Chrysler & the Minivan Market

It should be a time to celebrate over at Chrysler. After all, the automaker's
two cross-town rivals have effectively abandoned the long-lucrative minivan
market, leaving the Chrysler Town & Country and Dodge Caravan the only two
remaining domestic offerings.
Unfortunately, despite the launch of highly-reviewed, all-new 2009 minivan
models, Chrysler is watching its share of the critical segment plunge.
Together, sales of its two models have dropped a whopping 12 percent since
they were updated, last year, notes a report in today's Detroit Free Press.

Why is the proverbial $64 question. The Michigan maker would prefer to put
the blame on its move to scale back low-profit daily rental and other fleet
sales, as well as the decision to abandon the short-wheelbase version of the
Town & Country and Caravan models.

Perhaps, but there are other factors at play, analysts and observers tell
TheCarConnection.com. For one thing, Chrysler has been taking hits for
quality snafus, notably in the April issue of the influential Consumer
Reports magazine. And it doesn't help that while General Motors and Ford
have dropped out of the minivan race, key Asian competitors have only ramped
up their attack on the segment.

In a stunning surprise, Honda briefly overtook Chrysler on the sales charts,
late in 2007, though the American maker retained the lead for the full year.

It doesn't help that minivan sales, as a whole, have dipped by double-digit
numbers for the last two years in a row. A Chrysler spokesman recently
posted a review, on the company blog, insisting it's not time to "write off
minivans," but increased foreign competition, along with the overall
declining market, certainly is leading Chrysler officials to rethink their
options.

In recent months, Chrysler officials have announced plans to scale back
their overall line-up, eliminating weak models like the PT Cruiser
Convertible. And Vice Chairman Jim Press has asserted that a critical
corporate goal is to better differentiate what are now look-alike products
shared by divisions such as Chrysler and Dodge. Despite different
accessories, that pretty well describes the Town & Country and Caravan
minivans.

For the time being, it seems, Chrysler will have to re-jig its marketing
campaign to rebuild momentum for the struggling minivans, a move almost
certain to be accompanied by hefty new incentives, during the upcoming
Spring selling season.

Longer-term, however, some observers, the Free Press noted, are wondering if
Chrysler just might drop one of its current minivan offerings, opting to
switch to a different, more youth-oriented "people move" design, in line
with Ford's new Flex model. Which Chrysler model would go? The Dodge Caravan
has traditionally been the high-volume package, but its sales are slipping,
while the higher-priced Town & Country is faring unexpectedly well in the
marketplace.

One thing is clear, Chrysler can't afford to become an also-ran in the huge
market segment it created, nearly a quarter century ago. But finding the key
to a turnaround in the minivan market won't be easy.

Vintage added these comments in the current discussion du jour ...

> It should be a time to celebrate over at Chrysler. After all, the
> automaker's two cross-town rivals have effectively abandoned the
> long-lucrative minivan market, leaving the Chrysler Town & Country
> and Dodge Caravan the only two remaining domestic offerings.
> Unfortunately, despite the launch of highly-reviewed, all-new 2009
> minivan models, Chrysler is watching its share of the critical
> segment plunge. Together, sales of its two models have dropped a
> whopping 12 percent since they were updated, last year, notes a
> report in today's Detroit Free Press.
>
> Why is the proverbial $64 question. The Michigan maker would
> prefer to put the blame on its move to scale back low-profit daily
> rental and other fleet sales, as well as the decision to abandon
> the short-wheelbase version of the Town & Country and Caravan
> models.
>
> Perhaps, but there are other factors at play, analysts and
> observers tell TheCarConnection.com. For one thing, Chrysler has
> been taking hits for quality snafus, notably in the April issue of
> the influential Consumer Reports magazine. And it doesn't help
> that while General Motors and Ford have dropped out of the minivan
> race, key Asian competitors have only ramped up their attack on
> the segment.
>
> In a stunning surprise, Honda briefly overtook Chrysler on the
> sales charts, late in 2007, though the American maker retained the
> lead for the full year.
>
> It doesn't help that minivan sales, as a whole, have dipped by
> double-digit numbers for the last two years in a row. A Chrysler
> spokesman recently posted a review, on the company blog, insisting
> it's not time to "write off minivans," but increased foreign
> competition, along with the overall declining market, certainly is
> leading Chrysler officials to rethink their options.
>
> In recent months, Chrysler officials have announced plans to scale
> back their overall line-up, eliminating weak models like the PT
> Cruiser Convertible. And Vice Chairman Jim Press has asserted that
> a critical corporate goal is to better differentiate what are now
> look-alike products shared by divisions such as Chrysler and
> Dodge. Despite different accessories, that pretty well describes
> the Town & Country and Caravan minivans.
>
> For the time being, it seems, Chrysler will have to re-jig its
> marketing campaign to rebuild momentum for the struggling
> minivans, a move almost certain to be accompanied by hefty new
> incentives, during the upcoming Spring selling season.
>
> Longer-term, however, some observers, the Free Press noted, are
> wondering if Chrysler just might drop one of its current minivan
> offerings, opting to switch to a different, more youth-oriented
> "people move" design, in line with Ford's new Flex model. Which
> Chrysler model would go? The Dodge Caravan has traditionally been
> the high-volume package, but its sales are slipping, while the
> higher-priced Town & Country is faring unexpectedly well in the
> marketplace.
>
> One thing is clear, Chrysler can't afford to become an also-ran in
> the huge market segment it created, nearly a quarter century ago.
> But finding the key to a turnaround in the minivan market won't be
> easy.
>
what do YOU suggest?

