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5 Things Chrysler Must Do to Survive – The Blueprint for their Future Success

hey guys so today i want to focus in on

the chrysler brand

a lot of you guys comment about chrysler

and i do find myself wondering

why are they doing so poorly these days

as well as what should they be doing to

fix their situation

so that's really the topic for

discussion for today i want to look at

where chrysler was in the past and their

past success

how they are currently doing with

respect to their sales and vehicle

lineup

and then look at what they should be

doing to improve their situation so

let's jump right into it

there's no doubt about it chrysler has

definitely seen better days

sales really picked up steam in the late

1990s but the early 2000s into the

daimler chrysler era

saw an explosion for the brand with tons

of growth and a peak of almost 650

000 sales in the calendar year of 2005.

things dipped down again near the

bankruptcy era around 2009 but then the

stales did steadily rise up again until

2015

to over 324 000. unfortunately

the brand barely clears a third of that

production today

as sales fell down another 23.49 percent

to just 126 971 vehicles produced

for 2019. the major reason for that

decline in sales is the reduction in

chrysler's lineup

throughout most of the 2000s they had

six to eight vehicles in their lineup

the 300 crossfire coupe pacifica or

aspen suv

pt cruiser sebring sedan town and

country minivan and more

but if you look at today's lineup if you

visit chrysler.com

they will show you four vehicles if you

press on the models however

they're just trying to appear bigger

than they are the 300 is the only

remaining car

while the pacifica is their other

vehicle the hybrid is still a pacifica

model

while the voyager is a bit of a

marketing scheme where they're just

keeping the old pacifica look

when the refresh pacifica comes out in

2021 calling it a voyager

and that's essentially going to be a

base model so chrysler just has about

two vehicles left in their small lineup

today

the brand has been called the

family-friendly people mover brand

as described by former ceo sergio

marchionne

so it's important to remember that going

forward in this video the future plans

do need to adhere to that goal

so now let's take a deeper look at the

current sales again in 2019 they sold

just over 126

000 cars across the whole brand that is

the worst sales total in decades

and apart from 2018 these are the worst

sales years ever

since the recession in 2009 where

chrysler still sold more

over 177 000 cars so this is becoming a

pretty dire situation for chrysler

and they are only able to remain

profitable due to the older platforms

that they are using

if we look at the chrysler 300 sales are

shrinking every single year

dropping down into the 40 thousands in

2018 and then it took another hit of

37.3 percent

down to 29 213 for 2019.

the longevity of this car is far from

assured and there have been rumors for

years about the car being cancelled

the large car market also dropped down

from 4.9 percent of the industry in 2010

to just 1.3 percent by 2019. the 300 is

still offered for 2020

but many dealerships are only getting a

couple of them if any and there's

quite a bit of incentives on them there

have been virtually zero changes since

the 2015 model year

and the platform is getting outdated and

less exciting by the day

so we will have to wait and see what

happens to the 300 but it's still here

for the time being

chrysler currently offers about five

models and they either come with the 3.6

liter v6

with between 292 to 300 horsepower or

the 5.7 liter v8 hemi

with 363 horsepower and 394 pound-feet

of torque

all-wheel drive is available on the v6

only and every model has an eight-speed

automatic

and the prices begin around twenty nine

thousand dollars u.s and rise up to over

forty two thousand

as for the pacifica sales they are

better but they still dropped seventeen

point four percent from a hundred and

eighteen thousand in 2018

to just under ninety eight thousand in

2019 chrysler started the us minivan

market in 1983

by launching the dodge caravan and

plymouth voyager and the minivan segment

was booming by 2005

selling over 1.2 million vehicles but by

2019 it's down to just four hundred

thousand vehicles

under three percent of the auto industry

market share so this is another

declining segment

but chrysler is still pushing their

pacifica but at least as more of the

competition abandoned the segment

chrysler can kind of sell more pacificas

so it could be a positive for them going

forward

they also have refreshed the car for

2021 so that's coming out soon

with a sporty and aggressive look a more

premium and luxurious interior

tons of new technology and all-wheel

drive for the first time on a pacifica

since 2004. there will be the 3.6 liter

v6 again

with 287 horsepower as the gas engine

and a 9-speed automatic

and also a hybrid model will carry over

as well with a dual motor e-flight

electrically variable transmission

and a modified version of the 3.6 liter

gas engine

giving 260 horsepower in total along

with an all-electric range of 30 miles

and a total range of 500 miles pricing

starts around 33

000 and will rise up to almost 50

thousand dollars for the best models

and as i mentioned the chrysler voyager

nameplate is returning for 2020 models

which is just a more affordable pacifica

it will still carry the old design

once the new 2021 pacificas are released

it has the same engine transmission and

body but it's just more bare bones with

less premium features

there will be an entry level model

costing 27 000

and then one up from that costing 30

000. so knowing all that

what does chrysler need to do to remain

relevant and turn around their brand

i've got five reasons that we're going

to get into right now

so the first thing to do is revamp the

car and increase the advertising for the

300.

