Old 05-13-2008, 12:10 PM
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RLSH700
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Default RE: Chrysler Cuts SUV to Invest in Compact, Press Says (Update2)


ORIGINAL: DSkippy

You're absolutely right. Achieving better economies of scale is the only thing that would make sense for them to dilute sales of a premium product like the Hemi, but even that is a little hinky.

I mean Ford owns (they still own right?) Cummins, but that's a side business which they treat(ed) like a cash cow. You don't go from being an auto producer to just an engine producer...

It seems to me, they're looking for path of least resistance as opposed to the best path. Don't get it.


Well, in the case of the Hemi, I don't think they need to do that because the Hemi from what I have read (unlike the first Hemi small block or the 426 Hemi) is actually cheaper to build than the V8s it replaced and cheaper than the 4.7L. I can understand them doing this with the 4.7L since it isn't used that much, but the Hemi does not make sense nor does it when they sell so many Rams that it could have the negative effect of over doing production making it inefficient. What I'm saying is Chrysler might want to consider this only for cars like the Viper that they are having trouble making it profitable due to such low demand and a high price tag to help lower the price tag as Ferrari is doing with one of their upcoming cars that is a Maserati GranTurismo underneath. If Chrysler could find some one to help cover the costs of the Viper, then it might be a more profitable venture.

I'm not sure what the situation is there with Ford, but it isn't the way Ford fans would like it to be. Chrysler at this point isn't going to be an engine producer, I think they think they can put their money and effort into what they are currently good at and tempting manufactures who are not good at these markets and make a trade. The problem is these other manufactures are not good at the things they are getting in return.

I will say it is probably for the best that Chrysler does not get a twin of this model. The Pacifica was a failure and I doubt they would do this market correctly anyways for Chrysler. Chrysler has too many models if you ask me. Plus the short wheel base T&C/Voyager under the Chrysler badge never was that successful. The Journey is only needed by Dodge as only the Caravan had a real market to replace. The fact is they need to build their own compact that can compete with the Corolla and Civic on fuel economy, and the EVO in performance at the top of the line.
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