Chrysler Aims To Cut Three More Names By 2013
03 Juni 2009 - 9:07PM
Dow Jones News
Chrysler LLC aims to drop another three nameplates from its
product lineup by 2013 in an effort to better focus its advertising
and development spending.
Chrysler Vice Chairman Jim Press, in prepared remarks, said the
auto maker will move from 27 nameplates in 2007 to 20 in 2013.
Press is slated to defend Chrysler's move to cut 789 dealers during
a congressional hearing Wednesday. The auto maker filed for
bankruptcy April 30 and is working to merge with Fiat SpA
(FIATY).
"This is just a target," Chrysler spokesman Rick Denau said
Wednesday.
Chrysler sells vehicles under the Jeep, Dodge and Chrysler
brands. It has already stopped producing the Dodge Magnum, Chrysler
Pacifica, Chrysler Crossfire and PT convertible.
"Fewer nameplates with better product and customer market
coverage will help improve the overall return on our product
capital investment," Press said. "This means that dealers need to
have all three of our brands under one roof in order to offer a
full range of products and to optimize their profit potential."
Press didn't disclose what other names may be dropped but
speculation has focused on Chrysler's "sister vehicles." The
sisters are built on the same platforms but sold under two
different names.
They include the Chrysler Sebring and Dodge Avenger; the Dodge
Grand Caravan and Chrysler Town & Country minivans; Chrysler
Aspen and Dodge Durango and the Dodge Nitro and Jeep Liberty.
"Based on six major vehicle launches between 2005 and 2008,
Chrysler incurred approximately $1.4 billion incremental costs to
develop these multiple pairs of sister vehicles," Press said.
Press added that the auto maker spent $100 million alone in 2008
on two separate marketing campaigns to promote the redesigned Dodge
Caravan and Chrysler minivans. Press said the company could have
spent half the amount and generate about the same volume of
sales.
Chrysler isn't alone in wanting to rid itself of names or
brands. Ford Motor Co. (F) sold off its Jaguar and Land Rover
brands and is currently searching for a buyer for its Volvo Cars
unit. General Motors Corp. (GM) wants to dump its Saturn brand and
said Tuesday it plans to sell its Hummer brand to the China-based
Sichuan Tengzhong Heavy Industrial Machinery Company Ltd.
-By Jeff Bennett, Dow Jones Newswires; 248-204-5542;
jeff.bennett@dowjones.com