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Chrysler Announces New Ram Brand; Reorganizes Executives

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Chrysler has formally announced what has been rumored for weeks. The Dodge brand has been split into two. It will now consist of the Dodge Ram truck brand and the Dodge car brand each with its own CEO. Well known designer Ralph Gilles takes over as the head of the Dodge car brand while Chrysler marketing executive Fred Diaz Jr. will head up the Dodge truck brand. The former head of Dodge Mike Accavitti resigned. 

There were also a few other executive changes announced today. Oliver Francois is the new CEO of the Chrysler brand replacing Peter Fong. Francois currently heads up Fiat's Lancia brand in Europe and will retain that position along with worldwide responsibility for Dodge and Chrysler marketing. And finally, Joeseph Veltri, a long-time marketing executive has been named head of product planning.

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12 Comments

rsholland says:

08:42 AM, 10/ 5/09

Splitting the Dodge brand tells me that Dodge cars is on the way out. Maybe not now, but sometime in the not-too-distant future it will be a goner. This split will just make it easier to do so.

xprojected says:

09:01 AM, 10/ 5/09

Yep, there's a definite strategy here, and it's to remove redundant Chrysler and Dodge cars (and minivans). I wonder if any small-scale coachbuilder is still interested in taking the Viper and/or Challenger lines, however.

rsholland says:

09:39 AM, 10/ 5/09

The Viper and Challenger could be re-branded as Chryslers. In fact, the Viper in Europe is already badged a Chrysler.

Speaking of Europe, word has it that the Dodge brand will disappear over there first.

dg0472 says:

10:30 AM, 10/ 5/09

I'm confused. I was under the impression that the Dodge name would be removed from the trucks. Is that not going to happen?

xprojected says:

10:55 AM, 10/ 5/09

It's true that some Dodges are rebranded in Europe as Chryslers, but I would find it odd if they did it here, especially with the Viper and Challenger, given that the Dodge brand has a reputation for both trucks and performance cars. IMHO, they'd be better off scrapping the Chrysler brand, here in North America at least - especially with Dodges outselling Chryslers 4 to 1 in September.

kcram says:

03:59 PM, 10/ 5/09

I don't see it so much as killing off Dodge cars, but a definite refocusing. Here's what you'll probably see very soon:

* Dodge - sporty and family cars (Charger, Challenger, Viper, Avenger replacement, Caravan, Journey)
* Ram - Ram pickup, Dakota, Fiat/Iveco-sourced vans
* Chrysler - 300, 200, T&C
* Fiat - small [A/B/C class] economy cars
* Jeep - Grand Cherokee, Wrangler, Liberty, Patriot

Marchionne has already noted that the 500 will definitely be badged as a Fiat, but it's possible the B/C cars could be Dodges.

The PT Cruiser, Caliber, Compass, Nitro, and Commander won't survive. The only overlapping vehicles will be the 300/Charger and theCaravan/T&C, with clearly defined markets. The 200 may be a Chrysler platform taking on the CTS, while the Avenger will likely be a large Fiat [D class] platform taking on the mainstream family sedans with a sportier edge (a la the defunct Pontiac G6).

That's just my opinion, I could be wrong. --Dennis Miller

estreka says:

04:28 PM, 10/ 5/09

Does a truck brand really need its own exec staff?

rsholland says:

05:29 PM, 10/ 5/09

KC, if the Dodge car brand doesn't gain traction (sorry for the pun), it will make it easier for Chrysler to kill off that brand, yet at the same time not hurt the truck brand. That's all I'm saying. Of course Chrysler officials will never admit to that. They're putting as positive a spin on this as possible.

Having said that, I'd be very surprised if the Dodge car brand will still be around a decade from now.

flicmod says:

05:48 AM, 10/ 6/09

Originally, I thought that splitting Ram from Dodge was a good thing because it'd open to door to either get rid of either the Chrysler or Dodge brand. Plain and simple: one of those two have to go. There is so much product overlap and so little difference in material and build quality that it doesn't justify having both brands.

But now, as it looks like Dodge will stay on for at least awhile, I'm not so sure this is a good idea. Chrysler LLC is effectively turning into GM. Ram brand = GMC. Jeep = Hummer. Dodge = Chevy. Chrysler = Buick (?). Then Marchionne wants to bring over Fiat as a brand too? It just doesn't make any sense.

Entering into bankruptcy was supposed to alleviate the company of unnecessary things like duplicate brands and over-production and overlapping product. But, as we all know, what Chrysler entered into was bankruptcy-lite. No liquidity happened. They were merely sold to foreign hands that are in charge of a company that hasn't seen our shores in decades.

But I'm sure they know what they're doing.......

kcram says:

11:21 AM, 10/ 6/09

Bob, I don't dismiss the notion that this reorganization makes it easy to sell off the profitable truck lines or ditch he car brands. That is always a possibility given the state of the industry and economy. I think the Dodge name has a little more cache than Chrysler, though... the 300 is the Chrysler brand's only recent success.


flic, for now,the Ram brand will still carry the Dodge name, although it will be minimized in marketing. One thing that the new truck line will be able to say that GMC can't is, the Ram line is a far wider range than the GM truck line. Remember, GM just dumped their medium duty trucks, leaving them with nothing stronger than class 3. The Ram is already available in classes 4 and 5, and the Fiat/Iveco vans will bolster their commercial presence. Add in the fact that GM will lose 4 months of production (and sales) while the Duramax is retooled to meet 2010 emissions, and Ford and Dodge will leave them in the dust with the HD light truck market.

flicmod says:

12:33 PM, 10/ 6/09

kcram,

If Ram is still going to carry the Dodge name, then what's the point in separating the divisions?

Based on the info that I've heard (which, admittedly, isn't much), I see the reality of it either one of two ways:

1) Ram becomes it's own division with its own marketing/design/etc departments and they try to distance themselves from Dodge in every way, shape, and form. But, this would relegate them to a quasi-GMC status. Granted what you said about the Class 4 and 5 trucks.

or

2) As you say, Ram keeps the Dodge name, but gets further support as a "separate" division. This wouldn't solve much, though, because they'd effectively be adding staff to take on the "separate division roles", but still be (in the public's eyes) apart of Dodge.

So, it's either a division only in name, or it's an expansion of bureaucracy in Chrysler LLC. Either way I don't see it working out for them. Something's gotta give. And it's my opinion that the LLC and Fiat should be hacking models and brands instead of splitting and/or creating new ones.

rsholland says:

05:16 AM, 10/ 7/09

This link lends more credence to my theory that by creating a new Ram truck brand, it will become easier to ditch the Dodge car brand if push-comes-to-shove.

http://www.freep.com/article/20091006/BUSINESS01/910060315/1331/Business01/Fiat-CEO-s-next-step-to-a-new-Chrysler

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