Chrysler reshuffling begins: 4 cars shut down

Troubled automaker under new management stops production of Pacifa, Magnum, Crossfire and PT Cruiser Convertible.

By Peter Valdes-Dapena, CNNMoney.com staff writer
November 1 2007: 1:32 PM EDT

NEW YORK (CNNMoney.com) -- It wasn't just jobs that Chrysler LLC cut on Thursday. The automaker knocked out some cars as well.
Chrysler announced that it will stop production of four Dodge and Chrysler models: the Dodge Magnum, Chrysler Pacifica, the Chrysler Crossfire and the PT Cruiser Convertible.

The moves come as the troubled automaker, recently acquired by a private equity firm, is embarking on a major reorganization. Chrysler also said Thursday that it would eliminate some shifts from five of its North American assembly plants and cut 8,500 to 10,000 hourly jobs by 2009.
The cancellation of the four models is the first major product move by Chrysler since James Press, formerly Toyota's top American executive, joined the company in September. Press is now in charge of Chrysler's North American product strategy.
Chrysler to eliminate 12,000 jobs
The Dodge Magnum, introduced in 2004, is an aggressively styled station wagon available with the company's powerful Hemi V8 engines. It shares its basic engineering with the Dodge Charger and Chrysler 300 sedans.
The Magnum has been, by far, the slowest-selling of those models. Chrysler will be introducing another model, the Dodge Challenger coupe, on that platform beginning next summer.
In September, Chrysler sold more than 9,000 each of the Dodge Charger and Chrysler 300, but only about 3,600 Magnums.
The Chrysler Pacifica is a crossover SUV with 3 rows of seats and combines elements of SUV and minivan styling. The Pacifica was one of the first crossovers on the market but has struggled to find buyers in an increasingly competitive market.
Through September, Pacifica sales were down 30 percent compared to the first nine months of 2006. Meanwhile, the segment is hot: Sales of midsized crossover vehicles from all manufacturers rose 73 percent, according to the Power Information Network.
The Pacifica's place in Chrysler's product lineup may be filled by the Dodge Journey, a new three-row crossover the company plans to introduce early next year.
Introduced in 2003, the Crossfire, a two-door sports car built in Germany, is based on the engineering platform of the previous-generation Mercedes-Benz SLK. It was seen as an example of synergy when Chrysler was part of DaimlerChrysler Corp.
In August, Daimler, sold off Chrysler to the private equity group Cerberus Capital Management.
By the end of the 2006 model year, so many Crossfires remained on U.S. dealer lots that Chrysler didn't even import any 2007 Crossfires.
Sales numbers aside, the expense of manufacturing the Crossfire in Europe and shipping it the United States was a major factor in deciding to stop production.
The Crossfire was likely only marginally profitable for Chrysler, said Power Information Network analyst Tom Libby.
While canceling the PT Cruiser Convertible, Chrysler bucked earlier media reports that it would stop PT Cruiser production altogether. The company will still make the PT Cruiser hardtop.
Introduced in 2001, the retro-styled PT Cruiser wagon is classified as a crossover. It sales have dropped significantly in recent years, especially as it has faced competition from the very similar Chevrolet HHR introduced in 2006.
Although it is still the fifth-most popular compact crossover in America, just behind the Chevrolet HHR, its sales are down 27 percent so far this year, according to the Power Information Network.
Still, the PT Cruiser remains popular enough, with 2007 sales expected to top 100,000, that it made sense for the company to keep producing it, said Chrysler spokesman Rick Deneau.
The convertible version, which Chrysler is dropping, costs about $4,000 more and represents just 7 percent of PT Cruiser's sales, according to the Power Information Network.
"That thing was just not moving as well as we would have liked," Deneau said of the convertible.
In addition to the Dodge Challenger and Journey, Chrysler will also introduce hybrid versions of its Dodge Durango and Chrysler Aspen large SUVs next year.

 

Maybe if Chrysler didn't have its head of its **** as far as advertising the Crossfire things would have been different.

have any of you EVER SEEN A DECENT CROSSFIRE COMMERCIAL? No passion, no seductive views of the car. LOL watch a Cadillac CTS commercial, or a Mercedes commercial. Advertising is supposed to instill something in you. Chrysler commercials instill yawns.

What a bunch of morons. Period

 

IT REALLY DOESN'T MATTER ANYMORE!
DC DOESN'T EXIST. ONLY ON THEIR OWN NOW
OUR CARS ARE NOW MODERN CLASSICS A ONE OF A-KIND SERIES.

 

lol, man this car was dead three years ago when production stopped in Germany. except for the crossfire, its time for a new face on Chrysler, all their vehicles are getting old, but I fear that anything new will be horrific flops.

 

Only time will tell what happens to the Crossfires collectabilty! But I think it will be more wanted in the future than it was in it's production time. 11/01/07 remember who said it here first.

Only thing is we're all running out of time!

 

Always the optimist...

The Challenger, Hybrid Durango and Aspen and 4,500 - 6,500 trucks are sure gonna suck. Why would anyone want those?

 

Classic or not, it doesn't really matter to me when I get behind the wheel.

For me, I enjoy and love my Crossfire and this doesn't change it, I didn't buy it as an investment.

 

This is a good thing. I for one will be glad to see less of them, and to keep the heads still turning.

 

I fully believe they are future classics, especially the SRT's. it will be interesting to see how they are perceived years from now. Can anyone think of any other classics that were built by one company and then sold as a different brand?

for years the Sunbeam Tiger was kind of a ******* child, but is now fully loved and respected as a Shelby.

 

Nash "Healey" (British)
"DeTomaso" Ford Pantera (Italian)
Buick Opel GT's (Germany)
"Original" Ford GT (British) Lotus built a small number for the street.
Cadillac Allante (Italian/Pininfarina)

 

Jensen Chrysler powered 70's.

Facel Vega Chrysler powered 60's italian body.

more...

 

Bob Nardelli will get'em straightened out ! LMAO !

 

All those are collectable today. But many of them are Hybrids with engines of one make with the body of another. The Crossfire is really a thinly disquised Mercedes. If they ever become real collectable I bet you will see mercedes fans and Chrsyler fans fighting over it. People in England refer to the Cobra as the "AC Cobra" and we over here we call it the Shelby Cobra.

 

I don't think they will sell because of the $100 barrel of crude, soon we'll be paying $4.50/gal. not even those hybrids will be very economical, they need to start designing electric cars and trucks and smaller diesel engines.

 

That is not the kind of hybrid I was referring to. Example: British built AC Ace + Ford V8 = Cobra or British built Jensen Healy's with Mopar 440 big blocks under the hood etc...

 

I think the Crossfire is more like a Mercedes Clone car since it was 90% + German (BENZ) in parts and built there too. Mercedes has used Karmann for specialty car as does other high end names!

AS for collectability it doesn't matter now but maybe in 7-10 years after last year sold as new. By then we'll all be in Hybrid hondas gas will be $10+ a gallon.

 

Thanks for the update. I'm glad that they are discountining the Crossfire. I drove mine to a friends house on holloween and can't tell you how many adults and kids told me that it was a really cool car. Enought said.

 

Aero - Why on earth do you keep those big engines in your back seat?

Pat

 

Pat, putting a small block V8 in the back seat of a Corvair was a great way to get a mid engine high performance car on a low budget.

Blueaero was that you I talked to on the porch of the Station Inn in Cresson, Pa?

 

Story in Car & Driver


http://www.caranddriver.com/carnews/...nd-magnum.html


This is also a VERY INTERESTING article about the merger ("Take over") and split of MB & Chrysler.

http://www.caranddriver.com/columns/...n-divorce.html