The Italian crew that's now calling the shots at Chrysler made it official today: the Dodge Ram truck brand is being split away from the Dodge car brand to better focus each brand. Also announced were several changes to upper management.
"This reorganization will allow us to protect and develop the unique nature of the product offerings within the Dodge brand," Chrysler/Fiat CEO Sergio Marchionne said in a statement.
The new brand strategy strips the Ram trucks away from the Dodge brand and will use the Ram name on a number of consumer- and work-oriented vehicles believed to include light- and heavy-duty trucks, SUVs and cargo vans. The Dodge brand, meanwhile, will keep the Caravan and be refocused to better concentrate on performance cars. The split also gives management the ability sell or kill either brand separate from the other should financial circumstances require it. The Ram brand will be run by the head of Chrysler's Denver business center, Fred Diaz Jr., who will also take over as lead sales executive for the U.S.
Along with the brand shake-up, Chrysler-Fiat also announced some changes to its upper-management, surprising in that some of the positions were just filled a few months ago. First to go was Michael Accavitti, whom Marchionne had promoted to head of Dodge back in June when Chrysler emerged from bankruptcy. While Accavitti leaves "to pursue other interests," his responsibilities will be split between Diaz Jr. and Chrysler's Vice President of Design, Ralph Gilles, who will now run the Dodge car brand in addition to his duties as design chief.
Also out is Chrysler brand president and CEO Peter Fong, who resigned for personal reasons. Fong has been replaced by Lancia brand chief Olivier Francois, brought over from Fiat Group by Marchionne. Like Accavitti, Fong was named Chrysler brand chief by Marchionne back in June after Chrysler exited bankruptcy.
What do you think of Chrysler/Fiat's new brand strategy? Is splitting off the Ram truck brand the right move? Have your say in the comments below.