Small Cars Lose Ground In Changing New Car Market

Does it seem to you there are fewer small sedans on the new car market these days? That’s because there are. “Americans are finally figuring out what Europeans have known for years, that hatchback style vehicles are more efficient in space and storage,” says Dave Sullivan, an industry analyst with AutoPacific. “That’s why a Buick Encore (crossover) can sell so well and a Buick Verano (subcompact) does not.”

In 2010, passenger cars were 52% of the market while light trucks and SUVs were 48%. Today, as gas prices have tumbled to historic lows, the new car market for passenger cars is down to only 43% of sales while trucks and SUVs have soared to 57%. Chrysler just announced that it will discontinue the Dodge Dart and the Chrysler 200, as it pumps up production of Jeeps and Dodge Ram trucks. In January, 80% of FCA sales were light trucks and SUVs, the highest percentage in the industry.

How can Chrysler afford to do that? Doesn’t it have to worry about meeting tighter government fuel economy standards?s Actually, those standards encourage  companies to build less fuel efficient vehicles. There is a built in fudge factor called the “footprint adjustment” that lowers the standards for less efficient models but increases it for more efficient models. Translation — the more gas guzzlers you sell, the lower your CAFE number needs to be.

“Each manufacturer has a different target, John Graham, dean of Indiana University’s School of Public and Environmental Affairs, tells the Detroit Free Press. “If you sell more small cars, you have a stricter target.” Tell me this isn’t a government operation. The rules are set up to provide a disincentive to complying with the rules! Beautiful.

Toyota has just announced it is shutting down its Scion small car division. What Scions remain on dealer lots will now be rebadged as Toyotas, which of course they are anyway. Scion had its best year in 2006, when 173,000 were sold. In 2015, Scion moved a mere 56,157 cars.

Will other manufacturers also pare back their small car offerings? Light trucks and SUVs are the most profitable vehicles. Companies often barely break even on small cars. Given a choice, the outcome is obvious. And that sets up a coming conflict between making profits and pleasing regulators.  Chuck Stevens, GM’s chief financial officer, states the dilemma clearly. “We continue to re-evaluate how we deploy capital, where we deploy capital in order to drive appropriate returns across the business. How do you effectively deploy capital in those segments with lower margins like small cars and compact cars?”

The car companies are already pressuring the California Air Resources Board to loosen its highly restrictive mandate that calls for 10% of all cars to be zero emissions in a few years.  In 2017, the National Highway Traffic Safety Administration will seek public comment on whether the fuel economy standard should be revised for model years 2022 through 2025, John Graham says. A decision on whether to change the 54.5 mpg target is expected in early 2018. Of course, by that time, a new president will be sitting in the White House and the membership of the US Congress may have changed significantly after the national elections this November.

Every job in the auto industry creates many more jobs in industries that support it. If the car companies suffer shrinking sales, the national economy will be impacted directly. Will politics play a role in future emissions and fuel economy standards? Oh, you betcha.

“The industry is trying to build what people want while still complying with what the government says they should build,” says AutoPacfic’s Sullivan. “Right now, however, regulator and consumer demands are pulling in opposite directions. Now, if someone wanted to stand up and propose a higher gasoline tax, that gap might be smaller.” Hmm, isn’t that what Obama just did in his new proposed budget?

For electric car advocates, one of the factors holding back the proliferation of EVs is the decision by manufacturers to make most of their electric offerings small sedans — precisely what the public doesn’t want. Tesla is predicting great things for its coming Model 3 but that, too, will be a small sedan. Chevrolet, at least, has made its new Bolt a crossover SUV style vehicle, but even it is barely bigger than the sub-compact Chevy Sonic.

Weight is the issue. Bigger cars need bigger batteries. Bigger batteries mean higher prices. Bob Lutz has gone on record as saying the market for electric cars is “super lousy” right now, mostly because people want larger cars and are not worried about how much they cost to fill up at the pump. Who is going to win the contest between lower emissions and profits? At least for the moment, emissions seem to be losing the battle — and the war.

Dodge Dart, Chrysler 200 Get The Heave Ho From FCA

The first rule of business is to give the customers what they want. Right now, when gasoline costs less than Pepsi, what customers want are trucks, Really big trucks, the kind of heavily muscled, in your face trucks that make you feel you are in your own version of Mad Max as you commute to work every day. Such trucks are also excellent for picking up some finish nails at Home Depot or a quart of milk on the way home. People are also crazy for all sorts of SUVs — the bigger the better.

