A New Chrysler Group Brand? Return of Plymouth?:
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07-26-2004, 07:13 PM
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A New Chrysler Group Brand? Return of Plymouth?:
DaimlerChrysler explores brand for younger buyers
Interest signals influence of Gen Y, which is expected to buy 1 in 5 vehicles by 2010
By Brett Clanton / The Detroit News
DaimlerChrysler AG’s Chrysler Group could launch an all-new, low-priced brand aimed at young buyers within two to three years.
The new brand would be an entry-level spinoff of the automaker’s Dodge or Jeep brands, Chrysler CEO Dieter Zetsche said in an interview last week. Chrysler would likely seek a low-cost partner to help develop and build cars and trucks for the new marque, he said.
While Zetsche declined to provide details, a Chrysler source familiar with the matter said the vehicles would be sold in Chrysler Group dealerships, but marketed separately, similar to what Toyota Motor Co.p. has done with its youth-centric Scion brand.
Chrysler has been exploring the new brand for more than a year and likely will decide whether or not it will launch it by year’s end, the source said. At least three concept vehicles have been developed for the new marque. If Chrysler decides not to create a new brand, the vehicles could be sold under existing Chrysler Group nameplates.
Chrysler’s interest in a new brand that appeals to younger buyers underscores the growing influence in the auto industry of Generation Y, the 65 million Americans born between 1977 and 1994. Gen Y consumers are expected to purchase 1 in 5 vehicles in the United States by 2010, according to J.D. Power and Associates.
Marketing experts say the impact of Generation Y could rival or even exceed that of baby boomers. “This is a trend Chrysler cannot ignore,” said Michael Robinet, an automotive analyst with CSM Worldwide in Farmington Hills.
A youth-oriented brand could introduce Chrysler to buyers who might otherwise ignore the smallest of Detroit’s automakers. The average Dodge customer is 44 years old, while Jeep buyers average 43 and Chrysler brand buyers average 50, according to J.D. Power and Associates’ Power Information Network, which studies dealer sales data. The average age of buyers of all vehicle brands is 46.
Pros and cons
Chrysler executives in Auburn Hills are still weighing the pros and cons of spending millions to roll out a new brand in a U.S. auto market already crowded with nameplates.
Zetsche said a new brand from Chrysler must be attractive to both young buyers and other entry-level buyers the automakers’ current brand lineup may be missing.
“(The concept) was not driven in the first place by the idea of a youth brand,” Zetsche said, “but more of an idea of creating an affordable brand.”
Because young buyers are typically more sensitive to price, though, offering vehicles with lower sticker prices could be one way to appeal to Gen Y customers, he said. But there is still debate within Chrysler over the best way to reach Gen Y buyers.
“Some people feel you need to have a $12,000 car, either built domestically or imported from somewhere else,” said George Murphy, Chrysler’s senior vice president for global brand marketing. “Some people believe you’re basically served with used cars, which is 75 percent of what people under 25 buy.
“I haven’t seen much to tell me that our current brands can’t reach younger target audiences with the right products.”
Any new brand will not be affiliated with the Chrysler brand, which Chrysler is trying to move upscale with premium vehicles such as the new 300 sedan. It would be more likely a spinoff of Jeep or Dodge, which have younger average buyers.
Chrysler is likely to seek out a joint venture partner, perhaps in a low-cost country such as China or South Korea, to share engineering and parts for the new brand. Because of high labor costs, it’s often impossible to make a profit on small, low-price vehicles produced in the United States.
“You should look for some cooperation for execution of this idea,” Zetsche said, but that does not necessarily mean Japan’s Mitsubishi Motors Corp. and Hyundai Motor Co. in South Korea. Both companies are partially owned by DaimlerChrysler and linked with the automaker on several existing vehicle projects.
Zetsche said Chrysler has approached several automakers with the idea of partnering on a low-cost car brand, but declined to name them.
At one time, there was talk within Chrysler of giving the Plymouth brand a more youthful cast, but that idea died with the historic nameplate in 2001.
