'The Brand Has Seen Some Softening,' Is One of the Most Accurate Statements Chrysler Has Ever Made About Chrysler
“When I look at the new Imperial,” Chrysler Corporation chairman Lee Iacocca said in 1980, “I see an electronic marvel.”
He may have been reaching.
“We understand the speed with which we have to act,” Chrysler Group CEO Bob Nardelli said in mid-2008, months before Chrysler’s collapse showed that whatever understanding there was did not find itself successfully implemented.
More recently, however, in Fiat Chrysler Automobiles’ recap of its brands’ 2018 U.S. sales performance, the company’s own take on the Chrysler marque’s results was stunningly honest. “Overall,” FCA said in its press release, “the brand has seen some softening during the year following the continued wind-down of the Chrysler 200 and the Town & Country.”
Ya don’t say.
Chrysler’s abandonment of its namesake brand has not been a wholesale Abraham/Hagar desertion. As recently as 2016, FCA offered Chrysler meaningful sustenance in the form of the Chrysler Pacifica. Whilst the Dodge brand didn’t merit any minivan favor and was (and is) left to battle with the antiquated Grand Caravan, the Chrysler brand received an all-new minivan platform.
Indeed, the stylish Pacifica managed to increase its sales tally by a wide margin in 2017, not unexpectedly, and then by a statistically inconsequential margin in 2018.
But 2016 was the very same year that Chrysler killed off its best seller, the 200, as the brand’s poorly executed midsize sedan – by the company boss’s own admission – could only be sold in high volumes with excessive incentivization or at extraordinarily low volumes with decreased incentives. It was destined to be unprofitable in either case.
The result, in 2017, was a Chrysler brand that reported its lowest U.S. sales since the 2009 turmoil. The result, in 2018, was a Chrysler brand that reported even worse output. Only 165,964 Chrysler-branded vehicles were sold in the United States in 2018, a 12-percent year-over-year drop that FCA refers to as “some softening.”
The Pacifica produced 7 out of every 10 Chrysler sales in 2018, leaving most of the remainder for the aged 300, a full-size sedan lingering in a markedly anti-full-size sedan market.
And that’s it. That’s all Chrysler has. There’s no compact crossover to challenge the Toyota RAV4. There’s no subcompact crossover to battle Mazda CX-3s and Buick Encores. Chrysler wasn’t the brand to introduce the Telluride at NAIAS 2019 – that was Kia. Would Chrysler be the brand to produce a uniquely American Volkswagen Arteon? Apparently not.
It’s not as though Chrysler is America’s Alfa Romeo, a brand with virtually no experience as a full-line auto brand. Chrysler’s mainstream status is recent. In 2005, Chrysler owned 4 percent of the U.S. market with a six-vehicle family: Crossfire sports coupe, Sebring midsize sedan, 300 full-size sedan, three-row Pacifica crossover, Town & Country minivan, and the PT Cruiser, a loathe-it-if-you-must design icon.
From that 2005 strong point, Chrysler’s situation fell apart. Sales are 74 percent lower now than they were in 2005, having declined in 8 of the last 13 years. In fact, Chrysler volume has fallen by nearly half since 2015, and the brand’s market share is now below 1 percent.
Of course, the real story lies not in the fact that Chrysler sales are falling. Sales are bound to decline when a lineup is decimated.
No, the real story is that the “softening” shows no signs of, well, hardening. Chrysler, as Larry Vellequette wrote in May 2018, “isn’t weak because consumers abandoned it.”
“It’s weak because FCA did.”
This isn’t the story of, say, Lincoln, where a resurgent Navigator and a stunning Aviator lend credence to the notion of a strengthened position in the luxury market.
This isn’t the story of Cadillac, where a gradual (China-based) global sales ascent is fuelled by XT-badged crossovers, the likes of which are completely absent in the Chrysler lineup.
Indeed, this isn’t the story of tiny Mazda, which is diving headlong into a partnership with Toyota for U.S. production of its fourth utility vehicle.
It all closely resembles the end of a story.
[Images: Fiat Chrysler Automobiles]
WallMeerkat on Jan 21, 2019
Maybe FCA need to look at VW group for how to manage many brands SEAT and Skoda nip at the feet of VW, which encroaches upon Audi, then the luxo brands of Lamborghini, Porsche and Bentley. Maybe given the relative failure of Alfa Romeo to make inroads, they should regrille and rebadge them as Chrysler. (They did this for Lancia in the UK/Ireland - for a while you could buy a Chrysler Delta - and the opposite in continental Europe when they rebadged Chryslers as Lancia - 300 as Thema)
CanadaCraig on Jan 22, 2019
Only a fool would believe that the Chrysler brand should be killed. The 300 is still selling well. Better in 2018 than in many years. To think of the Chrysler name as main-stream or basic transportation is ridiculous. No one who knows anything about cars considers the Chrysler brand as being below Dodge. FCA is in a position define 'Chrysler' any way they like. The opportunity exists to create an American flagship brand.
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- Art Vandelay I always liked those last FWD 300's. Been ages since I've seen one on the road though. Lots of time in the RWD ones as rentals. No complaints whatsoever.
- Cardave5150 I've had 2 different 300's - an '08 300SRT and an '18 300C. Loved them both a LOT, although, by the time I had the second one, I wasn't altogether thrilled with the image of 300's out on the street, as projected by the 3rd or 4th buyers of the cars.I always thought that the car looked a little stubby behind the rear wheels - something that an extra 3-4" in the trunk area would have greatly helped.When the 300 was first launched, there were invitation-only meet-and-greets at the dealerships, reminding me of the old days when new model-year launches were HUGE. At my local dealer, they were all in formalwear (tuxes and elegant dresses) with a nice spread of food. They gave out crystal medallions of the 300 in a sweet little velvet box (I've got mine around the house somewhere). I talked to a sales guy for about 5 minutes before I asked if we could take one of the cars out (a 300C with the 5.7 Hemi). He acted like he'd been waiting all evening for someone to ask that - we jumped in the car and went out - that thing, for the time, seemed to fly.Corey - when it comes time for it, don't forget to mention the slightly-stretched wheelbase 300 (I think it was the 300L??). I've never found one for sale (not that I've looked THAT hard), as they only built them for a couple of years.
- Jkross22 "I’m doing more for the planet by continuing to drive my vehicle than buying a new one for strictly frivolous reasons."It's not possible to repeat this too much.
- Jeff S Got to give credit to Chrysler for putting the 300 as a rear wheel drive back on the market. This will be a future classic.
- Lou_BC How to Fix Auto Media? Stop fixating on soft touch plastics and infotainment systems. I did quite a bit of research on my ZR2. There was no mention of the complexity of putting the transfer case into neutral. (9 step process). They didn't talk about how the exhaust brake works with tow/haul mode. No mention that the exhaust brake does not work with off-road mode. Nannies only stay turned off with the lockers engaged. Only one review mentioned the tail pipe as a vulnerability.