Reports have it that there are plans to phase out the Dodge minivan nameplate and replace it with a crossover vehicle.
By 2013, the automaker will be left with one minivan model, the higher-priced Chrysler Town and Country, and a new crossover, which will be built on a new platform at the Windsor Assembly Plant, according to a recent Automotive News interview with CEO Sergio Marchionne. The crossover will replace both the Caravan and the Dodge Avenger.
"We cannot have the same type of vehicle in the showroom because the consumer is not stupid," Marchionne told Automotive News. "We're not going to create the confusion and conflict in the showroom."
While Chrysler's intention to eliminate one of the two minivans was not new, it was the first time Marchionne confirmed which model would disappear. In the U.S. last year, the Town and Country outsold the Caravan, while the exact opposite was true for Canada.
So far, this year the Dodge Grand Caravan is outselling the Town and Country in both countries.
At Racicot's dealership, Caravan sales outstrip Town and Country sales by a ratio of 10 to one, Racicot said. "It's our bread and butter."
Chrysler Canada would not confirm Tuesday Marchionne's comments. "Any comments that may have been made stand on their own," said LouAnn Gosselin, Chrysler spokeswoman. "As a matter of corporate policy, I cannot comment on future product plans."
However, the plan to trade a minivan nameplate for a crossover received the thumbs up from CAW Local 444 president Rick Laporte, whose union represents about 4,900 workers at Windsor Assembly. "I don't think this is a gamble. Based on listening to Marchionne over the last two years, I think he's trying to diversify Windsor Assembly Plant."
Diversification from a shrinking segment is key to the plant's long-term survival, Laporte added. "I'm looking for diversification because if you look at the minivan market, General Motors and Ford are thinking about entering back into it. So, I think we need something there to diversify the plant in order to keep the three shifts locked in moving forward."
Pricing will be key to ensuring that Chrysler does not lose the price-sensitive Caravan consumer, said Laporte. Retail pricing, excluding incentives or rebates, for the Dodge Caravan ranges from $20,000 to $35,000. The Town and Country manufacturer's suggested retail price ranges from $40,000 to $50,000.
"My understanding from having conversations with the company is the Town and Country, instead of coming in with just the-top-of-the-line model, it will have a top-of-the-line model and a low-end model," said Laporte. "So the Grand Caravan, ultimately, will become a Town and Country, but a lower-line Town and Country."
Chrysler year-to-date minivan sales:
Canada. Dodge Grand Caravan: 44,004. Chrysler Town and Country: 3,539
United States. Dodge Grand Caravan: 71,917. Chrysler Town and Country: 85,830
2010 U.S. Sales. Chrysler Town and Country: 112,275 . Dodge Grand Caravan: 103,323
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