Positioning Chrysler as a mainstream OEM brand will be a change – heretofore Chrysler had been a mid-level make, a la Buick, with dreams of even being a luxury make going up against Cadillac or Lincoln. To be re-positioned as a mainstream make, Chrysler will need a broader product portfolio and these products will need to be priced competitively with those from other mainstream brands, including Ford and Chevrolet. This certainly can be done but it will take a while as customers' perceptions of the brand will need to be changed (as opposed to reinforced as in the cases of Jeep and Dodge).
Two other thoughts come to mind. One is that the brand positioning strategy laid out by Mr. Marchionne in the Wall Street Journal article implies the company will not offer a brand in the luxury market other than the niche Alfa Romeo. This is actually in keeping with other thoughts he mentions, including that "I don't want to conquer North America. I only want a share." But one benefit of a high-end brand is its profits, which can be used to fund product programs company-wide. Without these profits, which Chrysler's competitors currently enjoy, Chrysler will need in the long-run to find other sources for funds for product programs.
Lastly, as mentioned in the same Wall Street Journal article by Mr. Ingrassia, it is no secret that Chrysler has struggled in vehicle quality as measured by both J.D. Power and Associates, and Consumer Reports. If Mr. Marchionne wants to widen the universe of shoppers for each of the six current and upcoming Chrysler brands, it might make sense to improve the company's quality image to attract some owners who currently pass by Chrysler dealerships on their way to Asian, Ford or GM stores.
Posted by Tom Libby, PolkInsight Advisor, Polk (07.21.2010)
Even though the automotive industry has experienced exceptional turbulence in the past few years, some things have not changed all that much. One of these is the propensity of males to purchase certain types of vehicles and females other types. Men, who still comprise more than half the new vehicle buying population, remain the dominant purchasers of pickups (all sizes) and high-end vehicles in the luxury market. Four of the five segments with the highest percentage of male buyers three years ago are also among the top five this year. (The data address actual purchases, and do not reflect who influenced the purchase decision.)

The target customer for the new Ford Fiesta is described as "youthful, active and media-savvy." Who knew that would be me – an over-50 Gen X'er with two college age kids? I think Ford will find that there are many of us out here --- environmentally-friendly, economical, who no longer need room to car-pool or carry hockey or soccer gear!


Look at the adjacent chart. While these brand group market shares represent only part of 2010, they are very typical of the annual sales mix for Asian, Domestic and European brands selling in the U.S. The shares are pretty stark as you move westward from NY to LA. And if I showed you Washington D.C. and many other "coastal" metro markets, the import brands typically have dominant shares.
So, who's winning in this segment? Well, it depends. It depends from what perspective you view the segment. If you look at the individual models in the segment, there is no contest. The BMW 3-Series is the segment sales leader, and has been for many years. Registration data for the first four months of this year show nothing has changed - the 3-Series leads its nearest rival, the Infiniti G, by more than 10,000 units April 2010 CYTD, which equates to a 30,000+ unit gap through twelve months. The 3-Series has attained this leadership role through, among other things, coming in several different body types, offering a wide choice of powertrains, offering the exhilarating M3 performance version, creating over the years a huge owner base, offering attractive lease terms, and frequently being re-styled. Through all these actions, BMW has infused the 3-Series with the image and stature that are the envy of the luxury market. Many 3-Series competitors claim they are better than the 3-Series on one or more attributes (which in and of itself promotes the 3-Series), but there is only one 3-Series.
Hyundai wants you to have an 








