Fresh out of bankruptcy, General Motors is looking to shed brands, selling off or closing four of its eight nameplates in an attempt to shrink toward profitability.
Fresh out of bankruptcy, Chrysler is looking to add brands.
We're not sure about the wisdom of this one.
Edmunds Inside Line reports, "Chrysler Group is likely to promote its Dodge Ram nameplate to a full brand, which will sell pickup trucks, vans and some SUVs as a marque in its own right." The move is expected to be part of a round of strategy changes that Chrysler's new owner, Fiat, will announce in mid-November.
The move, Autoblog explains, "Would free Dodge from rough-and-tumble heavy-duty products, leaving it to fend for itself in the compact, mid-size and performance segments - although it's destined to receive some help from Alfa Romeo in the form of joint product development." It meshes with earlier reports that Fiat plans to make Chrysler a luxury brand to compete with Cadillac and turn Dodge into a performance brand, losing its current muscle-car image in favor of cars with sportier driving dynamics. Jeep would remain the off-road-focused SUV brand it has always been.
There is risk in the decision. Inside Line notes, "Although it has scored some success, Dodge sales have fallen short of forecasts, and increased the promotional burden both for Chrysler and its dealer network." Spinning off Ram into its own brand would take away Dodge's only truly successful, iconic product - and we're not sure it can carry the sporty image Fiat has in mind.
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