Officially Official: Dodge splits off Ram brand with new exec appointments
Former Dodge CEO and marketing boss Michael Accavitti is leaving Chrysler to pursue other activities, and the marketing group will now report to Francois. The Ram side of the business now falls to Fred Diaz Jr. (right), who also takes over the sales reigns from Fong. Product design SVP Ralph Gilles (left) now also has responsibility for Dodge cars. Got all that?
The automaker's car and truck units were apparently split in order to "... protect and develop the unique nature of the product offerings within the Dodge Brand," although it's not exactly clear what is meant by this. In any case, you can try to make further sense of the moves by checking out the official press release after the jump.
[Source: Chrysler]
PRESS RELEASE
Chrysler Group LLC Announces New Appointments
Auburn Hills, Mich., Oct 5, 2009 -
Chrysler Group LLC today announces brand and commercial organization changes.
"The brand-focused strategy has been refined further with the unbundling of the Dodge Brand which now consists of the Dodge RAM Brand and the Dodge Car Brand organizations. This reorganization will allow us to protect and develop the unique nature of the product offerings within the Dodge Brand," Mr. Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC said.
Fred Diaz Jr. is appointed President and CEO, Dodge RAM Brand with profit and loss responsibility for the Dodge RAM product portfolio. Mr. Diaz will also be the lead executive for the Sales organization in the United States. He was previously the Director of the Denver Business Center. Mr. Diaz has been with the Company since 1989 in positions of increasing responsibility. The Company will announce Mr. Diaz's replacement with a separate announcement.
Ralph Gilles is appointed President and CEO, Dodge Car Brand with profit and loss responsibility for the Dodge Car product portfolio. Mr. Gilles will continue to lead the Product Design organization of Chrysler Group which he joined in 1992.
Olivier Francois is appointed President and CEO, Chrysler Brand, with profit and loss responsibility for the Chrysler product portfolio. Mr. Francois joins the Company from Fiat Group Automobiles where he serves as head of the Lancia Brand, a position he retains. Mr. Francois will also be the lead executive for the Marketing organization with responsibility to coordinate worldwide marketing strategies, brand development and advertising for the Chrysler, Jeep®, Dodge Car and Dodge RAM brands. He will continue to lead these functions within Fiat Group Automobiles. Mr. Francois joined Fiat in 2005.
Michael Manley will continue as the President and CEO, Jeep Brand with profit and loss responsibility for the Jeep Brand product portfolio. Mr. Manley will also be the lead executive for the international activities of the Company outside of NAFTA and will be responsible for implementing the co-operation agreements for distribution of Chrysler Group products through Fiat's international distribution network. Mr. Manley has been with Chrysler since 1998.
Joseph Veltri joins the Management Team as Head of Product Planning. Mr. Veltri started with the Company in 1988. His career has included positions in product planning, marketing, business strategy, and finance. He served most recently as Product Planning Lead and Head of Truck/SUV Planning.
Peter Fong, head of the Chrysler Brand has resigned for personal reasons. Michael Accavitti, head of the Dodge Brand has resigned to pursue other interests.
About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep®, Dodge, Mopar® and Global Electric Motors (GEM) brand vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler's culture of innovation – first established by Walter P. Chrysler in 1925 – and Fiat's complementary technology – from a company whose heritage dates back to 1899.
Headquartered in Auburn Hills, Mich., Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Dodge Ram. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.
Reader Comments (Page 1 of 4)
jv2k 11:03AM (10/05/2009)
And Chrysler needs to mark it's trucks as a totally separate brand from their cars why?
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jamie 11:16AM (10/05/2009)
Because it adds more costs to the balance sheet;
and if there are more costs,
then prices have to go up to cover the projected shortfall;
and if prices have to go up
it is likely profits will increase.
:)
geo.stewart 11:25AM (10/05/2009)
so that Dodge cars can die off in 5 years, replaced by Fiats.
Jeep, Fiat, Dodge truck, and maybe Chrysler.
