A few blogs back I wrote about how Chrysler is going to combine its three brands and start eliminating overlapping models. The idea is to have Dodge concentrate on trucks and work-utilities, with Chrysler exclusively selling cars, and Jeep offering only SUV-based Jeeps.It's a bold plan, but a risky one. And while I see the logic in what they're trying to achieve, I don't agree with parts of it. Specifically, I wrote in my blog that no matter what happens, they ought to keep the Dodge Viper. Well, so much for my opinion. The word just leaked out that the Viper is going to get the axe.
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The automotive analysts at Bear Stearns report today that this is part of Chrysler's unrelenting mission to cut costs and get back to profitability. Since the Viper is built in its own stand-alone plant in Detroit, it gives the company the opportunity to close another high-cost factory and get rid of more high-cost labor. It also saves the company from having to invest in a redesign of the Viper, a redesign which was already underway.
Even though the headcount reduction doesn't add up to all that much, and even though the Viper is built in pretty low production, killing the car could save the company several hundred million dollars a year. And Chrysler desperately needs that kind of money.
But the reason I thought they should keep it is that the Viper brings in hundreds of millions of dollars a year in free publicity. It's an iconic car that attracts hard core enthusiasts to the Dodge brand, even if they can't afford it. I have no doubt the Viper helps sell Rams and Durangos as well as Chargers and Avengers.
So the next question becomes: what happens to the Dodge Challenger? The guys at Bear Stearns say that the pony car will stay in the line-up, as will the Charger R/T---at least for the time being. Since they're both built in the same plant as the Chrysler 300 and use the Hemi, there isn't much cost savings in getting rid of them – at least not right away.
They also say that there's a glimmer of hope that the Viper will hang on to complement the other two muscle cars. But with the car market slowing dramatically, and with Chrysler's sales and market share cratering, there's a lot more internal pressure to get rid of the Viper than to keep it.
No doubt this report is going to cause a huge public outcry against killing the car. And I've got to believe the more public and the more vocal it is, the harder it will be for Chrysler to get rid of it. So all you Autoblog readers out there, let 'em know what you think.
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Reader Comments (Page 1 of 3)
brandonwillis888777 @ Mar 31st 2008 1:39PM
KEEP THE VIPER!!!
DBW @ Mar 31st 2008 1:40PM
I honestly do not think the Viper is selling Rams & Chargers. Your average car buyer does not really link the two. That is an argument that us enthusiasts use to convince ourselves that it makes sense to produce a low volume, money losing car. Chrysler desperately needs those funds to drastically improve the interiors in their current cars. That is what will keep buyers, not so called "halo" cars.
policyvote @ Mar 31st 2008 3:02PM
I think the problem is now that the "halo" car isn't advertised. In order for a halo car to work, it's got to be highly visible, always at the forefront of people's minds. Dodge has basically been churning out the Viper with mild tweaks for, what, 15 years now? When was the last time Dodge even mentioned the Viper in any of its press?
Peace
policy
Luis @ Mar 31st 2008 7:30PM
I agree. I also think it's the other way around, rams and chargers sell the viper. Why should someone have to shell out thousands more on a car that isn't going to haul your family or the groceries. Granted it's a totally different market, but I think if Chrysler and other american automakers took a couple of steps back and reconfigured their way of thinking, we might actually see a nice rendering in the near future.
cowboy bob @ Mar 31st 2008 1:41PM
Although I like the Viper a lot, I can see the rational issue to dump it. The money could be spent on a vehicle that contributes more to the bottom line. As to elimination of the overspread within the company, I think this is a good idea as well. That it, IF they make the right moves to produce cars and trucks that people WANT. This has been their problem forever. Things like having no affordable roadster, or putting a sixbanger in the Prowler and that other whachamacallet with the Jaguar coupe rear end. Make a small roadster with a small six in it to blow the doors of Mazda and Solstice. Make a midsize and fullsize truck with power and good fuel economy. Produce several cars for the masses. Make more rwd's, even it they can't be gas mizers. Make a replacement for the Neon that looks like a car instead of......well...whatever.
Jared @ Mar 31st 2008 1:45PM
Dump the Viper. The future of Chryslerbus does not depend upon whether or not they have a Viper. The future of Chryslerbus DOES depend upon whether or not they have competitive midsize and small cars (and no, the current Avenger/Stratus is not competitive). Without a competitive small and midsize car, Chryslerbus is bankrupt within 5 years.
