Tuesday, January 16, 2007

Chrysler's grand minivan plan - Want a short wheelbase? Go crossover.

By offering its 2008 minivans in only one size, Chrysler is opening the door for two different crossover vehicles.

By RICK KRANZ & BRADFORD WERNIE | AUTOMOTIVE NEWS

AutoWeek | Published 01/15/07, 11:17 am et
DETROIT - The Chrysler group is betting that new crossover models will woo minivan buyers now that the automaker is dropping short-wheelbase minivans.

Industry sources say the automaker will offer two mid-sized crossovers, developed on its new front-drive Chrysler Sebring and Dodge Avenger platform.

The sources say the Dodge crossover is due in December and will be assembled in Chrysler's Toluca, Mexico plant, where the PT Cruiser is made. The Chrysler crossover will debut either in late 2008 or 2009. Frank Klegon, executive vice president of product development for the Chrysler group, said "in the future you will see some other things from us" that offer minivan-like utility. He declined to provide details.

Jeff Schuster, executive director of global forecasting at J.D. Power and Associates, said the new crossovers will not have sliding doors. Minivan owners typically list sliding doors as a favorite feature.

But Schuster called Chrysler's shift from small minivans to crossovers a solid bet.

"I think (Chrysler) can fill that need with another product that has a bit more of a design or style to it," he says. "I think you can fill the need essentially without sliding doors."

The restyled, re-engineered 2008 Chrysler Town & Country and Dodge Grand Caravan debuted at the Detroit auto show. Sales begin this fall. One size will be offered, a model 2.0 inches longer than the 2007 long-wheelbase model.

The decision to drop the smaller minivan is a significant shift for the company that invented the minivan. Chrysler has offered short- and long-wheelbase models since 1987, with its best year in 1996 when 538,807 minivans were sold.

Last year, the automaker sold 370,245 minivans. The company said 24.6 percent had short wheelbases.

Industry sources cite several reasons for Chrysler's decision to abandon the smaller model. The short model's structure prevents the popular Stow'n'Go seats, introduced in 2005. Also, sales of the short-wheelbase minivans have been declining.

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