Toyota Scion
Toyota rolled out its youth-oriented Scion brand last year. The compact and uniquely-designed cars start at around $16,000 and are meant to be a test case for Toyota as it tries to discern the preferences of up-and-coming buyers. Toyota hopes to sell 100,000 Scion vehicles in the United States in 2005 after a staggered roll out this year.
“Toyota is breaking new ground that is likely causing most other mainstream manufacturers to take a look at their youth strategies,” Robinet said.
While Ford Motor Co. has won over young buyers with its Focus sedans and hatchbacks and General Motors Corp. has reached Gen X and Y customers with its Saturn brand, neither has launched a nameplate aimed squarely at those groups. Honda has also found room for the youth-targeted Element SUV within its lineup without creating a whole new brand.
But there are no guarantees that youth-driven brands or designs will ultimately attract youthful drivers. Scion draws more Gen Y buyers than any other marque — 19.1 percent of sales are to consumers 25 and under — but the average age of Scion buyers is still 40, according to J.D. Power and Associates. And Honda’s Element has an average buyer age of 43.
In the end, Chrysler may decide that adding another brand is too costly and too risky, given the already crowded landscape of vehicle nameplates in the United States.
But if Chrysler rolls out new, low-cost cars, Dan Frost believes he can sell them. “We don’t offer (young buyers) a car at all,” said Frost, president of Southfield Chrysler Jeep. “The closest we come is a Dodge Neon.”
Zetsche, however, is making no promises.
“Once again, I don’t exclude the possibility that we might do that someday,” he said. “But there’s nothing definite at this point in time.”
Source: The Detroit News
redriderbob
Interest signals influence of Gen Y, which is expected to buy 1 in 5 vehicles by 2010
By Brett Clanton / The Detroit News
DaimlerChrysler AG’s Chrysler Group could launch an all-new, low-priced brand aimed at young buyers within two to three years.
The new brand would be an entry-level spinoff of the automaker’s Dodge or Jeep brands, Chrysler CEO Dieter Zetsche said in an interview last week. Chrysler would likely seek a low-cost partner to help develop and build cars and trucks for the new marque, he said.
While Zetsche declined to provide details, a Chrysler source familiar with the matter said the vehicles would be sold in Chrysler Group dealerships, but marketed separately, similar to what Toyota Motor Co.p. has done with its youth-centric Scion brand.
Chrysler has been exploring the new brand for more than a year and likely will decide whether or not it will launch it by year’s end, the source said. At least three concept vehicles have been developed for the new marque. If Chrysler decides not to create a new brand, the vehicles could be sold under existing Chrysler Group nameplates.
Chrysler’s interest in a new brand that appeals to younger buyers underscores the growing influence in the auto industry of Generation Y, the 65 million Americans born between 1977 and 1994. Gen Y consumers are expected to purchase 1 in 5 vehicles in the United States by 2010, according to J.D. Power and Associates.
Marketing experts say the impact of Generation Y could rival or even exceed that of baby boomers. “This is a trend Chrysler cannot ignore,” said Michael Robinet, an automotive analyst with CSM Worldwide in Farmington Hills.
A youth-oriented brand could introduce Chrysler to buyers who might otherwise ignore the smallest of Detroit’s automakers. The average Dodge customer is 44 years old, while Jeep buyers average 43 and Chrysler brand buyers average 50, according to J.D. Power and Associates’ Power Information Network, which studies dealer sales data. The average age of buyers of all vehicle brands is 46.
Pros and cons
Chrysler executives in Auburn Hills are still weighing the pros and cons of spending millions to roll out a new brand in a U.S. auto market already crowded with nameplates.
Zetsche said a new brand from Chrysler must be attractive to both young buyers and other entry-level buyers the automakers’ current brand lineup may be missing.
“(The concept) was not driven in the first place by the idea of a youth brand,” Zetsche said, “but more of an idea of creating an affordable brand.”
Because young buyers are typically more sensitive to price, though, offering vehicles with lower sticker prices could be one way to appeal to Gen Y customers, he said. But there is still debate within Chrysler over the best way to reach Gen Y buyers.
