REPORT: Dodge Sprinter sales to cease as Mercedes opts to sell model itself with new diesel
2007 Dodge Sprinter – Click above for high-res image gallery
As much as Daimler has been hating on Chrysler lately, one would think that the Pentastar was the cold-hearted deviant who stuck a knife into the heart of the German automaker. The "Merger of Equals" turned out to be a bum deal for Chrysler, but at least it was able to procure some hardware from its German ex. Some parts of the LX platform that underpins the Dodge 300C, Charger and Challenger, and the platform that will underpin the next-generation Jeep Grand Cherokee and Durango all came from Mercedes-Benz, as does the excellent Sprinter van.
Though the Sprinter has been met with some level of success at select Dodge dealers, Mercedes has decided to pull the plug on Chrysler in 2010. About 350 dealers sell the Sprinter as a Dodge, and the large commercial van has managed sales of about 20,000 per year since it donned the Ram head in 2003. Mercedes is switching to 120 dealers branded Daimler Vans USA.
The updated Sprinter van, which will now be branded as a Mercedes, will receive a new 3.0L diesel engine that will reportedly be eligible for sale in all 50 US states. The Daimler dealers will reportedly be able to sell up to 18,000 vans per year, a sizable portion of the van's production quota of 32,000 vehicles per year. The remaining production will be sold as Freightliners. The commercial vehicle company has 45 specialized Sprinter van dealers across the nation.
Daimler says the reason for the switch has a lot to do with the fact that the vehicle is now established in the market, though one has to wonder if the German automaker is making an effort to further distance itself from its former step-child. The big losers in the deal could be the 350 Dodge dealers who spent $30-50K to upgrade their dealerships to sell and service the vans.
Gallery: 2007 Dodge Sprinter
[Source: Automotive News - subs req'd]
Reader Comments (Page 1 of 3)
Tael 11:07AM (9/02/2009)
whats with the AB password
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joborras 11:08AM (9/02/2009)
Dodge will get the Fiat Scudo van, and the Daimler stores will have a new tough competitor. This move is smart, since Daimler knows Fiat won't want to sell their product, and waiting to get "dumped" (as George Costanza will tell you) leaves you with no hand.
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Jimbo 11:22AM (9/02/2009)
I think they'll probably get the Ducato instead of the Scudo. The Ducato is more of a direct competitor to the Sprinter. But I could see them offering the Scudo as a way to carve out a niche in the marketplace. Both are already available in Mexico so they'll probably be imported from there as Dodges. It would also be nice if they would bring the Fiorano over to compete with the Transit Connect.
Richard 1:02PM (9/02/2009)
It looks as if the Scudo would be a pretty decent competitor to the Ford Transit, correct? If so, might they not get both?
jim 2:58PM (9/02/2009)
The Scudo could very well be the platform for next Chrysler mini van with the Ducato replacing the Sprinter.
RobM1981 11:11AM (9/02/2009)
Do we really think that Fiat's influence, $, and product will arrive in time?
The news for Chrysler seems to go from bad to worse, almost by the hour. Does anyone see a happy ending here?
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Olivier Parent 11:18AM (9/02/2009)
Time for VW to step in. They sell the same model as the Crafter. Its looks match Dodge much better than the Merc version. VW sells a rebadged Chrysler model so why not the opposite.
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dee ohlsone-taylor 4:50PM (9/02/2009)
I agree with u!! VW needs to bring the Crafter state side
Swede 11:18AM (9/02/2009)
Eek that nosejob reminds me of Michael Jackson
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Richard 11:20AM (9/02/2009)
As far as the hating goes, I never did see what Daimler was supposed to get from the merger anyway. Access to the Seabring? Puh-leaze.
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Jimbo 11:37AM (9/02/2009)
They got money. Daimler was not doing well financially, had an aging, outdated lineup and had misjudged the demand for Maybach. Chrysler was at its financial and creative peak, with the PT Cruiser about to launch and the 300 in development. Merging caused the market to go nuts and throw more money at them. Daimler sucked away all the development funds leaving only the 300, which had been shifted to using previous generation M-B components to save development costs, as Chrysler's sole bright spot for most of the decade. They didn't have the funds to develop a proper Neon or Sebring/Stratus replacement. They kept models like the PT Cruiser on the market well past their expiration date. And then Daimler split off Chrysler to Cerberus without giving leaving them any money to properly develop new models.
