Tuesday, 30 October 2007

Chrysler and Ford want to simplify vehicle lineups, cutting models and option packages

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We often hear about the need for automakers to develop and launch the next “winner.” Who will dethrone the Toyota Camry from the position of American’s best selling passenger car? Can foreign automakers really compete with domestic iron in the full size truck segment? How can anyone match the Chevy Corvette Z06’s performance-to-price ratio? All are important questions.

What we don’t often consider, perhaps due to our inherent forgiving natures, is which models a manufacturer should axe in the interest of profitability. But according to The Detroit News and Automotive News, both Chrysler and Ford are planning to simplify their lineups in the near future, cutting out the deadweight and developing leaner operations.

Chrysler’s board of directors is expected today to approve the discontinuation of the Chrysler Pacifica crossover, Dodge Magnum wagon and Chrysler PT Cruiser hatchback. All three have experienced sales volume drops around 30 percent this year. However, they haven’t always been forgettable models. When the PT Cruiser debuted it won the 2001 North American Car of the Year award, beating out the first generation Toyota Prius and Honda Insight hybrids. Car and Driver also declared it one of the “Ten Best” vehicles that year.

The Magnum was renowned in 2004 for its Hemi-power option and innovative liftgate, but has always been overshadowed by the related Chrysler 300 sedan. Chrysler applied a facelift to the Magnum for the 2008 model year, which regrettably increased its resemblance with the all-new Dodge Grand Caravan. Finally, the Pacifica has never been received as warmly as expected, despite Mercedes-Benz derived suspension and strong crash test performance. Chrysler updated the Pacifica for 2007, revising the exterior and adding a new V6 engine paired with a six-speed automatic transmission.

Ford is embracing a different strategy, cutting trim levels and options packages from existing models and including more equipment as standard. Back in May The View from Inside reported that both Ford and Chrysler were aiming to streamline their products offerings, as 16,000 different Ford Mustang V6 Deluxe unique configurations is a bit excessive. Ford’s CEO Alan Mulally told Automotive News that the simplification process is underway, and that “Ford will build on it every year with every model.” We’ll be interested to watch how Ford packages, prices and markets the new model lineups.

Sources: The Detroit News and Automotive News [Subscription required]
Image: Chrysler Media [2008 Chrysler PT Cruiser]

Posted by industry at 9:00 AM in Headlines in the automotive world

 

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