What people are not so crazy about are sedans. 4 door transportation modules are just not cool right now. Fiat Chrysler’s profits fell 40% last year, according to the Detroit Free Press. FCA boss Sergio Marchionne blames a lot of that on poor sales of its Dodge Dart and Chrysler 200 sedans. So he has decided to throw them overboard and let the FCA banner be carried forward solely by trucks, SUVs, and assorted Jeep products. The only sedan Chrysler will sell from now on is the 300.

During a conference call with Wall Street analysts on Wednesday, Marchionne said, “There will be a number of things that will be put in place in the next 18 months — things that have been agreed and detailed, that will effectively withdraw the Chrysler 200 and Dodge Dart from the marketplace, for a long period of time, during which we will be continuing discussions with potential partners. We have decided to de-focus, from the manufacturing standpoint, to de-focus on the passenger car market. There are two cars in particular, the Dodge Dart and Chrysler 200, which will run their course,” Marchionne said “Without creating additional capacity, in the United States, we need to … to try and deal with the development of both Jeep and the Ram brand.”

Part of the reason for this is that FCA has run out of factory space to build all the trucks, SUVs and Jeeps the market wants. Those vehicles make a lot of profit, sedans only make a little profit. The choice was easy; the sedans had to go. Marchionne has hinted they might return if someone else wants to build them. Both cars have gotten good reviews and won praise for their excellent styling. The news surprised investors. FCA spent $1 billion to overhaul its Sterling Heights Assembly Plant to build the Chrysler 200 midsize sedan that just went on sale in 2014. It also spent $600 million to launch the Dodge Dart compact car in 2012.

My old Irish grandmother would wonder whether Chrysler is cutting off its nose to spite its face. Yes, the market for trucks and SUVs is red hot at the moment, but what happens when the famously mercurial tastes of consumers change? And how will FCA make a fleet composed solely of behemoths comply with upcoming fuel economy standards? No doubt, Machionne, in his infinite wisdom, has a plan, but what it is remains a mystery.

Alfa Romeo Giulietta Gets New Diesel, Could Dodge Dart As Well?

The Alfa Romeo Giulietta has added a powerful new 2.0 liter turbodiesel engine, and corporate cousin the Dodge Dart should be in line for a diesel as well. With the success Chrysler is having with the sales of other diesel models, an efficient and torquey diesel compact could give struggling Dart sales a much-needed jolt. It’s a no brainer, but I’m not sure it’ll happen soon enough.

The Giulietta and Dart share the same platform and engines, though the trio of optional motors in the Dart seems redundant and unimpressive to most reviews. However, Chrysler and Fiat are committed to bringing diesel engines to America, and so far sales are mounting at an impressive rate. In the first three days of 2014 Ram 1500 sales, over 8,000 orders for the new EcoDiesel model were placed. A 28 MPG highway rating in a full-size pickup can do that.

From the sounds of it, the new 2.0 liter turbodiesel in the Alfa Romeo Giulietta has everything the Dart needs; 173 horsepower, 258 ft-lbs of torque, and fuel economy over 53 MPG on the European testing cycle. In America it’d work out to more like 45 or 46 MPG, which would put the Dart at the top of the compact heap in terms of fuel efficiency, and it’d also be among the most powerful compact cars as well. Right now the Dart’s most powerful engine is a 1.4 liter MultiAir turbo engine delivering 160 horsepower and 184 ft-lbs of torque, which just doesn’t make for a very fast ride. 0 to 60 MPH in the fastest Dart takes  about 8.2 seconds, while the turbodiesel Giulietta manages the same sprint in just 7.8 seconds.

But if Fiat’s plans to bring Alfa back to America after decades of absence goes through, the Dart might be starved out while the Giulietta gets all the good stuff. There’s been no mention of a Dodge Dart SRT, nor of adding a diesel engine under the hood. I mean, it makes sense to me, but what do I know? I’m just one of those people with a bull’s eye on my back that the Dodge Dart marketing can’t seem to hit. And forget anything electric; the only EVs Fiat is building are the ones it has to build.

LED taillights and big touchscreens are nice, no doubt, but I’m one of those rare fools who gives a damn what’s under the hood. The Dart is a good looking car to me, but it lacks the oomph to back up its sporty styling, and there’s an awful lot of overlap between the three optional engines. A torquey, efficient diesel would help the Dart stand out in a crowded segment, and it sounds like the kind of cake I could keep and eat at the same time. Ya dig?

Source: Alfa Romeo

2013 Dodge Dart Aero offers up to 41 mpg highway at MSRP of $19,295

Chrysler’s Dodge brand will launch its newest, most fuel-efficient Dart model, the Dodge Dart Aero with a starting USManufacturers’ Suggested Retail Price (MSRP) of $19,295 (excluding $795 destination).

