In the car business, it's all about product.
You can move iron with incentives and lure tire-kickers with a clever ad. But to rack up consistent sales and build a loyal customer base, a car company needs to make quality vehicles that meet buyers' needs and fulfill their desires.
For the "new" Chrysler -- which recently went private and is in the midst of a restructuring -- meeting this challenge won't be easy.
Although the automaker's Chrysler, Dodge and Jeep vehicles "are seen by consumers as being rugged, tough and powerful with aggressive designs," says Steve Witten of market research firm J.D. Power & Associates, "what they're below average on is being fuel-efficient and environmentally friendly, providing good value for money and appealing to younger drivers."
The Chrysler family also has a bit of an identity crisis, Witten says, with the three brands at times competing for the same customers.
"They should each be going after a different part of the market," he contends. "Let Chrysler be for older people, let Jeep be for the rough, tough, young kids, and Dodge can be for the sporty, performance buyers."
While acknowledging the quality and fuel-economy concerns, the folks at Chrysler counter that they are doing very well, thank you, in the three areas they consider key to success.
"We do best when we have a phenomenal Jeep vehicle, a Ram [pickup] and a minivan," says company spokesman Jason Vines. "That's what drives our company and we're running on all cylinders with those three vehicles."
How does Chrysler's product lineup really add up? Here's a look at the strengths and weaknesses:
The good:
Jeep is still a strong brand overall and the new four-door Wrangler Unlimited is one of the hottest-selling vehicles in the country right now.
"They've stayed true to the hard-core Jeep loyalist, and they've made people who otherwise never would have considered a Wrangler consider a Wrangler," says Karl Brauer, editor in chief at online automotive site Edmunds.com.
The downside, analysts say, was Chrysler's willingness to tarnish Jeep's rep as a tough off-road vehicle -- touted in ads as "trail-rated" -- with "soft" car-based crossovers like the Compass.
"Are you the trail-rated company or are you just the poser crossover company?" asks Eric Noble of CarLab, the Orange-based auto consulting firm. "You can't be both."