MY question is ?Why are they separating cars from their trunks? Is this to lower weight and increase fuel mileage to meet CAFE regs? inquiring minds want to know
"The automaker's car and trunk units were apparently split in order to "... "
Throwback 11:29AM (10/05/2009)
geo, you have got it. The Chrysler brand is dead. Dodge/ Ram will be trucks and Jeep will be Jeep. This way Fiat can more easily dump these brands if they don't recover. Ram can be sold (pick-ups will always sell in the USA). Dodge brand will simply fade to black or become to Fiat what Vauxhall is to Opel. No matter what happens Fiat comes out the winner. Have they put a dime into the new company yet?
yosh 11:40AM (10/05/2009)
I think you're both wrong. Chrysler isn't going anywhere, Fiat wants to take it upmarket. Note that Chrysler has never tried to manufacture expensive cars. Their unwritten credo has always been to create very good cars that are also affordable. I think despite what Fiat says, that's going to continue.
Say what you want about the pentastar, but it's always been the most innovative of the three big american brands. It's a shame they've been crippled by bad management and pillaged by greedy/selfish owners.
I think the Dodge split is the best option available. The ram and car divisions need to be split but each one is tied to so strongly to the Dodge name. So who do you give it to? Iconic dodge cars (challenger?) or the badass Dodge Rams? Both, apparently.
Tool 12:25PM (10/05/2009)
I don't know about you guys but this whole Ram brand idea and matrixed responsibility scheme sounds like a complete cluster f*ck to me.
John H. 1:54PM (10/05/2009)
Why?
So we can start the deathwatch for the Dodge brand.
Does anybody imagine that Fiat bought the Chrysler dealer network to keep Dodge around as a competitor...
BigWill 3:43PM (10/05/2009)
It's a good thing they're clearing this up. Because there are sooooo many people that go to a Dodge dealer to buy a Ram 2500 and leave with a Caliber.
Matt 1:36PM (10/06/2009)
It's obvious Dodge wants to kill off it's cars, which is fine by me - the Charger is attractive yet dated, and the Challenger is excellent but can't sustain a brand by itself.
In other words - the only good thing to come out of Dodge is it's trucks. :)
ack154 11:05AM (10/05/2009)
*facepalm*
Along with jv2k up there... WHY? Seems like just another case of trying to solve a problem no one has.
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Zerk 11:06AM (10/05/2009)
Preparation for the dismembering of Chrysler has begun!
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tbss_in_the_D 11:07AM (10/05/2009)
This for when they start selling off the divisions...
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Avinash machado 11:07AM (10/05/2009)
So will there be a Ram Durango,Ram Dakota etc? What about the Ram itself? Maybe they could call it the Ram Ram.
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Jimothy 11:16AM (10/05/2009)
And don't forget the Ram Bam Thank you Ma'am.
The Other Bob 3:16PM (10/05/2009)
Yes, which seems to mean is the real point. The Ram brand is better than the Dodge brand.
Tourian 5:39PM (10/05/2009)
They didn't say "Ram" brand they said "Dodge Ram" and "Dodge Car" so the name Dodge still applies.
jimboy45 5:47PM (10/05/2009)
Because the division has become too big! You cannot handle that much product under one brand. Makes perfect sense to spin off the truck line as it's own entity like GMC.
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montoym 7:09PM (10/05/2009)
Ford seems to do fine selling cars and trucks, as does Chevy, same with Toyota. All 3 also have more models within those brands than Dodge has as well.
Let's see, Dodge has 12 models(counting the Ram 1500 and it's HD counterparts together).
Chevy has 15 models and Ford has 14 models, and Toyota has 17(16, if you count the Camry and Camry Solara together).
GMC is a cop out in a way, it wouldn't exist without the rest of GM and Chevy sells largely the same models(in higher numbers as well). Compare Dodge to other full-line automakers, then we'll talk.
jimboy45 11:08AM (10/07/2009)
If you think about it, this way makes much more sense from a marketing and brand recognition sense. The truck division will be Dodge Ram / cars will be Dodge cars. You don't buy a Ford truck you buy an F-150, or a Silverado, or a Tundra. The old ways ain't working anymore, haven't you noticed?
Francis 11:12AM (10/05/2009)
Will there be a separate brand for the Sebring too?
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