“Some people feel you need to have a $12,000 car, either built domestically or imported from somewhere else,” said George Murphy, Chrysler’s senior vice president for global brand marketing. “Some people believe you’re basically served with used cars, which is 75 percent of what people under 25 buy.
“I haven’t seen much to tell me that our current brands can’t reach younger target audiences with the right products.”
Any new brand will not be affiliated with the Chrysler brand, which Chrysler is trying to move upscale with premium vehicles such as the new 300 sedan. It would be more likely a spinoff of Jeep or Dodge, which have younger average buyers.
Chrysler is likely to seek out a joint venture partner, perhaps in a low-cost country such as China or South Korea, to share engineering and parts for the new brand. Because of high labor costs, it’s often impossible to make a profit on small, low-price vehicles produced in the United States.
“You should look for some cooperation for execution of this idea,” Zetsche said, but that does not necessarily mean Japan’s Mitsubishi Motors Corp. and Hyundai Motor Co. in South Korea. Both companies are partially owned by DaimlerChrysler and linked with the automaker on several existing vehicle projects.
Zetsche said Chrysler has approached several automakers with the idea of partnering on a low-cost car brand, but declined to name them.
At one time, there was talk within Chrysler of giving the Plymouth brand a more youthful cast, but that idea died with the historic nameplate in 2001.
Toyota Scion
Toyota rolled out its youth-oriented Scion brand last year. The compact and uniquely-designed cars start at around $16,000 and are meant to be a test case for Toyota as it tries to discern the preferences of up-and-coming buyers. Toyota hopes to sell 100,000 Scion vehicles in the United States in 2005 after a staggered roll out this year.
“Toyota is breaking new ground that is likely causing most other mainstream manufacturers to take a look at their youth strategies,” Robinet said.
While Ford Motor Co. has won over young buyers with its Focus sedans and hatchbacks and General Motors Corp. has reached Gen X and Y customers with its Saturn brand, neither has launched a nameplate aimed squarely at those groups. Honda has also found room for the youth-targeted Element SUV within its lineup without creating a whole new brand.
But there are no guarantees that youth-driven brands or designs will ultimately attract youthful drivers. Scion draws more Gen Y buyers than any other marque — 19.1 percent of sales are to consumers 25 and under — but the average age of Scion buyers is still 40, according to J.D. Power and Associates. And Honda’s Element has an average buyer age of 43.
In the end, Chrysler may decide that adding another brand is too costly and too risky, given the already crowded landscape of vehicle nameplates in the United States.
But if Chrysler rolls out new, low-cost cars, Dan Frost believes he can sell them. “We don’t offer (young buyers) a car at all,” said Frost, president of Southfield Chrysler Jeep. “The closest we come is a Dodge Neon.”
Zetsche, however, is making no promises.
“Once again, I don’t exclude the possibility that we might do that someday,” he said. “But there’s nothing definite at this point in time.”
Source: The Detroit News
redriderbob
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07-27-2004, 12:11 AM
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07-27-2004, 01:33 AM
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RE: A New Chrysler Group Brand? Return of Plymouth?:
Yes Smart is to debut in 2006 here in the U.S. However, Smart is a DaimlerChrysler brand, and the word for several years have been about a Chrysler Group brand. However, I wouldn't doubt on seeing a few rebadged Smart vehicles as vehicles for this new brand!
redriderbob
redriderbob
#5
07-27-2004, 11:09 AM
RE: A New Chrysler Group Brand? Return of Plymouth?:
DaimlerChrysler May Emulate Scion and Create a Separate Youth Brand
This is the one they should bring out:
This is the one they should bring out:
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07-27-2004, 02:53 PM
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#7
07-27-2004, 03:24 PM
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RE: A New Chrysler Group Brand? Return of Plymouth?:
My only thought is it would be a mistake to take the name "Plymouth" and try to make it into a youth oriented product line. Although I'd be all for it and would probably be lined up to buy the first 180 Horse 2.4 World Engine Neon replacement, it's not what I think a 21year old is looking for. They need a Millenial name. Something like Scion, Focus, Saturn. (Maybe name it "Cosmos" with model names like "Andromeda" and "Uranus" [sm=lol.gif]?)