Powered by the 1.4-liter MultiAir intercooled turbo engine combined with several aerodynamic enhancements, including lightweight aluminum chassis components, active grille shutters, underbody aero kit, a lowered profile and low-rolling resistance tires, the Dodge Dart Aero model achieves 41 mpg US (5.74 l/100 km) on the highway with the six-speed manual and 40 mpg (5.88 l/100km ) on the highway with the six-speed Dual Dry Clutch Transmission (DDCT).

The Dodge Dart Aero model also is packed with number of standard features, including 10 standard airbags, four-wheel anti-lock disc brakes, electronic stability control, cruise control, auto headlamps, air conditioning with micron filter, power windows and locks, power mirrors, remote keyless entry, leather-wrapped steering wheel with audio controls, projector headlamps and class-exclusive LED ‘racetrack’ tail lamps.

High-tech features, including the class-exclusive 8.4-inch touchscreen media center and 7-inch TFT reconfigurable gauge cluster, also are available on the Dodge Dart Aero.

Production of the Dodge Dart Aero model started at the Belvidere (Illinois) Assembly Plant in the third quarter of 2012. The basic 2013 Dodge Dart starts at a US MSRP of $15,995.

Sales of the Dodge Dart in the US were up 72% in September to 5,235 units, compared with the previous month of August. Year-to-date, the Dart, which went on sale in June, has sold 9,254 units.

Source: Green Car Congress

Dodge Dart will hit 41 MPG with available Aero Package

The Environmental Protection Agency hasn't released its evaluation data for the 2013 Dodge Dart just yet, but Chrysler says the compact should be capable of returning some impressive fuel economy figures, particularly with an available Aero package. When equipped with the turbocharged 1.4-liter four-cylinder engine and a manual transmission, the standard Dart is good for an estimated 27 mpg city and 39 mpg highway, thanks in part to active aero shutters nestled in the grille of every model. Should buyers require a few extra miles per gallon, an optional Aero package will see the highway figure jump to 41 mpg. So far, there's no word on city or combined fuel economy for the package, but there's time before the trim becomes available, as it won't be in dealerships until the third quarter of this year.

Chrysler isn't mentioning how much the Aero package will add to the bottom line or what other tweaks consumers will get for their coin. We do know that with 160 horsepower and 184 pound-feet of torque, the Dart Aero should be considerably more engaging to drive than the Chevrolet Cruze Eco. While that model is good for 42 mpg highway when equipped with a six-speed manual, it does the deed with 22 fewer horsepower and 36 fewer pound-feet of torque.


Source: Autoblog Green

Dodge Unveils Dart Compact, Promises 9-Speed Transmission, 40 MPG

I’ve often wondered aloud just how Chrysler plans to meet the 2016 fuel efficiency goals. They don’t have a single hybrid or EV in their lineup, and their aging compact, the Caliber, is inefficient and outdated compared to the crop of modern compacts that has inundated the market. Yesterday though Dodge revealed teaser shots of its new compact, called the Dart, which will have a 9-speed auto and get upwards of 40 mpg.

It has been rumored for months that the Alfa Romeo Guilietta would underpin a new Dodge compact car (Fiat owns Alfa.) The pictures and press release confirms that, and adds other details like engine options. A 1.4 liter turbo joins a 2.0 lite engineer and 2.4 liter engine, the latter two codenamed “Tigershark.” Fiat CEO Sergio Marchionne also announced the Dart would be eventually offered with a 9-speed automatic transmission that would boost the Dart’s MPG numbers well into the 40’s.

I’d also like to add that I love the name choice. For me it rekindles images of the rear-wheel drive Dodge Dart of the 60’s, though the name has been out of circulation for over two-decades. The new Dart will be front-wheel drive, but could offer AWD and up to 232 horsepower, in addition to the 9-speed automatic transmission.

So are transmissions the crux of Chrysler’s plans? The new Chrysler 300 will be getting an 8-speed automatic transmission that will deliver up to 31 mpg with the V6 engine. That’s pretty good for a full-size sedan, and the Dart holds a lot of promise (depending on what the whole picture looks like.) However, the 9-speed auto won’t be available until later on; when production begins, the Dart will offer a six-speed double clutch automatic.

But it isn’t even close to enough. Chrysler is toying with the idea of a hybrid 300 as well, but the Dart is going to face some stuff competition in the compact segment. But if it looks good and delivers an efficient, spirited driving performance, it could rise to the top of the pack. Chrysler really needs a winner in this segment; does the Dart have what it takes?

Source: Gas2.0