This page is being updated as new information is revealed.
Chrysler's five year plan is being unveiled, with a limited-entry webcast on Chrysler LLC's corporate web site, constant updates at Automotive News, and frequent updates here at allpar.com. The plan will take around five hours to describe. The agenda: Dodge Brand, Quality, Product Development, Powertrain, RAM Trucks, Jeep, Manufacturing, Purchasing, Dealers, Canada, Mexico, International, Mopar, Chrysler Brand, Product Plan, Financial Plan Review, Summary, Q&A, Closing
KEY NOTES
* Journey, Caravan, Avenger: new engine, new interiors, exterior refreshing
* 2014: all new Grand Caravan
* New C-sedan, B-hatch, D-car, 7-passenger crossover
* Repackaging around lifestyles rather than ... whatever they were using before
* Possibly, new Viper for 2013/2014
* Quality improvements will continue and extend to dealer service
Chrysler Engineering will be expanded from June 2009 to July 2010, with contract workers doubled, a 7% increase in direct employees, and a doubling of purchased engineering services.
Chrysler itself will be a global center of expertise for hybrid and large displacement engines. Fiat, which has partnered with Cummins in the past, will be a global center of excellence for diesels.
Engines. Fiat technologies, including smaller turbo engines, MultiAir, start/stop systems, and direct injection will be added rapidly. The World Engines (2.0 and 2.4 liters) will gain MultiAir and direct injection, as will the Pentastar V6. Fiat’s dual-clutch transmission will be used by Chrysler. Pentastar V6 will launch in the second quarter of 2010. A twin turbo version of the Pentastar V6 will be launched as will a single-turbo version. V8 efficiency will be increased.
Transmissions. The four speed automatic will be phased out, the six-speed improved, and the Fiat C635 dual clutch will be phased in progressively. New ZF axles will be made in Marysville starting in Q2 2010. New automatics for rear-drive cars are being sought.
Dodge. The plan is for a complete repackaging of all Dodge cars, with new options mixes, by the end of the fourth quarter of 2009. A complete overhaul of branding, marketing, positioning, and point of sale is to be completed by the end second quarter of 2010. The car and truck brands are being separated to “amplify the youthfulness of the Dodge brand.” Cars will have a base, mid, high, and sport level. SRT will continue as the “ultimate performance sport” level. Scott Kunselman, head of engineering, said Chrysler will more than double volume per platform by 2014.
Vehicle development (engineering). Future projects will use more resources up front, fewer at the end, and will bring vehicles to market within 16 months. A new benchmarking process establishes 320 functional measurements and benchmarks the best competition — similar to the pre-Daimler process but more detailed, with targets set and physical achievement confirmed as the project continues. Results will be confirmed by a new quality group representing the customer rather by the involved engineers. Gas mileage will be increased by cutting weight and improving aerodynamics (the Ram was cited for its best in class aerodynamics.) Time to market will be cut as the S0 build phase is dropped, due to the use of virtual tools and prototypes. More parallel activities will cut time, too. A disciplined design freeze should reduce time to market, as will early supplier involvement — a hallmark of Chrysler’s own renaissance of the 1990s.
Sharing. Increased sharing with Fiat will result in increased quality (due to use of tested components), decreased cost and time to market. The primary sharing will be in modules/systems, followed by powertrain (with V6 engines from Chrysler and four-cylinders from Fiat), and then by components. 20-30% of vehicle cost will be in model/brand differentiated components. Chrysler’s Powernet electrical architecture will be used for E-class vehicles, Fiat’s for C/D vehicles.
CATIA. Chrysler will start using a proprietary automated computer technology for structure optimization (it is currently using CATIA). Alternate materials such as high-strength steel, aluminum, and magnesium will be used for weight reduction.
