As Chrysler Group LLC readies its new entry into the hotly contested compact car segment, the company is hoping to stand out from the crowd by allowing its customers to make their 2013 Dodge Dart different from all the rest.
The Auburn Hills automaker is eschewing the menu of option packages most car companies offer in favor of an à la carte approach that allows customers to configure their car their way. Want a manual transmission with an orange leather interior and a navigation system? No problem.
"We've got over 100,000 different ways to configure and personalize the Dodge Dart," said Richard Cox, Dodge brand director. "We've unbundled a lot of options to make it easier for customers to get exactly what they want."
Chrysler is responding to a broader societal trend. Consumers — particularly the younger ones car companies covet — want to put their personal stamp on the products they own. Think cellphone cases and laptop covers.
Cox said the company's market research shows these consumers want to be able to do that with their cars, too. And by allowing them to tailor their Dart their way, Chrysler hopes to give consumers another reason to buy it.
"Today, everyone is competing on fuel economy, price and reliability. We've got all those things, too. But we need to add to that," Cox said. "We haven't really been competitive in the compact car segment for a while. We need to give consumers a reason to give us another chance."
Chrysler's approach is a marked contrast to the streamlining strategy pursued by rival automakers such as Ford Motor Co.
When CEO Alan Mulally came to Ford from Boeing Co. in 2006, he was dismayed to discover how many variants were possible with each of the automaker's products. The 2007 Ford Mustang, for example, was available with more than 16,000 color, upholstery and feature combinations — and that was just the V-6 Deluxe model.
Instead of an opportunity to play to each customer's unique tastes, Ford's CEO saw this as costly complexity that contributed to the company's quality woes. So he ordered a radical simplification of Ford's offerings. The next version of the Mustang offered 200 of the most popular combinations.
But Ford recently was criticized for offering a manual transmission only on its base Focus, forcing customers to choose between a stick and a leather interior. It later reversed that decision.
Japanese automakers such as Toyota Motor Corp. and Honda Motor Co. practiced this sort of discipline for years. Critics sometimes complained that it made their cars boring, but there was no arguing with their quality. On the other hand, European carmakers have made an art of customization, said Jay Baron, president of the Center for Automotive Research in Ann Arbor.
"It's an issue of complexity. This will clearly affect costs and complicate the supply chain and logistics," he said. "Ford has been trying to simplify and reduce their investment costs. That greatly simplifies logistics, too. But it's always a trade-off between lower costs and customer satisfaction. There are different schools of thought, and don't think one is right."
Chrysler understands the challenges, Cox says, adding that the World Class Manufacturing system Chrysler inherited from its Italian parent, Fiat SpA, is up to the task. So is the Alfa Romeo platform the Dart is based on.
"Fiat was already doing this in Europe. They designed the car from the beginning to accept all these different features," Cox said, adding that automated parts sequencing — a system that delivers the required components to assembly workers just as they are needed — is another key to making it work.
But Fiat-Chrysler CEO Sergio Marchionne says managing customers' desires will be critical. The company might offer 100,000 buildable combinations, but that does not mean it will sell them.
"The market is going to get guided into a selection of those," he said during a conference call with analysts and reporters Thursday, adding that it would be "a bloody nightmare" to actually build 100,000 different Darts. "We will guide the dealer network toward an established set of alternatives."
Customers will be able to choose from one of those 100,000 different combinations, but they will have to wait 30 to 45 days. Marchionne suggested most instead would opt for the choices in their dealer's showroom.
Marchionne said the Dart is a critical product for his company — as important as the Jeep Grand Cherokee that has become the symbol of a resurgent Chrysler since its launch in 2010. And as with the Jeep, getting the quality right will be critical to repairing Dodge's damaged reputation with consumers. Marchionne said he is confident the Dart will do just that.
"If I told you that the launch had been a walk in the park, I would be lying," Marchionne said, adding that his designers, engineers and workers have created what he believes is a great automobile. "(But) until I see customers driving these things, I'm going to reserve judgment."
BY BRYCE G. HOFFMAN THE DETROIT NEWS
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