Chrysler divides its forces, or something.

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john250

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http://news.yahoo.com/s/nm/20091005/bs_ ... er_brand_1

I think this might make sense from a regulatory angle in ways which are beyond me--although they might involve CAFE (corp avg fuel economy) calculations.
Or is the new management (Fiat) just trying to push trucks (and truck revenue) out of sight? Or what?
I wonder how this impacts the product line-- are the trucks going to be orphaned?
Fiat has failed in this market a couple of times selling the same cars they sell in Europe. I don't see what this decision gains?
 
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john250

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I hope you paid your taxes. Fiat got a ton of money to bring their expertise and their fuel efficient cars to America. Separating the business cars/trucks has to make sense to someone smarter than me?
On those rare occasions when Chrysler was successful over the last half century they sold a lot of big motor cars and trucks.
 

1982vett

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john250":glidgmeo said:
I hope you paid your taxes. Fiat got a ton of money to bring their expertise and their fuel efficient cars to America. Separating the business cars/trucks has to make sense to someone smarter than me?
On those rare occasions when Chrysler was successful over the last half century they sold a lot of big motor cars and trucks.
Successful going bankrupt and getting to hang around. Saved by government loans in 1979, Daimler tried absorbing it and spit it back up. Cerberus took a whack at it and beaned itself. Now it is Fiats turn to try.

A pig is a pig is a pig.... :p
 

DiamondSCattleCo

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1982vett":15owgnl3 said:
A pig is a pig is a pig, no matter how you paint it up.

Ah spoken by someone who drives an inferior off-brand truck. Perhaps we should mention that the other Big Three have all had assistance at one time or another in their histories?

:lol2:

Anyway, before this turns into another brand war thread, I can probably explain whats going on.

Dodge trucks have consistently been a jewel in Chrysler's crown, very rarely losing money, and most often at the head of the "most profitable vehicles list" both in the Chrysler lineup and the overall automotive segment. Dodge trucks, until recently, have had very little R&D expenditure to recover, due to their bare bones approach, and often show lower warranty costs than other lineups, again due to their bare bones approach to design.

So what you ask? When Chrysler was having trouble, and looking at selling bits and pieces of the company, Dodge trucks would have been difficult to spin off. Concepts, designs and badging could have been sold, but that was about all. Their alliance with Cummins would have been gone, as would any of the tooling in the factories. Their design staff was shared with other areas of Chrysler, so even splitting employees would have been difficult.

As a separate entity, like Jeep, Dodge Trucks could be marketable as an entire entity, including entire factories, their tooling, R&D and staff. I'm sure Fiat has recognized this, and being primarily a car company, should Chrysler continue to have financial difficulties, the Dodge Truck lineup would be among the first to sold off for cash injection.

And sell it would. In a heartbeat.

Just to add to a brand warfare thread, quite likely before Ford or Chevy trucks would sell. :D

On a side note: 1982Vette, you should really do some reading about the Daimler/Chrysler merger and the subsequent sale to Cerberus, beyond what you can read on the Chevy or Ford forums. Heading into the merger, Chrysler had massive cash reserves, well beyond what any other manufacturer (including Toy) had. Daimler wanted those reserves to help their own struggling cash situation. They got them, allowed the company (that was currently on a high note with the release of several best selling models) to stagnate, and then sold them off (sans the massive reserves) during the middle of a economic crisis to a company who had no experience running an automotive company, but rather a company who specialized in breaking up entities. There was no "spitting back up" or "getting beaned". Daimler made out like bandits. Had Cerberus not misjudged the economic climate at the time, they would have made out like bandits (I GUARANTEE you they would have sold Jeep and spun off Dodge trucks, just like they spun off Viper).

Rod
 

1982vett

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Rod, I didn't attack the product. Never mentioned a product and still haven't. That is yet another opinion. I attacked the management. When management of a company has/had products that sell well and can only manage to make money for corporate raiders......... Here we go again. Who is going to be left holding the bag on this one?

Who knows, maybe Fiat can finagle it. And it is only my opinion. Smells like a ... Squeals like a... It's a... :lol
 
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john250

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I think the truck division can stand on its' own, depending on how their products are regulated for fuel economy.
Is this a preliminary move toward selling the truck division to an independent company?
Fiat's track record in N America is not good. Dodge trucks deserve to go off on their own. I drive a Ford, but plenty of folks around here swear by (or at) the Rams. Cummins engine works are 45 miles from here, so that might be a factor.
 

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