Chazz 11:44AM (9/02/2009)
It bugs the crap out of me that people are so mis-informed about the Diamler-Chrysler Marriage of "unequals." Jimbo is totally accuate in what he posted. The only thing Diamler wanted was the money in the bank.
Bloke 12:19PM (9/02/2009)
Chazz - the term "merger of equals" merely refers to two companies (of any size and worth) which dissolve to become one single company and the shares in the former individual companies are converted into new shares. That's all it means. The shares in the former companies are usually converted at different rates to reflect the difference in market values of those shares to begin with.
why not the LS2LS7? 12:23PM (9/02/2009)
It's referred to in the industry as the merger of equals to be ironic. Although it was structured as a merger, it operated far more as a takeover. Chrysler had little say in the direction of the final company, they took their orders from Benz.
Bloke 12:30PM (9/02/2009)
"Although it was structured as a merger, it operated far more as a takeover."
If you're familiar enough with mergers, you'll know this is often how matters operate in practice - irrespective of the industry involved.
Jim 12:44PM (9/02/2009)
Daimler caused most of Chrysler's problems yet managed to tar Chrysler with the blame. More like an abusive marriage than anything. "Baby, why do you make me hit you?"
why not the LS2LS7? 12:47PM (9/02/2009)
Bloke:
We're not talking about other cases here. We're talking about a specific case. Yes, in most cases one side takes the helm. But Daimler went well out of their way to play up how this was different, they would be equals. Presumably because they didn't want Americans to think Chrysler would no longer be an American company, but would instead be just an arm of Daimler.
But that's exactly what happened, thus earning (in my mind) plenty of reason for people to to use this facetious appellation.
Bloke 1:00PM (9/02/2009)
"Bloke:
We're not talking about other cases here. We're talking about a specific case."
Looks like I need to repeat myself. In practice, many aspects of a merger can resemble a takeover, especially the subsequent management gearing. Why you think this case should be any different is beyond me.
"Presumably because they didn't want Americans to think Chrysler would no longer be an American company"
Ah, so that's why you think this case should be different. Figures, since nobody else matters, eh?
"But that's exactly what happened, thus earning (in my mind) plenty of reason for people to to use this facetious appellation."
The merger could have paid dividends for Chrysler - their marques' international presence mushroomed under DaimlerChrysler - especially the Dodge marque which became global having previously only been known to North America and a few Latin American countries. However, apart from the Jeep line, the products were mostly lacklustre and interior trim crumbled to the touch.
Frank 1:55PM (9/02/2009)
Bloke,
Chrysler already had grown their European sales from almost nothing to over 200,000 units a year before Daimler molested them. And they had plant in Graz, Austria making mini-vans and Jeeps for the Euro market. The 300M, introduced in 1999, meaning in was developed before the takeover, was a "5 meter" car, meaning it would fit in Euro sized garages. It also had orange signal lights mandated in Europe. The Neon was first introduced at the Frankfurt auto show, not Detroit, and Chrysler had left and right hand drive versions of it available. Damiler actually stunted Chrysler's growth in the near luxury market in Europe, because it did not want competition with Mercedes. Instead they had to make do with Calibers!
Jimbo 2:07PM (9/02/2009)
Bloke: The Dodge brand didn't go global until 2006, just before Daimler sold off Chrysler to Cerberus. All models previous to that were sold under the Chrysler brand, which was global well before Daimler took over. So the argument that "their marques' international presence mushroomed under DaimlerChrysler" doesn't hold water.
""Presumably because they didn't want Americans to think Chrysler would no longer be an American company"
Ah, so that's why you think this case should be different. Figures, since nobody else matters, eh?"
Quit trying to sound like an arrogant prick. In no way was LS2LS7 making such a statement. The fact is, the U.S. government had to approve the sale and without convincing the American public that Chrysler would be at least an equal, the merger would never have been approved. I'm sure the German public had the same concerns that Daimler would be engulfed by Chrysler.
About the only good thing that came out of it for Chrysler is that the American public got used to the idea of Chrysler being owned by a foreign company. I think that helped make the Fiat takeover of Chrysler easier to accept.