Plug pulled on UK Challenger
 

So here is the reason for not going to Europe.

Plug pulled on UK Challenger

Dodge's retro Challenger won't make it across the pond
15th September 2007

There’s disappointment ahead for UK muscle car fans – the next Dodge Challenger isn’t coming here after all. The new owner of the US brand, Cerberus Capital Management, has decided to ditch plans for transatlantic sales.

The retro-style coupé will be sold only in North America – and in strictly limited numbers. The decision overturns plans drawn up by previous owner Chrysler to export the Challenger to the UK. Sources at Dodge blame cost-cutting for the turnaround, as the marque is coming to terms with losses last year of a staggering £750million.
It’s not all bad news for UK fans, though. If you can live with left-hand drive, personal imports are still a possibility. Although the 2008 model, inspired by the 1970 original, is still officially at the concept stage, a production car is to be unveiled at the Chicago Motor Show in February, and US sales are set to begin shortly afterwards.

Under the long bonnet lies a 6.4-litre V8 engine pushing out a massive 505bhp. However, capacity may be increased to 7.0 litres in order to compete with Chevrolet’s Corvette and Ford’s Mustang.

RE: Plug pulled on UK Challenger
 

Someone needs to explain to these people that you have to spend money to make money. Chrysler has cost cut about all they could cost cut, now they need to reinvest to sell these models elsewhere. Now why are they making a reverence to the Corvette? Perhaps the writer meant the Camaro because the Challenger is not a Corvette competitor.

RE: Plug pulled on UK Challenger
 

I honestly didn't see the UK clamoring for this type of car anyway, it really isn't their "cup of tea", so to speak, save for perhaps a very select few.

I still get nervous when I see this "produced in very limited numbers", though - such consequences have been discussed to death here... guess we'll see what really happens when the car is (finally) introduced.

RE: Plug pulled on UK Challenger
 

Perhaps not for the UK, but the Aussies on the other hand would love a car like this. They love muscle cars.

RE: Plug pulled on UK Challenger
 

They do, they do. They are more car crazy than we are. And thats saying alot. Thats where I would move if I can't live here..... Mate!

RE: Plug pulled on UK Challenger
 

I would not lose all hope for them. If traction in the U.S. holds then the new company might feel more comfortable expanding to other markets. Let's face it...they have to succeed here 1st.

RE: Plug pulled on UK Challenger
 

The only thing is they are passing up on a golden opportunity by ignoring the Aussies. The Australian market is potentially a more safe market than even the U.S., they need to build it for both countries, this will help the economies of scale for the things that can be shared between the two. We are now just seeing what amazing cars that GM and Ford are offering over there, just think what could happen if Chrysler would start to be more competitive over there as well. I think that the chances of the Challenger surviving more than one generation will be drastically improved if they decide to sell it over there as well. I want Chrysler to become addicted to Australian sales of muscle cars so then they will not move away from them no matter who is controlling the company.

RE: Plug pulled on UK Challenger
 

Let me apply some simple math to Australia & take nothing away from their general love for American muscle. Let's assume these numbers are accurate (I just googled it)

Population:Australia
20,090,437 (July 2005 est.)
Age structure:
0-14 years: 19.8% (male:2,038,809; female:1,943,563)
15-64 years: 67.2% (male:6,815,600; female:6,695,189)
65 years and over: 12.9% (male:1,145,274; female:1,452,002) (2005)

Population:USA
295,734,134 (July 2005 est.)
Age structure:
0-14 years: 20.6% (male:31,095,725; female:29,703,997)
15-64 years: 67% (male:98,914,382; female:99,324,126)
65 years and over: 12.4% (male:15,298,676; female:21,397,228) (2005)

Obviously the market opportunity is well over 10 times that of Australia. Hey, I'd love the whole world to get one but let's start here and build the base.

RE: Plug pulled on UK Challenger
 

There is more to this than just population, awsure. You also have to remember the audience. Detroit currently holds only around 50% of the U.S. market and it is continuing to drop. The American's love for muscle cars is very seasonal; however, the Australian's love for American muscle is pretty consistent. Holden had V8s cars consistently during the fuel crisis eras and Ford was bring V8 model cars in Australia when they were too busy getting rid of them over here and unlike Ford's V8 car offerings besides the Mustang (the Crown Vic) these were actually performance orientated. Plus, we can thank the Australians for the fact that we even had the 04-06 GTO and the upcoming G8 and Camaro as these are on the same line as the Holden Commodore.

