After 11 years, Dodge Neon reaches the end of the road

DEE-ANN DURBIN

Associated Press


DETROIT - After 11 years, Chrysler Group plans to end production of its spunky, low-priced Dodge Neon this week to make way for a sleek replacement.

The last Neon is scheduled to roll off the line with little fanfare Friday at Chrysler's plant in Belvidere, Ill., company spokesman Ed Saenz said Monday.

Chrysler, a unit of DaimlerChrysler AG, is spending $419 million to revamp the Belvidere production line so it can build multiple models, including the Dodge Caliber, which will replace the Neon. The Caliber is expected to go on sale in the early part of next year.

The Neon was first introduced in January 1994 as a 1995 model, in both Dodge and Plymouth versions. It quickly became a favorite among young buyers for its cute styling and quirky marketing, including ads that simply said "Hi." At a starting price of around $14,000, it competes head-on with popular Asian models like the Honda Civic and Toyota Corrolla.

"I think the Neon was a fantastic car for its day," said Andre Tadros, general manager of Northwestern Dodge in Ferndale, Mich. "It was a really beautiful car when it first came out. It got great mileage. People just aren't that excited about it anymore."

Neon sales had reached 1.5 million by the time the car was redesigned in 2000, but customers began to tire of the vehicle. Sales also took a hit when Plymouth stopped producing its version of the Neon in 2001. Neon sales fell by a third between 2000 and 2004, to 113,476.

Tom Libby, senior director of analysis for the Power Information Network, said U.S. automakers have a tougher time making money on small vehicles than their Asian rivals because they have such high fixed labor costs. Libby said it made sense for Chrysler to put more money into minivans and trucks, where it can make much higher margins, than to spend more on boosting the Neon.

Chrysler, which has won praise for the design of the 300C sedan and Dodge Charger, could have another hit on its hands with the Caliber, which will be priced similarly to the Neon but has a more contemporary, wagon-like design. The Caliber is chiseled and aggressive, a complete departure from the Neon.

Tadros said he thinks the Caliber's design and larger interior will attract a broader range of customers, including older buyers.

"It's going to be like a night and day difference," he said. "We can't wait for it."

DaimlerChrysler shares were down $1.84 to close at $49.84 Monday on the New York Stock Exchange.

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ORIGINAL: MidnightBlueNeon

I had a very hard time understanding why they were letting go of the Neon SRT-4. I WAS disappointed abotu the Caliber, but now I am happy about it. I actually looks good. It's light and had has optional AWD. With the 2.4L turbo, it should compete with the STi and Evo. I'm willing to bet there will be more power in the 2.4, but who knows.

So long FWD Neon... Hello AWD Caliber!

ORIGINAL: Daksport1pa

Hey Chase, you thinking about getting one? I really haven't seen them. I'll have to check them out.

I actually looks good. It's light and had has optional AWD. With the 2.4L turbo, it should compete with the STi and Evo. I'm willing to bet there will be more power in the 2.4, but who knows.