Unfortunately, (being a fan of superbirds and roadrunners) Plymouth is sort of thought of in the same league as Oldsmobile. Do you see GM marketing to youth by bringing back the "Oldsmobile" moniker? "Well. . .It WAS your father's Oldsmobile. . .but now it's all yours junior!" I think that's why the smart guys selling their old plymouth neons on Ebay generally list them under "Dodge" and occassionally mention something about "Plymouth/Dodge" neon or "Plymouth Neon Expresso. . . same options as a Dodge Neon R/T". For a lot of "kids" plymouth is associated with Voyagers, Acclaims and (no joke) The Aries K--even though a Dodge model several people think of that box with eggcrate grill as a Plymouth. . . and an ugly one at that.
Nope. . .think they need to go with an all new name that appeals to Gen Y.
Unfortunately, (being a fan of superbirds and roadrunners) Plymouth is sort of thought of in the same league as Oldsmobile. Do you see GM marketing to youth by bringing back the "Oldsmobile" moniker? "Well. . .It WAS your father's Oldsmobile. . .but now it's all yours junior!" I think that's why the smart guys selling their old plymouth neons on Ebay generally list them under "Dodge" and occassionally mention something about "Plymouth/Dodge" neon or "Plymouth Neon Expresso. . . same options as a Dodge Neon R/T". For a lot of "kids" plymouth is associated with Voyagers, Acclaims and (no joke) The Aries K--even though a Dodge model several people think of that box with eggcrate grill as a Plymouth. . . and an ugly one at that.
Nope. . .think they need to go with an all new name that appeals to Gen Y.
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#8
07-27-2004, 03:26 PM
The Only Elite DF Member
RE: A New Chrysler Group Brand? Return of Plymouth?:
Cutting Edge Design
The Dodge Razor™ concept car embodies the purest of sports coupe design: aspirational, emotional and inspirational. Through efficient design, Dodge Razor cuts right to what is vital for enhanced driving pleasure. A sprint to 60 miles per hour in less than six seconds, top speed greater than 140 miles per hour, a six-speed manual transmission, rear-wheel drive and an engine displacement of 2.4 liters. These specifications can only mean one thing -- less weight, more fun.
"Dodge Razor has a simple shape with every line offering an abundance of emotion and purpose," said Akino Tsuchiya, who developed the exterior with Kevin Verduyn. "Razor's dramatic proportions scream 'I'm bold, I'm powerful, I'm Dodge'. The in-your-face 'Orange Slice' body color reflects the same attitude." Adds Verduyn: "Working off an all-new platform, we could create extreme proportions. The long hood, high sills, wide body, narrow greenhouse and low center of gravity all indicate secure, protective performance."
True to minimalist form, Dodge Razor's only ornamentations are the chrome bumpers, the racing-style billet-aluminum gas cap, the classic door handles and mirrors and the jewel-like lamp design. "This project really is about the power of purpose and purity," said Verduyn.
The same holds true for the interior. It offers the necessities for driving, nothing more. No power windows or mirrors, no radio or leather power seats, no frills whatsoever. Dodge Razor offers its two occupants lightweight, competition-style seats, four-point racing harnesses, storage behind their seats and the pure joy of driving.
The Dodge Razor's instrument cluster has an integrated tachometer/speedometer with analog reading of the revs and a digital read-out of the speed. Easy-to-read gauges for temperature/oil pressure and fuel/battery flank this compact unit. The interior is finished in body color and extruded aluminum. "We feel passionate about keeping it simple and honest," said interior designer John Sodano. "Razor has a focused driver's interior, enhancing the experience of raw power as only a sports car can."
Searching for a name that reflected the car's energy and attitude, the Chrysler Group approached Razor USA to form a licensing partnership with the trendsetting and youthful RazorTM brand. "We are proud to join forces with the Chrysler Group on a car that complements Razor's lineup of youthful, high-tech products," said Carlton Calvin, president of Razor USA LLC. "The Razor philosophy is about revolutionizing classic products with beautiful design and technological innovation and we are thrilled to see a similar philosophy reflected in the Dodge Razor."