--
HP, aka Jerry

"And, that's all I'm going to say about that" - Forrest Gump

There is nothing Chrysler can do. It has no reputation left to it; the days
of "Chrysler" having a quality connotation are long gone. Only the Jeep
brand has some brand equity. Chrysler has the wrong products for the times
and doesn't have the cash to design something new. Look at all of the
company's products and ask which one is a winner in its segment, which one
does anything better than a competitor, and then ask why they even bother to
keep the plants running. There's no way that an outfit like Cerberus is in
this for the long run. Their sole purpose is to make money for their
investors, any way they can, even if it means dismembering Chrysler and
selling it off piecemeal. Perhaps if management were held to a principle of
being paid only if they succeeded, with no golden parachutes for anyone,
that would help inspire them a bit, but that won't happen. So, just like it
takes a long time for all parts of a mushroom infestation to die off, bit by
bit, Chrysler will take some time dying. But it's inevitable. Over the
years the company has squandered all of its once proud brand reputations,
has sold nothing but crap to its poor benighted customers, and has managed
to keep afloat only by selling massively to fleets. Wow, what a brand to
aspire to! I don't think I've seen a single Chrysler Sebring or Dodge
Avenger without a rental sticker on it. And the only vehicle with any
decent reliability rating is the Calibre. No, Chrysler's finished.

Max

"Vintage" > wrote in message
...
> It should be a time to celebrate over at Chrysler. After all, the
> automaker's two cross-town rivals have effectively abandoned the
> long-lucrative minivan market, leaving the Chrysler Town & Country and
> Dodge Caravan the only two remaining domestic offerings.
> Unfortunately, despite the launch of highly-reviewed, all-new 2009 minivan
> models, Chrysler is watching its share of the critical segment plunge.
> Together, sales of its two models have dropped a whopping 12 percent since
> they were updated, last year, notes a report in today's Detroit Free
> Press.
>
> Why is the proverbial $64 question. The Michigan maker would prefer to put
> the blame on its move to scale back low-profit daily rental and other
> fleet sales, as well as the decision to abandon the short-wheelbase
> version of the Town & Country and Caravan models.
>
> Perhaps, but there are other factors at play, analysts and observers tell
> TheCarConnection.com. For one thing, Chrysler has been taking hits for
> quality snafus, notably in the April issue of the influential Consumer
> Reports magazine. And it doesn't help that while General Motors and Ford
> have dropped out of the minivan race, key Asian competitors have only
> ramped up their attack on the segment.
>
> In a stunning surprise, Honda briefly overtook Chrysler on the sales
> charts, late in 2007, though the American maker retained the lead for the
> full year.
>
> It doesn't help that minivan sales, as a whole, have dipped by
> double-digit numbers for the last two years in a row. A Chrysler spokesman
> recently posted a review, on the company blog, insisting it's not time to
> "write off minivans," but increased foreign competition, along with the
> overall declining market, certainly is leading Chrysler officials to
> rethink their options.
>
> In recent months, Chrysler officials have announced plans to scale back
> their overall line-up, eliminating weak models like the PT Cruiser
> Convertible. And Vice Chairman Jim Press has asserted that a critical
> corporate goal is to better differentiate what are now look-alike products
> shared by divisions such as Chrysler and Dodge. Despite different
> accessories, that pretty well describes the Town & Country and Caravan
> minivans.
>
> For the time being, it seems, Chrysler will have to re-jig its marketing
> campaign to rebuild momentum for the struggling minivans, a move almost
> certain to be accompanied by hefty new incentives, during the upcoming
> Spring selling season.
>
> Longer-term, however, some observers, the Free Press noted, are wondering
> if Chrysler just might drop one of its current minivan offerings, opting
> to switch to a different, more youth-oriented "people move" design, in
> line with Ford's new Flex model. Which Chrysler model would go? The Dodge
> Caravan has traditionally been the high-volume package, but its sales are
> slipping, while the higher-priced Town & Country is faring unexpectedly
> well in the marketplace.
>
> One thing is clear, Chrysler can't afford to become an also-ran in the
> huge market segment it created, nearly a quarter century ago. But finding
> the key to a turnaround in the minivan market won't be easy.
>
>

