03.21.16 - 2016 Dodge Dart

FCA Needs Help and the Workers are Paying the Price

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For many companies the top selling vehicles by volume are typically some of the smaller ones that are the most affordable. This is not the case for FCA, especially the Chrysler and Dodge portions of the company. FCA has been looking for a partner for some time to help built the Dodge Dart and now they seem to need the same assistance with the Chrysler 200. So far the team that builds the Chrysler 200 have been put on a nine-week layoff until the production catches up with the sales.

How can not producing a car catch up with the sales? When the sales are as slow as they are for the Chrysler 200 so far this year it’s not too difficult. For February alone the 200 experience sales of only 6,600 units which was a 58 percent decline over a year ago and for the year altogether the model is down 61 percent. Originally the team at the Sterling Heights Assembly Plant in Michigan was scheduled to go back to work on March 14, but due to these dismal sales the layoff has been extended until April 4.

The Dodge Dart has experienced lower sales than last year with a nine percent drop in February and a 26 percent decrease compared to last year thus far, but this number is nowhere near the drop of the Chrysler 200. So far the Belvidere, Ill plant has kept on producing the Dart, but if the sales continue to decline this could be another team that is in jeopardy of facing a lengthy layoff.

How has Sergio Marchionne responded to this lack of sales? The FCA chief is looking for a partner to build these two cars for the company. He has stated there are many other automakers that are much better at building small cars than FCA and a partner would allow them to make these cars and keep these two plants running as they should. The solution needed has to be an economical one as both of these cars tend to cost more than they should when it comes to production, which seems odd, but true.

While these talks are taking place Marchionne announced FCA will focus on making large cars, crossovers, SUVS and pickup trucks because these are the profitable parts of the business for FCA right now. Currently sales show that Jeep and Ram are carrying the company with Dodge and Chrysler falling well behind in sales, which means a slowdown of production was needed.

Will FCA find a partner to build the Dart and the 200? I certainly hope so, but there is the possibility FCA may need to sell off both the Dodge and Chrysler brands to someone else who can create the entire lineup more efficiently. It also begs the question of why FCA hasn’t looked into streamlining their production processes to be more efficient and therefore better at making these small cars. I sincerely hope a partner is found and these teams in Michigan and Illinois are able to continue building the small cars we love.

03.21.16 - 2016 Dodge Dart

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