Quality. Doug Betts said that Chrysler was not effectively organized, and that new launches had below average quality, with an overall inadequate rate of improvement. He did however note that action was taken starting in late 2007. Changing corporate monthly meetings from boardroom style to hands-on style started in March 2008 to show leaders the issues. Merging all quality functions into one organization was completed early this year. 200 people are now working together on one master plan. Internal metrics and targets were changed to more accurate figures, as of January 2008; cross-functional warranty reduction teams were set up by January 2008. Reliability fell in model-year 2007 but has recovered. 200 plant engineers were added to help with quality issues. Reliance on JD Power SSI/CSI based surveys has been replaced with the Customer Promoter Survey which is faster and has more clarity (as of January 2009).
New quality initiatives include improving quality of service parts (redesigning them to fix original issues), thereby reducing repeat repairs; fixing service issues by making parts more readily available, having more tools at the dealerships, and having technqiues to fix every problem, with new metrics; and improved human interactions at the dealer, with care standards, a score system, and better customer feedback.
New vehicle quality has been addressed with more rigorous testing starting with the 2009 Ram which has garnered better results from Consumer Reports; through better benchmarking and higher internal standards; and through investigation of the determinors of perceived quality. Quality design simulations are being done before physical models, with the ability to simulate real vehicles and lighting, allowing for the identification of perception issues (such as exposed hardware in the wheel-wells) before a prototype is built.
Future vehicles. Coming up in Q4 2010 will be revised Avenger, Journey, and Caravan. All will get a new interior and engine, refreshed exterior, and repackaging; lower noise and harshness levels, higher performance and gas mileage. Caravan will get best in class ride and handling, comfort, features, performance, and fuel economy. Charger will be all new and dramatically styled, with a class-leading interior, and best-in-class performance and gas mileage.
Branding will work around lifestyles, with groupings such as sweet/simple; fun/practical; uptown/luxury; thrill-seeker; cool/extrovert; and SRT, ultimate-performance.
Current Dodge cars will undergo a "fix the fundamentals" program, retuning the driving experiencing and adding technology for more efficiency and performance. Dodge will get a C-segment sedan, finally replacing the Neon; a B-segment hatchback, a new mid-sized sedan, and a seven-passenger crossover by 2015. The B-car would be from Fiat; the C (Neon-sized) and D (Avenger-sized) were not discussed in detail.
Ralph Gilles has praised Marchionne, saying he breathed new life into the company, raising the energy level. Board chair Kidder said Chrysler would gain true economies of scale.
The company plans to make Dodge more refined, but retain its appeal to younger people.
Chrysler had $5.7 billion in cash at end of September.
Original text
Expected long term features are replacement of all Chrysler small and midsized vehicles by 2013, consolidation of minivans to the Chrysler brand, refocusing of Dodge cars, expansion of Jeep despite the loss of the Patriot and Compass, integration of Fiat technologies into Chrysler and Chrysler technologies into Fiat, and use of Fiat brand names in the United States coupled with the loss of the slow-selling Chrysler and Dodge brands outside of the Americas.
Short-term features expected are renovation of the Sebring and Avenger, repositioning of the Compass, refreshing of the PT Cruiser, a last-minute re-engineering of the LX platform to eject the need for Mercedes components and to make the platform more suitable for Fiat use, as well as replacement of the World Engine with a Fiat four-cylinder range. Electric cars are expected to continue on their course, as are trucks.
Two vehicles whose fate has been questioned will presumably be discussed - the Chrysler 200C and Dodge Dakota. Both have been absent from leaks and mainstream speculation recently. The Jeep Scrambler could conceivably also have a place in Chrysler's future.
Long term, one major question for Mopar fans will be whether the influx of Fiats is temporary or permanent. Will Chrysler Engineering be restaffed and given more responsibility for designing mid-sized cars for the United States, and perhaps for localizing smaller cars as well? Will the large rear-drive cars be returned to the United States for primary engineering? Or will Chrysler be consolidated into an expanded Jeep, truck, and minivan engineering center? These questions should be answered later today.