The Dodge Razor™ concept car embodies the purest of sports coupe design: aspirational, emotional and inspirational. Through efficient design, Dodge Razor cuts right to what is vital for enhanced driving pleasure. A sprint to 60 miles per hour in less than six seconds, top speed greater than 140 miles per hour, a six-speed manual transmission, rear-wheel drive and an engine displacement of 2.4 liters. These specifications can only mean one thing -- less weight, more fun.
"Dodge Razor has a simple shape with every line offering an abundance of emotion and purpose," said Akino Tsuchiya, who developed the exterior with Kevin Verduyn. "Razor's dramatic proportions scream 'I'm bold, I'm powerful, I'm Dodge'. The in-your-face 'Orange Slice' body color reflects the same attitude." Adds Verduyn: "Working off an all-new platform, we could create extreme proportions. The long hood, high sills, wide body, narrow greenhouse and low center of gravity all indicate secure, protective performance."
True to minimalist form, Dodge Razor's only ornamentations are the chrome bumpers, the racing-style billet-aluminum gas cap, the classic door handles and mirrors and the jewel-like lamp design. "This project really is about the power of purpose and purity," said Verduyn.
The same holds true for the interior. It offers the necessities for driving, nothing more. No power windows or mirrors, no radio or leather power seats, no frills whatsoever. Dodge Razor offers its two occupants lightweight, competition-style seats, four-point racing harnesses, storage behind their seats and the pure joy of driving.
The Dodge Razor's instrument cluster has an integrated tachometer/speedometer with analog reading of the revs and a digital read-out of the speed. Easy-to-read gauges for temperature/oil pressure and fuel/battery flank this compact unit. The interior is finished in body color and extruded aluminum. "We feel passionate about keeping it simple and honest," said interior designer John Sodano. "Razor has a focused driver's interior, enhancing the experience of raw power as only a sports car can."
Searching for a name that reflected the car's energy and attitude, the Chrysler Group approached Razor USA to form a licensing partnership with the trendsetting and youthful RazorTM brand. "We are proud to join forces with the Chrysler Group on a car that complements Razor's lineup of youthful, high-tech products," said Carlton Calvin, president of Razor USA LLC. "The Razor philosophy is about revolutionizing classic products with beautiful design and technological innovation and we are thrilled to see a similar philosophy reflected in the Dodge Razor."
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07-27-2004, 03:45 PM
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A New Chrysler Group Brand? Return of Plymouth?:
Chrysler Considering Scion-Alike?
The Detroit News reports that DaimlerChrysler is looking at adding a Scion- or Smart-like brand to the Chrysler Group lineup, spinning it off of the Dodge, and/or Jeep brands. Possibly looking to the Far East for a partner to develop inexpensive vehicles in the sub-$15,000 range, Chrysler may decide by year's end whether to go along with the concept. Chrysler, according to the report, may already have three vehicles under development for the new brand, which could go to Jeep and Dodge if the separate distribution channel does not happen.
thecarconnection.com
redriderbob
The Detroit News reports that DaimlerChrysler is looking at adding a Scion- or Smart-like brand to the Chrysler Group lineup, spinning it off of the Dodge, and/or Jeep brands. Possibly looking to the Far East for a partner to develop inexpensive vehicles in the sub-$15,000 range, Chrysler may decide by year's end whether to go along with the concept. Chrysler, according to the report, may already have three vehicles under development for the new brand, which could go to Jeep and Dodge if the separate distribution channel does not happen.
thecarconnection.com
redriderbob
#10
07-28-2004, 01:16 AM
RE: A New Chrysler Group Brand? Return of Plymouth?:
Both the Razor and Plymouth are dead -- if they come out with a new brand, it will no doubt have a new brand name to go with it. [&:]
I predict Hyundai and DCX crossbreeding in the works; how could it not? At $12k, it would have to be to be even remotely profitable...
- novicius -
I predict Hyundai and DCX crossbreeding in the works; how could it not? At $12k, it would have to be to be even remotely profitable...
- novicius -