Correct me if I am wrong, but is the real reason why you don't want them to sell it in Australia or anywhere else is you are concerned that it will drive the price up on the Challenger at home? I would say that if they sell this internationally, it will lower the chance that it will be a limited production run and help keep the price lower.

There are countries that it might not make sense to sell this kind of car equipped like this, in like say Russia, but I belive if they were to offer this car in Europe equipped with the right type of engines, it could potentially succeed. In the European market, it would naturally need a diesel offering as they like diesels. It might make sense to keep the Challenger in Europe to be a limited production model, but I believe if they sell it in these other countries, it will help the chances of the Challenger being an affordable mainstream car.

RE: Plug pulled on UK Challenger
 

No I do not believe it would raise the price to sell more units internationally...just the opposite in fact. Overall, the more units made I think the lower the overall unit cost as economies of scale kick in with regard to the parts supplied most directly. I agree with you that a broader base would keep prices down.

You mention the audience & that is precisely my point. I just can't see a major reason to go after Australia strictly on the numbers & you must admit the corporation is keenly aware of demographics. Not necessarily how many cars will folks buy because you cannot guarantee that. You can however look at how many folks are there in the right age group, gender, economic situation, etc... likely to buy the car. You start to peel apart the Australia market numbers & compare to the U.S. it's a no-brainer where to begin.

You are a marketing major right? Let's say you are the marketing director for this new company and put yourself in their shoes right now. You have to make some careful decisions which unfortunately sometimes means your head overrules your heart and caution wins out. I just think wise money says let's prove the car in America and then move to other foreign lands.

I want the Aussies to get Challengers but I understand the decision. It's sensible.

RE: Plug pulled on UK Challenger
 

I think stating from the beginning "We are not going to sell to this particular market" is myopic from a marketing standpoint. What they should do is state in the affirmative "We are initially going to focus on this market and we're currently working the numbers on markets X,Y and Z".

No one can claim to be Nostradomus, and make clairvoyant statements excluding a particulate market. This deflates buzz in that market and kills any potential to compete there in the future. Tease. Work the break even point in a particular market. If you hit your numbers in your primary market, create some mechanism to take orders with the widely public and conspicuous statement that "If we receive this threshold of orders in Market X, we will make good on those orders". A deposit with voucher through a dealer to a general interest bearing fund would be made (this would reduce reluctance) available to secure legally binding intents to purchase thus allowing a relatively risk free approach to allow the market to announce it's willingness to buy in sufficient numbers to make it worth the mfgr's time and money to sell in that market.

If they don't do it this way now somewhere, they should consider it, who know's Germans may have a high hard one for this car. Cerberus could see if the market would bear it w/ little risk w/ this approach AND wouldn't that be sweet. American (pseudo because of Canadian production) Chrslers outselling Daimler in Germany. Delicious irony.

RE: Plug pulled on UK Challenger
 

Okay, I'm glad we see eye-to-eye on the economies of scale stand point and that your not against selling it do to fears of it hurting our supply of Challengers. I just wanted to be sure about that.

Now for your questions and points, I do not have all the insider information and cannot do a full blown marketing research job on the Australian market. Heck, I barely have enough time in the day to respond to this. Why should we first test it over here? Who's to say that if it flops over here that it won't be successful over there or vice versa? Unlike Chrysler's management, I do not believe in using General McClellan strategies (have the capability to win and pull back everytime because they can't handle the thought of making a mistake and the price that goes along with it). I think Chrysler needs to realize what they have and use it for a change because years of holding back has limited their success and its starting to eat away at them.

If I had things my way from the beginning, I would produce about 150K units for the 2008 model and would have started selling it last month. Now I would keep 100K units dedicated to the North American market (Canada, U.S., and Mexico) and divided them according to what the research I had on what the likely size of the audience might be. I would then sell the other 50K units internationally. Now just because I would sell them internationally, does not mean they will all be the same. I would sell the international models (especially ones sold in Europe and possibly Canada) with diesels and AWD systems for options for those who do not care as much about the gas engines and the RWD only heritage as we do over here. People in Europe will be more likely to want to buy it if it has the fuel efficiency they desire along with the looks. Also, the international packaging would probably not be quite as luxury orientated as it is over here. For countries like Australia, I would not make leather standard on any model (except the SRT models perhaps) and leave out other luxuries that they are less likely to care about over pricing. This would help to make it more affordable and better fit the demongraphics.

Having this set up would provide Chrysler with a chance to test these new markets to see if they will be popular or not. It is better to actually test it in those countries than to go purely off of demographics. Not every country will have equal sales by any extent of the imagination, that is why I planned the bulk to be sold in this area.

Also another problem with waiting a year is they will be selling a product that has already been out on the