Fiat Chrysler Automobiles ( Fca ) Lost Focus On The Production Of Their Mid Size Sedans

1388 WordsMay 4, 20166 Pages
Executive Summary This research paper will focus on how Fiat Chrysler Automobiles (FCA) lost focus on the production of their mid-size sedans and instead began to focus solely on the Jeep brand and SUV’s. This systematically caused the Chrysler 200 which begins with a selling price of $21,995 with 4 models to choose from and a closing price of $27,570 to lose its place as a highly profitable vehicle for the company. This in turn led to the closing down of the plant in Sterling Heights which caused a large number of Michiganders to be in chaos concerning the future of their employment. Ford Motor Company however would be the best company for them to model themselves after when it comes to the creativity and selling of mid-size sedans. The…show more content…
This paper will discuss the sales of the Chrysler 200 how it began as a beneficial vehicle for the company only to be tossed aside in the end. The Ford Motor Company has created a winning approach to marketing the mid-size Ford Fusion sedan and this is how the FCA could benefit by taking a few pointers from this company. It is also apparent that while a customer survey shows that many consumers like the Chrysler 200 overall this has not convinced the company that it is a vehicle worth investing in to continue production. The Chrysler 200 along with the Dart appears to have seen its final days in the year 2016. Beginning of the end The automotive industry is in the middle of five consecutive years of record sales and this is the first large scale US job cut by the FCA since they emerged from bankruptcy in 2008. Fiat Chrysler Automobiles added about 11,000 hourly workers in the U.S. beginning in 2011 and reported monthly sales gains for 72 consecutive months. The CEO Sergio Marchionne has decided to eventually phase out production of the Chrysler 200 and the Dodge Dart but a clear date has not been set for the end of production but the vehicles will be allowed to continue until they have run their course. The North American production footprint will start focusing on SUV’s and pickups in the U.S. while smaller vehicles will be made in Mexico. A plant in Sterling Heights will be expected to gain production of the Ram 1500 pickup made at Warren

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