Chrysler drops plans for Dodge Journey clone

The 2009 Dodge Journey will stand alone. While domestic crossover SUVs are typically spun into multiple versions for different brands, Chrysler has decided to cancel an upcoming clone of its new family hauler in order to devote more resources to moving its lineup toward smaller, more fuel-efficient vehicles.

A little over a month ago Chrysler president Jim Press said that the company only needed around half of the eleven SUVs currently in its lineup. Recently plans have been announced to drop the Pacifica, and reports are that the slow-selling Jeep Commander will be put down in mid-2009. Press also indicated that the automaker would like to consolidate its brands into single dealerships, meaning that badge-engineered versions of the same vehicle would have to be ditched to prevent cannibalization of sales betwen brands. Despite this, plans to launch a Chrysler variant of the Journey in 2009 were well underway until the company's Cerberus management pulled the plug.

Beyond avoiding needless competition, the main reason the Chrysler crossover got canceled was money -- cash saved from the project is going into the design of a new compact car that Nissan will build through a deal between the two companies. Chrysler is hoping to have the new fuel-efficient car ready by 2010, and is putting all its efforts into the project.

Though Chrysler's move will help bring its lineup more in line with consumer tastes now that gas has reached $3.70 a gallon, it poses a problem in the short term -- namely a lack of new products. The Challenger and Journey are already on sale, and beyond those vehicles only an upgraded Sebring and new Dodge Ram are set to launch during the entire 2009 calendar year. 2010 is scheduled to see the introduction of a new Jeep Grand Cherokee, Dodge Durango, upgraded Charger and 300 sedans, and the Nissan-built compact, but until these new models arrive attracting customers won't be easy.

While the new products are in development, Chrysler plans to work on improving its current model lineup as well. The automaker has already invested $500 million in over 400 small upgrades since it was acquired by Cerberus, and more tweaks and fixes may be due over the coming year. Currently around 70 percent of Chrysler's sales come from SUVs and trucks, and as the large vehicles quickly lose popularity and value it's clear the automaker's lineup needs to change. Better times should lay ahead for Chrysler by 2010, but the question is whether parent-company Cerberus is willing to wait that long for things to improve.

Source: Bloomberg News