QOTD: Does Fiat Chrysler Automobiles Need More Cars?

Timothy Cain
by Timothy Cain

The American new vehicle market is evolving. Indeed, the rate of evolution suggests it may be evolving fast enough to be deemed a revolution.

Passenger car market share is down to 37 percent through the first five months of 2017. We’re not even a decade removed from a time when passenger cars accounted for more than half of all U.S. auto sales. Cars have lost 4 percentage points of U.S. market share in just the last year. While pickup trucks, SUVs, and crossovers added 225,000 sales, year-over-year, in the first five months of 2017, passenger car volume tumbled by more than 145,000 units.

As a result, automakers are giving up on cars. Not wholeheartedly, not across the board, not routinely. But in specific areas. And this couldn’t be more obvious at Fiat Chrysler Automobiles, where the company no longer has entries in the two largest passenger car sectors. Heading into 2018, FCA’s car branch will market two Dodges, one Chrysler, and a handful of Fiats, Maseratis, and Alfa Romeos.

Is that enough? Or does Fiat Chrysler Automobiles need more cars?

Gone from FCA’s car lineup are the Dodge Dart and Chrysler 200, the lone remaining compact and midsize cars in the automaker’s U.S. lineup.

This leaves two full-size sedans: Dodge Charger and Chrysler 300 and a full-size coupe, the Dodge Challenger, in the mainstream section of the lineup. That trio of cars accounts for just 3 percent of America’s passenger car market.

The Fiat 500 will be FCA’s lone remaining small car of note. The Fiat 500L is an afterthought that generates barely more than 100 sales per month. The Fiat 124 Spider joins the Dodge Challenger on the sporty side of the lineup. Then there’s the Alfa Romeo Giulia and 4C, the former of which is still ramping up. (883 were sold in May.) Maserati also markets a trio of cars: two sedans plus the GranTurismo.

Together, all of these cars and the discontinued models produced 123,588 U.S. sales in the first five months of 2017, 41,993 (25 percent) fewer than during the same period of 2016. For perspective, Toyota and Lexus combine for roughly 84,000 car sales per month, Hyundai and Kia combine for 72,000 monthly car sales, General Motors and American Honda each sell roughly 64,000 cars per month, and the Ford Motor Company sells nearly 52,000 cars per month.

14 percent of FCA’s year-to-date U.S. sales volume is car-derived.

Should FCA forge ahead without a proper car lineup, safe in the knowledge that consumers want Jeeps and Rams, Grand Caravans and Pacificas? Safe in the knowledge that it would be a wasted effort because car consumers don’t want Dodge and Chrysler cars?

Or should FCA work harder to find a way to expand its car portfolio through midsize and compact partnerships?

[Image: Fiat Chrysler Automobiles]

Timothy Cain is a contributing analyst at The Truth About Cars and Autofocus.ca and the founder and former editor of GoodCarBadCar.net. Follow on Twitter @timcaincars.

Timothy Cain
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  • Whatnext Whatnext on Jun 22, 2017

    What Chrysler needs is a large crossover (as much as I dislike them). The 300 styling cues would transfer very nicely to that body style (think F-Pace). I'd also love to see a new two door Imperial based of the Challenger as a halo car. Yeah its a dying segment, but does it a big luxury coupe at a reasonable price.

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    • Donnyindelaware Donnyindelaware on Jun 22, 2017

      Thats actually a good idea and may give the Chrysler brand a much needed resurgence

  • Seanx37 Seanx37 on Jun 23, 2017

    FCA can't sell the cars it already makes. Not without serious MASSIVE discounts, or extremely low leases. The thing is, no one else can either. I think the day of the car might be over. CUV's and SUVs for everyone, it appears. FCA should have spent the money they probably wasted on Alfa on a new Grand Cherokee. It's old. And sales have fallen to all the newer competition.

  • MaintenanceCosts We need a $15k EV, probably a tall hatch, that satisfies US safety standards with reasonable comfort and durability and a warranty. That would actually be affordable to the median wage earner.
  • Calrson Fan I'll take a simple over cheap. Although that should equate to cheap or at least cheaper. I'm so over all the useless & intrusive tech. common in today's cars & trucks. Which is why I drive older stuff. We need more vehicles geared towards simplicity and longevity, like the Slate. if that ever makes it to market. As I once heard on American Hot Rod, less is more. Isn't that the truth!
  • 28-Cars-Later Maybe it will eventually change but as of right now even if you spend the money to build these stations everywhere, if the electricity sold is 100%+ of what its sold for in residential rates it will never take off. To a degree a convenience charge amount (of not 100%) could fly but smart owners will understand the trade off and limit their use of it. Those without home charging capabilities simply won't continue to pay through the nose on electricity - a utility of which has skyrocketed even wholesale and I suspect will continue to do so.
  • KOKing Need and want are definitely different, especially today. Not only are relative expectations different from 40-50yrs ago, but used cars' value/features/quality probably make them more attractive options than a couple generations ago. I suspect for the same $21k as a Hyundai Venue, a lot of people would choose a ~5yr old Ford Explorer instead. Today's gas prices might make some think twice, but a lot of the same people probably won't think as far as repair costs.I think something interesting to look at in other global markets where historically cheap, small cars continue to be available, where cheap Chinese cars are becoming available, whether the latter end up quickly displacing the former in the low-cost segment long-term (I suspect yes).
  • Lorenzo What the American market needs is a 1997 Honda Civic EX in coupe or sedan form, fully loaded like in 1997 at 1997 prices ($19K) or a slightly bigger 1997 Nissan Altima GXE sedan with the larger 2.4L engine and reliable Jatco automatic for about the same price. I have owned both, and wish I had either one back so I could get rid of the keyless Cr**p, the drive-by-wire, and the touch screen, and operate the car myself with buttons and knobs..
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