Dodge Challenger Niche is Strong E-mail
Written by Tim Beggs   
Monday, 01 May 2006

Dodge Challenger

The Chrysler Group feels the business case is too strong to ignore for turning the Dodge Challenger concept into a reality. The plan, as it stands now, is to have (market) segmented volume, a V8 HEMI powerplant, and a price tag just above the Ford Mustang. Despite concerns about rising fuel prices, Joe Eberhardt (Executive Vice President of Global Sales & Marketing) feels the concerns are “a factor in a lot of our discussions. I wouldn't say (that) with Challenger because that is going to be a car probably for the enthusiast - probably a second or third car, probably not competing with everyday transportation." Eberhardt continued.

Sizing Up

In contrast to the competition, such as the Ford Mustang (which offers a range of models and powertrains), the Dodge Challenger concept will rely on V8 engines.  Putting the Challenger on the road with a moderately-high displacement V8 may be tough, as the sales data from Ford’s Mustang last year shows that just 30% of the 161,000 Mustangs sold were powered by a V8.  Tough to ignore the facts and even tougher to determine where the market will go.

The decision is not yet final for a “go” yet, as Chrysler currently lacks production capacity at its Brampton, Ontario plant, where the Challenger would be built alongside the Chrysler 300, Dodge Charger, and Dodge Magnum.  While not having to create a new production site is a positive for the prospective Challenger, squeezing it into the production mix may be a hitch in the process.  It won’t be a large snag, however; the Challenger is designed to share the same platform as its siblings and won’t be a large-scale model in terms of units produced.

Go or No?

"Emotionally, we are all there; we all say (let's build it) tomorrow," Eberhardt said. "But sometimes you've got to sit back and put a lid on your emotions and say, 'OK, is there a sustainable business case?' Or is it going to be another one year hot and then demand trails off fairly quickly?  I think we are fairly comfortable now that we have found a formula where we think we can sustain it" profitably for several years, said Eberhardt.

The demand is there, Joe.  No wait, it’s here.  You can almost hear the voices whispering, “If you build it, they will come."


 
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