Chrysler thinks its future may be in a new lineup of smaller cars based on models from Italian partner Fiat. The question is how to make them for Americans put off by stiff suspensions, firm seats and — perish the thought — not enough cupholders.
The problem is further complicated because Americans generally are plumper and taller than Western Europeans, and they're used to driving fatter and longer cars on wider roads.
It's a dilemma faced by nearly all automakers as they try to hold down development costs by tailoring cars to sell around the globe. But at no company is the problem more acute than Chrysler, where a wholesale lineup change is needed quickly to boost sagging sales.
On Friday, Chrysler's board was to consider a new model lineup that would consist of reworked Chrysler products on the larger end and everything from mid-sized cars to minis built on smaller Fiat frames, a person briefed on the agenda said.
Through August, Chrysler's sales were down 39 percent compared with the same period last year, the largest decline of any major automaker. In the critical midsize segment, which often is top-seller in the U.S. market, the company this year has sold only 34,700 of its two entries, the Chrysler Sebring and Dodge Avenger. That's only 15 percent of the 238,000 Camrys told by Toyota, the perennial leader.
"They need better entries and they need them yesterday," said Michael Robinet, vice president of CSM Worldwide, a Detroit-area auto industry consulting firm. "They really are uncompetitive in that segment now."
Chrysler is banking on Fiat's smart designs and fuel efficiency to win over U.S. buyers.
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