Bailout Blues: Can Fiat keep Chrysler’s lights on to see through its Five Year Plan?

We waited five months and seven hours for this?

After an all-day press conference, Chrysler’s new Italian caretakers, Fiat, came through with little—if anything—that makes me change my mind that this enterprise isn’t going to make it to 2012, the year when reskinned Fiats will start selling in Chrysler showrooms. Maybe.

Except for the no-news of any plans for North American Alfa Romeos, the product plan varies little than what was leaked last week.

The Plan calls for deep-sixing next year the PT Cruiser and Jeep Commander, and the Dodge Dakota in 2011—something consumers have already effectively done, what with Chrysler’s U.S. sales off 30 per cent last month.

But the cars that no one is buying today—like the Sebring, Avenger, Caliber, etc.—will be gathering dust in Chrysler dealerships for another three years until their respective Fiat replacements come to the rescue.

So how in the name of Lee Iacocca does Fiat keep Chrysler in business until then?

The reality is, Chrysler is still in deep doo-doo. It’s still stuck trying to sell the low-quality, unattractive and getting-older-by-the-day products that currently no one’s buying.

Except for the niche Fiat 500 (that’s coming next year as a Chrysler) consumers will have no compelling reason to visit a Chrysler/Dodge/Jeep showrooms until 2012, expect for refreshed 300 and Charger sedans and a new Grand Cherokee and Durango—not exactly the types of products that are selling, n’est pas?

And then what? By then, Chrysler will be even further behind the competition.

Rivals will have jumped into the small car market (Ford Fiesta, Focus, C-Max, Mazda2, Chevrolet Spark, Aveo, Cruze, etc.) that the reskinned Fiats hope to compete in.

Even if customers suddenly flock to the Chrysler-badged Fiats, realistically, it will take at least a full generation of product (eight years) to win people back.

So, does Fiat have deep enough pockets to keep Chrysler afloat until 2020?

Here’s a hint: Google “Renault” and “AMC” for your answer.

Comments

[Randy]

"The reality is, Chrysler is still in deep doo-doo."

That pretty much sums it up. I think it will take a miracle for Chrysler to make it to 2012. The competition is overwhelming, so much so that Chrysler doesn't stand a chance IMO.

[Larry]

The Fiat 500 is NOT going to be badged as a Chrysler. It will be sold as the Fiat 500 in Chrysler showrooms. I don't know why you keep saying this, because it simply is not true.

As for 'reskinned Fiats' in the rest of the lineup, it's more a case of existing Chrysler products being improved with Fiat technology (think more fuel-efficient Jeeps) and new Chrysler vehicles being based on more advanced Fiat platforms (finally small and medium-sized Chryslers you can take seriously).

The Renault/AMC comparison is way off. AMC cars sorely needed updates and ChryCo was mostly interested in Jeep; Renault cars were not a good fit for the US at the time. Chrysler ended up creating the Eagle brand to consolidate the mess with some Mitsubishi product, then killing it off because they once again had one brand too many.

Personally, I think Fiat ownership of Chrysler is payback for:
-killing off the Rootes group in the '70s along with Simca (originally a rebadger of Fiats!)
-suddenly withdrawing from Australia after 30 years
-various Chrysler Europe misdeeds (Google 'Barreiros' and 'Dodge Dart')
-the Chrysler TC by Maserati (now owned by Fiat!)

[Larry]

Also, the phrase is "n'est-ce pas", not "n'est pas".

[Cardawg]

Who is John Leblanc,not what I would consider a reliable source for any judgement or knowledge of the Automotive Industry.
I've never heard of him.