They're toast. With another 15 percent overall market drop coming this year
the Cerebliss dudes are in so far over their heads that they're upside-down.
Their money scheme in Japan is unraveling, they don't have a clue about what
they're doing, and the notes are coming due. Bye-bye Chrysler. Bye-bye
Chrysler employees' retirements. Let's see, there will be left manufacturing
in the USofA by 2012:
GM - Ford USA (both half today's sizes)
Honda - Nissan - Toyota - Kia (taking advantage of high fuel economy
platforms)
Mercedes - BMW - Porsche Holdings (half of US production will include
vehicles for export as US labor will be dirt cheap and employers won't be
supplying health care or other benefits).
But for Chrysler?
It's over.

--
Vote for Ponzi - the US economy depends on him!


"Vintage" > wrote in message
...
> It should be a time to celebrate over at Chrysler. After all, the
> automaker's two cross-town rivals have effectively abandoned the
> long-lucrative minivan market, leaving the Chrysler Town & Country and
> Dodge Caravan the only two remaining domestic offerings.
> Unfortunately, despite the launch of highly-reviewed, all-new 2009 minivan
> models, Chrysler is watching its share of the critical segment plunge.
> Together, sales of its two models have dropped a whopping 12 percent since
> they were updated, last year, notes a report in today's Detroit Free
> Press.
>
> Why is the proverbial $64 question. The Michigan maker would prefer to put
> the blame on its move to scale back low-profit daily rental and other
> fleet sales, as well as the decision to abandon the short-wheelbase
> version of the Town & Country and Caravan models.
>
> Perhaps, but there are other factors at play, analysts and observers tell
> TheCarConnection.com. For one thing, Chrysler has been taking hits for
> quality snafus, notably in the April issue of the influential Consumer
> Reports magazine. And it doesn't help that while General Motors and Ford
> have dropped out of the minivan race, key Asian competitors have only
> ramped up their attack on the segment.
>
> In a stunning surprise, Honda briefly overtook Chrysler on the sales
> charts, late in 2007, though the American maker retained the lead for the
> full year.
>
> It doesn't help that minivan sales, as a whole, have dipped by
> double-digit numbers for the last two years in a row. A Chrysler spokesman
> recently posted a review, on the company blog, insisting it's not time to
> "write off minivans," but increased foreign competition, along with the
> overall declining market, certainly is leading Chrysler officials to
> rethink their options.
>
> In recent months, Chrysler officials have announced plans to scale back
> their overall line-up, eliminating weak models like the PT Cruiser
> Convertible. And Vice Chairman Jim Press has asserted that a critical
> corporate goal is to better differentiate what are now look-alike products
> shared by divisions such as Chrysler and Dodge. Despite different
> accessories, that pretty well describes the Town & Country and Caravan
> minivans.
>
> For the time being, it seems, Chrysler will have to re-jig its marketing
> campaign to rebuild momentum for the struggling minivans, a move almost
> certain to be accompanied by hefty new incentives, during the upcoming
> Spring selling season.
>
> Longer-term, however, some observers, the Free Press noted, are wondering
> if Chrysler just might drop one of its current minivan offerings, opting
> to switch to a different, more youth-oriented "people move" design, in
> line with Ford's new Flex model. Which Chrysler model would go? The Dodge
> Caravan has traditionally been the high-volume package, but its sales are
> slipping, while the higher-priced Town & Country is faring unexpectedly
> well in the marketplace.
>
> One thing is clear, Chrysler can't afford to become an also-ran in the
> huge market segment it created, nearly a quarter century ago. But finding
> the key to a turnaround in the minivan market won't be easy.
>
>