Chrysler Midsize-Car Signals: Venal or Visionary?
By Michelle Krebs September 29, 2009Media reports have Chrysler Group LLC making a possible about-face on its pledge to close 
the Sterling Heights, Mich., assembly plant of its low-performing Chrysler Sebring and Dodge Avenger midsize sedans and convertible. The move by Chrysler's 20-percent owner and managing partner Fiat S.p.A. could signal it has few near-term tactical options to turn around the flagging Chrysler.
Or that it is crazy like a fox.
Of Chrysler's 11 North American assembly plants, Sterling Heights is the lone plant earmarked for closure, intended for sometime next year. But reports continue to say the company's battle plan to resurrect Chrysler may include a provision to keep open the plant, which would have to be leased from Old Carco, the name of the company that assumed the undesirable assets of the "old" Chrysler.
Keeping Sterling Height in operation might be a sign of desperation the company doesn't think it will have anything better to sell by 2011 - if the plan is to continue production of the existing Sebring and Avenger. A hasty reskinning over the same underengineered mechanicals is one plausible but unsavory possibility.
Rumors about the dire straits of Chrysler's product pipeline have accelerated in recent months, spurred to some degree by Chrysler's early-August announcement it will continue production of the PT Cruiser small car - a model Chrysler said nearly two years ago would be discontinued.
But continuing the Sebring and Avenger in their current forms, even if restyled, is not a plan - it would seem to be little more than a time-buying gambit.
Moreover, Chrysler is supposed to be downsizing its manufacturing footprint to more closely align its output with sales, a seemingly tacit condition of its restructuring when accepting some $15 billion in government loans. If it is keeping open Sterling Heights because it is desperate for the revenue from continued sales of the existing Sebring/Avenger, that is a reversal of its pledge to meaningfully restructure.
Can Fiat Quickly Bring It On?
It is not yet known, however, if Fiat perhaps plans to retool the Sterling Heights plant to produce a new generation of Sebring and Avenger based on a Fiat vehicle architecture and wearing a new sheet metal "top hat" of specific Chrysler design.
If Fiat can quickly pull off this maneuver - and if it can afford to do so - keeping open the Sterling Heights plant could be a masterstroke. A new-generation Sebring/Avenger using Fiat architecture almost certainly would be smaller than the current crop of volume-selling "midsize" sedans - models such as the Honda Accord and Ford Taurus - that have ballooned in size and weight just a consumer preferences seem to be shifting and strong new federal fuel-economy and emissions regulations are pending.
A possible interim play might be to at least shoehorn in some of that vaunted, Fiat-designed fuel-efficient powertrain technology we've heard so much about. A big fuel-efficiency boost, in combination with bolder styling, might be enough of a game-changer to put Chrysler's midsizers back on the map.
If Fiat's management is wise, it may have identified the midsize-car segment as the place where any resurrection of Chrysler's fortunes will live and die.
Effectively investing in and nurturing the Jeep brand is important. And hurrying Fiat-developed small cars to market would seem vital. But it could be years before Jeep becomes a high-volume proposition and small cars are almost certain to equate to small (or nonexistent) profits.
It is the vast midsize-sedan segment that supports the best potential for a quick and comparatively large sales-volume improvement (current sales of the Sebring and Avenger are so dismal there is nowhere to go but up) combined with reasonable profits.
Many analysts say Fiat had better have some big moves up its sleeve - and be able to quickly implement them - if Chrysler is to get through what may be years of a trying U.S. market. A fast and effective reengineering and restyling of Chrysler's midsize cars could be just such a bold action. - Bill Visnic, Senior Contributing Editor
Photos by Chrysler
1 - 2010 Chrysler Sebring Limited
2 - 2010 Dodge Avenger
LEAVE A COMMENT
Click here to comment on this entry.Improve the interior, freshen the exterior, add content and reduce number of build configurations (fewer options) is not only the best option, it is the only option other than leaving a gaping hole of no product at midsize or federalizing Fiat's and Alfa's that are not sufficiently modified to meet North American tastes in addition to not being profitable due to being imported from high cost countries.
Continuing midsize production is no surprise. Maybe Fiat will even be able to sell the tooling or use the tooling after production is ended as Cerberus did when tooling for last generation was exported to Russia.
It will be 2012 and 2013 before the wholesale changes to the North American product begins.
To moparbad,
I think you're right, but that presumes they'll be around in 2012 and 2013..
"Improve the interior, freshen the exterior, add content and reduce number of build configurations"
Agree completely. I realize that rentals aren't the best benchmarks to judge a model by, but from the Sebring/Avenger rentals I've had, I would never buy one in their current state. I think a hasty makeover is just what the doctor ordered.
"would be smaller than the current crop of volume-selling "midsize" sedans - models such as the Honda Accord and Ford Taurus " Bill Visnic.
I do not know why I even read anything written by Bill Visnic anymore. Bill, if you do not know - it is a year 2009 on the calendar and Ford's midsize car is Fusion/Milan since four years ago. Taurus was a midsize car but it was four years ago. These days Taurus is based on Volvo S80 platform which can be considered as a fullsize by modern standards. So Fusion Bill, not Taurus, as a auto jurnalist you should know these basic facts. What about reading articles written by other journalists before writing your own?
Regarding subject of arcticle it's main problem is not engine or style, but vague steering with substandart chassis and you cannot improve it wihout changing platform. Restyle or engine change is not gonna work, I guarantee you. VW Passat is also based on compact platform (Golf) but still it is not a bad car. So developing so "midsize" car on compact platform is not a problem per se. It is the platform (which also serves Caliber) which is underengineered.
BTW I can give you other examples of using small platform for midsize pretender, like Ford Tempo which was based on American Ford Escort. Even original Ford Taurus was planned on Escort platform but Ford wisely changed its plans when customer trends to smaller cars reversed.
Most likely Chrysler midsizers using FIAT platform will look more like original Mazda6 (which is not bad to attract younger customers), but Chrysler must go with 200C as a read midsize car if it wants to really succeed because like 300 - there is no competition for 200C.
I'm beginning to agree with your comments about Bill Visnic, maybe he has agoraphobia and can't leave his office anymore, so he has to rely on what others tell him? Beyond that, I think there IS something worth saving in the Sebring/Avenger twins. The platform needs refinement and a diet, but it has always been the ungainly/awkward styling and anemic performance that generated the most criticism. Chrysler has too often 'thrown out the baby with the bathwater', it would have a lot more credibility if it fixed the line instead of dumping it, which is the 'old chrysler way' When they finally get the 200C up and running, then they should consider dropping the sedan and retaining the convertible only.
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