this is something that just doesn't make

any sense to me chrysler does not market

the 300 at all

nor do they give it any improvements

whatsoever say what you want about the

300

but it is an iconic vehicle for the

brand and it still sold well

over 50 000 units until 2017. the only

reason that there's talk of dying

is because chrysler themselves are

slowly killing it they took away the srt

model after 2014 for north america

even though it exists in other markets

globally and have not revamped

any exterior or interior features in

five years only adding very small

packages here and there

the charger and challengers still ride

on the same platform and they still sell

like hotcakes

due to their fun and desirable additions

you got hellcats

wide bodies custom stripes and wheels

blacked out body pieces

and a lot more all straight from the

factory if dodge sold the same charger

since 2015

without adding any of those improvements

or marketing the vehicle

it would probably be dying as well so

chrysler needs to add something to the

300

change the trim levels create a stir by

reintroducing the srt model

or partner up with a big celebrity to

promote the vehicle

we all see the power of social media on

youtube where a lot of vehicles like the

hellcats get endless attention

so chrysler needs to get some of that

attention onto their 300

and as for the older platform so what

just ride that out since it's already a

golden goose or a cash cow if you call

it

and until you have the new platform for

the charger and challenger

which is expected after 2023 then you

can introduce a new 300 alongside those

vehicles

or decide to cancel it at that point the

second thing chrysler needs to do is

bring back more vehicles

obviously sales are lower with just the

two vehicles in the lineup so chrysler

simply needs more

if they don't add more vehicles to the

lineup the brand will slowly die and

eventually end up with probably just the

pacifica but that won't be an issue if

more money is invested into chrysler

they should be looking to add a midsize

chrysler crossover to replace the dodge

journey

which makes perfect sense as dodge

focuses on more performance instead

the ongoing merger with group psa to be

completed in early 2021

also gives chrysler more vehicle options

that can align with their people mover

brand

opal's got the widely popular corsa

super mini

which sells over 220 000 units a year in

europe

there's also the crossland x and grand

land x suvs

peugeot also has some nice hatchbacks

like the 208

as well as the 3008 and 5008 suvs

now i understand that these are not

directly suited for north america

because their power trains are slow as

balls for what we're used to

but if chrysler could throw say the 3.6

liter pentastar v6 in there

or the pacifica's hybrid system i

believe these vehicles could work as

they look great

and they would fit in with chrysler's

classy style but also carry a bunch of

people around

to fit the brand regime so they should

be looking to add a crossover

a bigger suv and maybe a smaller

hatchback as well

i will say though that these vehicles

would only be a success if they add

value within the existing fca lineup

so they would need to be different than

other models that dodge or jeep might

already offer

the third strategy chrysler can use is

to leverage their brand history

by reviving an old nameplate and they've

got a lot to choose from no matter what

vehicle type

200 aspen crossfire delta

neon town and country epsilon voyager

heck even the pt cruiser not only would

a new vehicle create excitement

but reviving one of these names would

generate a ton of attention as there are

millions of people who already know the

name

or have owned the car in the past even

if you weren't interested in buying the

new car

i'm sure many of you would still check

it out to see what it's all about

because i know i would

next thing on my list today is for

chrysler to leverage the merger with

group psa

psa ceo carlos tavares had established a

10-year goal

of reintroducing peugeot and citroen to

the u.s market in 2016

so the merger could open up some more

opportunities for chrysler in this

regard

down the road and it would make sense

for psa to bring over their peugeots

and rebrand them as chryslers to further

explain i have a quote from john mcelroy

who is the host of autoline

and he says i imagine peugeot would like

to export some of its vehicles to the us

and brand them as chryslers

while carlos tavares wanted to relaunch

the peugeot brand in the us

why do it now when he would compete

against the part of his own company and

why spend hundreds of millions in

advertising to try and establish a brand

name

that americans can't pronounce so his

answer is to simply rebrand peugeot

as chryslers and that will help out both

companies and to me it totally makes

sense to keep the chrysler

brand around but maybe infuse some new

to us peugeots in there

ones that might fit the people moving

brand positioning that chrysler is going

for

like we already talked about like the

208 508

some of those smaller cars or some of

the suvs now the final reason may not

appeal to the hardcore

car and chrysler enthusiasts but it is a

realistic need going forward so i

figured i should talk about it

and that would be the electrification

and future mobility concepts

something that both chrysler and fca as

a whole are far far behind their

competitors

former ceo sergio marchionne was

short-sighted and seeing no short-term

profit in these developments

and he just preferred to continue to

sell suvs pickups and crossovers at a

big profit

as long as the oil prices remained low

however now is the time to turn chrysler

into a more innovative brand like they

used to

and invest in new technology for the

future so they've already got the

pacifica plug-in hybrid electric vehicle

they already supply waymo with pacifica

models for self-driving testing

so that is a great start and again

chrysler can also use psa's

electrification technology in their

vehicles as well

overall this could accomplish a brand

differentiation strategy

where again chrysler is building on

their people-mover status

by moving these people but now in a more

environmentally friendly way

and focusing more on electric and hybrid

suvs and cuvs

allowing chrysler to become a true

innovator once again so to conclude i

know chrysler has slipped from the top

of our minds when we think of new

vehicles here in north america

but i still believe there is time to

save and revive this historic brand as

we've discussed

i totally think it's still possible too

but only if stellantis is willing to

commit the time and resources to doing

so

as fiat did not seem to invest it in

that regard

so that's the end of this video there's

a whole lot on the table that i laid out

for you guys

what do you make of all the information

do you think chrysler will last for a

while and turn things around

or are they entering their final days

can they be saved or are they doomed

i'm curious to hear your thoughts i know

that was a ton of information but

hopefully you were able to follow along

okay

i always try to organize things as best

as i could so thanks for watching

make sure to like and subscribe for more

mopar content and i'll see you guys in

the next video

you