Fiat Chrysler Automobiles (FCA) CEO Sergio Marchionne called the Dodge Dart and Chrysler 200 sedan’s 2 of the automaker’s worst financial investments over the last few years during a media conference at the Detroit auto show previously this month.
In 2016 Marchionne decided to exterminate the Dart and 200 as the automobiles were not having enough sales and using up much required area in FCA’s North American production network. The Italian-Canadian executive stated the two four-doors were good enough cars, however were merely contending in an area with great deals of competitors and low profit margins.
“I can inform you today that both the Chrysler 200 and the Dodge Dart, as great items as they were, were the least economically rewarding enterprises that we have performed inside FCA in the last 8 years,” Marchionne stated during the question and answer session. “I have no idea one investment decision that was as bad as these 2 were.”
FCA’s decision to eliminate the 200 and Dart assisted free up area for FCA to construct more trucks, SUVs and crossovers, which not just bring greater revenue margins however are presently in high costumer demand. Critics have stated Marchionne’s choice to put the majority of FCA’s eggs into the bigger vehicle basket was short-sighted, nevertheless he thinks the appeal of trucks, crossovers and vehicles of that ilk is a pattern that’s here to stay.
Regardless of the low profit margins on compact and mid-size sedans, Marchionne isn’t actually opposed to bringing successor to the Dart and 200 to market someday– however he does not desire FCA to construct them. The company is presently trying to find partners to develop the automobiles with, just like how it looked for Mazda to assist it bring the Miata-based Fiat 124 Spider to market, and remained in talks with a numerous companies to do so.
