Chrysler Brands to Aim Appeal at Specific Lifestyles

November 5, 2009 

Chrysler brands to aim appeal at specific lifestyles

BRYCE G. HOFFMAN

The Detroit News

Chrysler Group LLC outlined new strategies for its four vehicle brands Wednesday, aimed at recapturing lost market share by bringing new buyers into showrooms.

Dodge, which remains the nation's No. 3 brand by sales, will see its bad-boy image toned down, and its big trucks sold under a new standalone Ram brand. Dodge will get a "more mature" logo, and vehicles will focus on the "physics of fun," not macho design.

The Ram brand will inherit the old Dodge logo and much of its swagger, but will concentrate on "real truck customers," rather than urban wannabes who do not actually need the capabilities of a pickup. 

Jeep will eliminate the faux off-road Compass and return to its roots by offering trail-rated versions of every vehicle it sells. But it also will go after new customers by offering more fuel-efficient two-wheeldrive versions of those products as well. 

Finally, Fiat SpA hopes to recapture the Chrysler brand's lost glory by pushing it upmarket and making it a true luxury brand.

Analysts liked what they heard, but some also questioned whether such ambitious goals could be achieved.

"If Sergio Marchionne and his team deliver what they have promised, this Chrysler turnaround will replace the (Lee) Iacocca-driven comeback as the definitive business school case study," said Mike Niederquell, president of the Troy-based Quell Group, a marketing communications firm. "The company is building its future on clearly articulated and coherent brand strategies -- something Chrysler has lacked in the past."

Dodge will focus on cars and target specific customer psychographics, rather than demographics.

"All Dodge vehicles will represent lifestyles, not age groups or price classes," said brand president Ralph Gilles, who is also head of product design for all brands.

Gilles outlined six lifestyle-oriented areas Dodge will aim at with specific vehicles, including "sweet and simple," economy-oriented entry level products; "fun practical," more mainstream cars that emphasize driving dynamics and utility; and "cool extrovertive," which would include vehicles like the performance-minded Dodge Challenger.

"This seems to be a much softer approach," said George Peterson, president of AutoPacific Inc., a market research firm in Los Angeles. "Dodge has been much more in-your-face."

Ram will be all about trucks. In fact, Fred Diaz, president of the Ram brand, said the company is even considering getting into the commercial 18-wheeler market -- a move analysts dismissed as unrealistic.

Jeep Brand President Michael Manley said there is a real opportunity to grow his customer base.

"It's clear that consumer demand has changed and developed," he said. "There's a traditional core of the segment that is still looking for class-leading capability, four-wheel-drive leadership and versatility. And, here, Jeep resonates very, very strongly.

"But there's a large and growing part of the segment that is looking for a more fuel-efficient package, a car-like ride and handling with great on-road stability -- particularly during bad weather. And this is where Jeep has a great opportunity."

Chrysler Brand President Olivier Francois said his goal is nothing less than making Chrysler a world class luxury brand, one with a unique take on class and style.

"The market is crowded. We need to be distinctive," he said. "I have no intention to mimic any other car company." 

That said, the former head of Fiat's Lancia brand spoke of opportunities to share products between Chrysler and the Italian up-market marque. 

But he promised to double Chrysler's market share by 2014.

"Based on the product plans they've laid out today, I can't see that," Peterson said. "It's an admirable goal, but these things are easier to say than they are to do."

Additional Facts

Describing Dodge

The brand's cars will be classified under a new system

• Sweet simple
  
• Fun practical
  
• Uptown luxury
  
• Thrill Seeker (with Ultimate performance/SRT)
  
• Cool extrovertive
  

Source: Chrysler Group LLC

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