Has Fiat put the kiss of death on its Chrysler subsidiary? From Eric Peters, on a guest post at theburningplatform.com:
Fiat has put a hit out on Chrysler. Kissed both cheeks – then one right on the lips.
Tonight, you sleep with the fishes.
Well, maybe not tonight.
But about three years from now.
2020.
It will be that long – at least – until Fiat commits any cash to a major redesign of Chrysler’s aging rear-drive 300 sedan.
Two “sources” within the Italian automotive combine told the trade publication Automotive News this evil news – sotto voce – last week.
See here.
Which means the same evil news for Dodge’s also aging Charger sedan and Challenger coupe.
Which is really bad news, because all share a common “platform” – the industry-speak term for a chassis/frame. All three received their last major update back in 2011 – already six years in the rearview. By 2020, they will have been basically the same car for nearly 10 years.
Which means, they probably aren’t going to be updated. Which means it is likely they are going to be cancelled.
No car company leaves a car to rot on the vine like this unless they’ve already decided there is no future for that car.
In which case, there appears to be no future for Chrysler.
As of 2017, it has just two models to offer buyers and only of them – the Pacifica minivan – is remotely new. The 200 sedan has already been “hit” – cancelled prematurely after less than three years on the market (and despite selling well; see here for more about that).
Which leaves the 300.
It’s a death sentence for Chrysler.
Almost nothing to sell – and what they have to sell is nothing new. Not next year. Not the year after that. Or the next year.
By which time, you should be able to get a really good deal on a “new” 2018 Chrysler 300 or Dodge Charger or Challenger.
But why?
These are not unpopular cars. Of course, the same was true of the 200. But the 300 and Charger and Challenger are the only cars still available with rear-wheel-drive and V8 power at a price point average Americans can afford.
And there you have your answer.
It’s not Fiat that’s putting the cement shoes on Chrysler.
It’s Uncle.
The “contract” being the federal government’s Corporate Average Fuel Efficiency (CAFE) mandates.
These are set to go up to a demented 50-plus MPG – unless Trump intervenes – by model year 2025. And the only way V8 (and V6) powered large sedans and coupes like the 300, Charger and Challenger are going to come within tire iron-throwing distance of 50-something MPG is by riding on a flatbed.
One powered by a Prius.
It’s not surprising that Fiat – a predominantly European cartel that specializes in tiny, high-economy cars, isn’t going to commit the funds to extend the production run of big, not-so-economical cars which will drag its overall CAFE numbers down like seawater did the Titanic. Plus they will be a hard sell to average Americans on account of the “gas guzzer” fines EPA will hit the company with, which will be tacked onto the sticker price of the offending vehicles. Which means they’d sell fewer.
This will cost Fiat money.
Which matters to a car company.
To continue reading: Chrysler Kaput
