Is The Reality Stick Starting To Work? Chrysler Cancels New SUV In Favor Of Compact - Bloomberg

[hatrack]

May 12 (Bloomberg) -- Chrysler LLC, the automaker owned by private-equity firm Cerberus Capital Management LP, canceled plans for a new sport-utility vehicle and is instead investing in a compact car.

The company won't build a Chrysler brand version of the Dodge Journey SUV in 2009 and will use the savings to help pay for designing a compact car to be manufactured by Nissan Motor Co., Co-President James Press said in an interview today.

The move reflects a push toward more fuel-efficient vehicles and Chrysler's goal of eliminating overlap between its brands. Abandoning the SUV will also leave Auburn Hills, Michigan-based Chrysler with fewer new or revamped products to introduce in 2009, putting the automaker at risk for further declines in market share, analysts said.

``Resources have been deployed to basically support our entry'' into the small-car segment rather than building two versions of the Journey, Press said. ``It's a segment we are not competing in now.'' Press said in March the company needed to cut the number of SUVs it offers in half, from 11. Chrysler gets about 70 percent of its sales from light trucks, which include SUVs.

EDIT

http://www.bloomberg.com/apps/news?pid=20601087&sid=aCE6Zz1ZlC2k&refer=home

[BrklynLib at work]

1. A used car dealer was interviewed on the radio this weekend. No more SUVs for tradeins.

He cannot sell them.

[liberal N proud]

2. Did a light bulb suddenly go on in Detroit?

Glad to hear the change of heart on the SUV.
My only regret is I need a mid size sedan for family travel and I need one that is fuel efficient.

I have yet to see anything that satisfies my wants and needs.

Compact will not do as I don't want to sit shoulder to shoulder, nose to asshole for 10 hour drives.
If I want to feel like a pretzel when I arrive at my destination, I will fly.

[flyingfysh]

3. need a mid size sedan?

Why not try the Prius? It is surprisingly roomy inside, and is considered a mid size car. Find one somewhere, and sit in the back seat for a while.

[liberal N proud]

4. Did that and the back seat is not as comfortable as what I drive now

The girls riding the back can spread out and sleep while I drive. Secondly is luggage space. There isn't much in the way of luggage space on those things.

Prius is not the answer, wish it were.

We are talking the size of the Chrysler 300 or Buick Lucerne. Just need one that is efficient. Although my 2001 Chrysler LHS gets 24 mpg if I am careful down the highway.

[n2doc]

10. Although it seems crazy the new Malibu gets 34-35 mpg highway

I rented 2 in the past few months and one got 35 and the other 33. Don't know why the difference. But for such a boat it was startling. I can't say it was really fun to drive, but it did the job.

Rented a PT cruiser and it only got 25 on the highway. I was disgusted. Just as gutless as the malibu, but lousy milage.

[NickB79]

11. The Malibu is a surprisingly nice car

I bought my girlfriend a used 2003 model last summer, and it does indeed get 30-32 mpg highway. City driving sucks (around 18-20 mpg), but that's to be expected of any non-hybrid or non-compact. Since she only drives 5000 miles per year, that car should last her at least a decade, if not more.

[flamin lib]

5. There really isn't anything out there to meet the need of six passengers

and 30+ mpg. I have a Nissan Sentra and the "big" car is a Buick Regal (big meistake, biggest POS I've ever owned).

When Katrina hit I thought about what it would be like to evacuate four adults and two kids in one of these vehicles. Forget the pets!

Why can't someone make a vehicle with a moderately sized engine, room for six and something near 25 mpg combined? Surely it's possible. Even if we have to sacrifice 0-60 in under 8 seconds, it has to be possible.

[liberal N proud]

6. Oh, it's possible - they are putting hybrids in SUV to get 19 mpg

Take that same hybrid and put it in a Chrysler 300 which gets 20 - 22 mpg already. It should easily reach 28 - 30 I would think?

If they can power the big SUV with a hybrid they could power a mid size sedan. They just choose not to.

It is just like the candidates, we don't get to choose what we want, they tell us. We can either drive the SUV or sit like sardines in a tin can. I still remember riding from Missouri to California and back in my K Car.

[Beregond2]

7. If it's

manufactured by Nissan, in what sense is it a Chrysler?

[Xithras]

9. Just like the old Geo/Chevy Metro. Built by Suzuki.

They get mark it up a little, slap their name on it, and call it "American".

[kestrel91316]

8. HUH?

Hold on, gotta go see what's up at the front desk. My assistant's yelling something about winged pigs all over above the street........