The Viper is a luxury that they just can't afford right now.
havoc @ Mar 31st 2008 1:47PM
dropping the viper from the line-up could also release what little restriction towards cafe results that it contributes to.
and the viper may not help sell rams, but it helps sell decals (stripes)!
John R @ Mar 31st 2008 1:49PM
Are we talking about the same Bear Stearns here?
Anyway, unnfortunately, there is a pall of Death that surrounds Chrysler that I don't believe the Viper would have been able to exorcise. Who would want to patronize an automaker that makes the worst products out of the Detroit 3 and may not be around in 5 years?
I don't believe halo cars are THAT intergral to the success of a company, look at Hyundai. They are doing better than Chyrsler and they don't have a halo car...yet. To me a halo car is what an automaker does when they are doing well for itself. Is Chrysler doing well for itself?
When it returns to profitablity then the Viper can comeback. Cars like the Viper aren't unknown to take a hiatus. Just because it stops production for a number of years doesn't mean its gone forever.
tio @ Mar 31st 2008 1:53PM
R.I.P Chrysler Corp.
Mike @ Mar 31st 2008 1:54PM
Kill it now, bring it back later if it fiscally reasonable to do so.
They need to focus on saving the company, not some low volume ultra-muscle car.
Gardiner Westbound @ Mar 31st 2008 1:56PM
One wonders how killing the Viper could save Chrysler several hundred million dollars a year.
sw @ Mar 31st 2008 3:36PM
The R&D required to meet federal restrictions, advertising the viper. They can't share the viper platform with any other car further ballooning the cost of the viper, and last but not least almost all halo cars are sold at a loss to promote the brand.
MJK @ Mar 31st 2008 2:00PM
So what happens to the Challenger in this new corporate set up?
sdiori @ Mar 31st 2008 2:03PM
At the end of that day, this is move makes the most financial sense. They instantly save critical funds, and they refocus on their core products: mainstream cars and trucks. Chrysler cannot exist, much less the Viper, without Joe Schmoe signing on the dotted line for an Avenger or 300. And with stiff competition here and abroad, Chrylser can no longer afford to shoot for mediocrity. While we may lament the demise of the Viper, if Chrysler is successful in reinvorgorating the brand, the Viper will likely return as a more crafted piece....(of course, we'll complain that its loss the 'rawness' of the original...)
Dausman @ Mar 31st 2008 2:09PM
How about a Ford Viper?
Totally unrealistic? Guess they are hanging on with what they have....
Tata seems to have a huge bankroll..Tata Viper?
A Leno Viper?
Viper seems to be too good of an automobile to put on the rolls of extinction.
Sorry to see it go.
With CAFE, we may see even more high powered performance cars dissappear.
MrSlice @ Mar 31st 2008 2:11PM
Actually, ford makes some sense: They want a halo car to compete with the corvette, and there's been on-again, off-again talk about building the shelby gtr. The viper line would give them that, free of development costs. The viper was even the brainchild of shelby to begin with, so they get that connection free as well.
Michael D, @ Mar 31st 2008 2:19PM
This would be a bad move and bad for Chrysler's image and respect. The Viper is not a redundant model, and it could be possible that assembly could take place in another plant instead of a stand-alone. Also, with the three brands eventually going into one dealership, the Viper halo would help all the more! Of course, the Challenger could compliment it as a more affordable halo.
Of course, no one would care if redundant models such as the Jeep Compass, or a vanilla econo-box sedan got the axe.
RobAFromNC @ Mar 31st 2008 3:08PM
Ford's halo car is the GT. They don't need the Viper...
Throwback @ Mar 31st 2008 2:20PM
Unfortunately the time has come for the Viper to ride off into the sunset. Chrysler's problems are so huge they need to focus on building better vehicles and can't waste time on low volume cars like the Viper.
havoc @ Mar 31st 2008 2:21PM
let's get back to basics here, and stop badge-engineering (which is what they want to do).
dodge just has too many models in it's own line-up that compete with each other.
the viper is not a cash-cow, and is not iconic like the vette. maybe they can bring the viper back with multiple offerings to make it a more common model, how about a large displ i6, a turbo i6 and the top dawg (how about a boosted hemi?). sure that takes away from some of the prestige from it, but allows consumer who like the styling but don't want to (or can't afford to) pay the 70k.