The company already announced that it would produce only one of the vehicles, which share a common architecture, going forward. But Chairman and CEO Sergio Marchionne had previously suggested the Caravan would be the one getting the bullet in 2014.
Now, Marchionne has told Automobile magazine that production of the Dodge version will continue at the company's factory in Windsor, , while the Town & Country will be replaced by a new Chrysler crossover. The decision was confirmed Tuesday by a company source.
Marchionne decided to keep the Caravan because it was the first minivan, launched by former Chrysler boss Lee Iacocca himself in 1983. Since then, minivans have gone from being heralded as utilitarian phenoms to the much-maligned butt of many jokes. But these successors to the station wagon remain prized by the Pampers and playdate set.
"Frankly, when you have a family, there are few alternatives that have the utility of a minivan," said Aaron Bragman, senior analyst at IHS Automotive. "You can't push a button and open the rear doors on a crossover like you can on a minivan. It's a big market still."
In fact, 472,398 minivans were sold in the United States last year.
And while other automakers — notably Ford Motor Co. and General Motors Co. — replaced their minivans with more curvaceous crossovers years ago, Chrysler has remained a major player, vying with the likes of Honda Motor Co. and Toyota Motor Corp. for dominance in the segment.
Dodge and Chrysler combined sold 200,000 of their minivans in 2011: 110,862 Caravans and 94,320 Town & Countrys.
"I don't really see an advantage one way or another, but there is more upward room with a crossover," Bragman said, adding that creating a new Chrysler crossover probably makes more sense as part of Marchionne's global strategy.
He is also the head of Fiat SpA, which includes the more upmarket Lancia brand. And Bragman sees some real opportunities there.
"The international market for the minivan is limited. Having a larger crossover, on the other hand, could be an advantage — particularly for Lancia. They are looking at it on a global stage."
BY BRYCE G. HOFFMAN THE DETROIT NEWS
http://www.detroitnews.com/article/20120530/AUTO0101/205300322#ixzz1wPI8sShc
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