Chrysler's Future Rests on Global Platforms

Washington DC March 10, 2010; The AIADA newsletter reported that according to The Detroit News, under new leadership, Chrysler is beginning to following the industry trend of fewer, larger, more global platforms for its vehicles.

The strategy improves quality, allows the cost of engineering to be spread over more vehicles, and allows new cars to be brought to market faster.

Chrysler comes late to the strategy, but CEO Sergio Marchionne insists the change must happen fast. He has said a single platform must yield 1 million vehicles to be profitable, and his desire for scale led Fiat to a partnership with Chrysler. Click here for a chart showing consolidation of Chrysler/Fiat platforms.

Marchionne was reportedly dismayed by the number of platforms Chrysler was previously using, many of them the basis for relatively low-volume vehicles. To remedy this, future new vehicles for Chrysler and Fiat will come from the kind of big, global platforms successful automakers such as Honda Motor Co., Toyota Motor Corp. and Volkswagen AG are employing.

Chrysler's 11 unique car platforms will be condensed into five by 2014. Additionally, Fiat will provide two small car platforms, an area where Chrysler does not even compete today, to bring the total to seven.

To read more about Marchionne’s plans to consolidate Chrysler’s vehicle platforms in order to improve global sales, click here