from Markham, Ontario.

 

Another coincidence! You can guess why I know the the latter part of the above statement...and keep it to yourselves.