Chrysler goes back to drawing board – again

CHRYSLER Group has been given a second overhaul within months by its new Fiat masters who also announced the abrupt departure of two recently-appointed top executives.

The Dodge brand has been split in two – Dodge Car Brand and Dodge Ram Brand – under the fresh shake-up for the troubled company which came under control of Fiat SpA in June amid Chapter 11 bankruptcy proceedings.

The company’s top sales executive, Chrysler brand CEO Peter Fong – appointed after the arrival of new Chrysler Group CEO Sergio Marchionne from Fiat – has left for personal reasons, replaced by another Fiat executive, Lancia chief Olivier Francois.

At Dodge, new brand CEO and president Michael Accavitti also quit “to pursue other interests”. He is replaced by two new appointments – Chrysler’s design vice-president Ralph Gilles - best known for leading the 2005 Chrysler 300C design team - is new Dodge Cars brand president and CEO, while Chrysler’s Denver business centre manager Fred Diaz heads up the newly independent Dodge Ram truck brand.

US media speculation suggests Mr Marchionne wants to forge a more sporty focus for Dodge cars, separate from the more utilitarian pick-up image of Dodge Ram trucks.

From top: Chrysler brand president and CEO Olivier Francois, Dodge Car brand president and CEO Ralph Gilles, Dodge Ram brand president and CEO Fred Diaz.

Mr Marchionne described the ‘unbundling’ of Dodge as “further refinement”.

“This reorganisation will allow us to protect and develop the unique nature of the product offerings within the Dodge brand,” he said.

The only senior brand chief to keep his job is Jeep president and CEO Michael Manley, who also has been given the task of managing Chrysler Group activities outside North America. The product planning role previously held by Mr Manley will be taken over by Joseph Veltri.

Like Mr Manley, Mr Francois will do double duty, continuing to manage Lancia while trying to pull Chrysler out of its market nosedive. Last month, Chrysler Group sales in the US were down 42 per cent on September 2008 in a market down 23 per cent.

Frenchman Mr Francois’ twin role is seen as a move by Fiat SpA to integrate Chrysler products into the upmarket Lancia sales network in Europe. Automotive News speculates that Lancia might base its next-generation Thesis flagship on the next Chrysler 300C. The Chrysler Sebring and Lancia Ypsilon are also subjects of platform-sharing speculation.

In the US, the Chrysler product range is also set to get an injection of Fiat technology, including the Italian brand’s acclaimed MultiAir valve-train system.

The new Dodge Ram division – which will stand alone with its own profit and loss responsibility, in the Fiat style – is in line to gain a range of re-badged Fiat commercial vehicles to boost its reach.

The Fiat Ducato and Iveco Daily are tipped to make the transition from Europe to North America.

Meanwhile, Chrysler dealers have rejected Chrysler Group’s offer to consider applications from 789 dealerships culled under the bankruptcy re-organisation – a quarter of the sales network – to apply for 103 new franchises that it plans to establish around the country.

Instead, the dealers told Chrysler at talks in Washington that they want automatic reinstatement of any rejected dealerships that met or exceeded Chrysler’s objective criteria.