Switching
its big car ranges from front to rear wheel drive could cost DaimlerChrysler sales
in North America’s snow belt states, Automotive News said.
D-C president and CEO Dieter Zetsche last month said that the 300M, LH and
Concorde and Dodge Intrepid will switch to rear drive and share some drivetrain
parts with the Mercedes-Benz E-Class range from the next model change.
Go deeper with GlobalData
|
Strategic
Review- |
But Automotive News said that rear drive has less grip in the snow and that
could affect sales.
The newspaper added that some industry analysts and dealers disagree: they
say that rear drive 2004 model year Dodge and Chrysler cars would be more distinctive
in a crowded market segment where front drive is now the norm.
Automotive
News said that DaimlerChrysler has a lot to lose if it makes the wrong decision
because the present front-drive Intrepid, Concorde, 300M and LHS models accounted
for 9.7 percent of group vehicle sales last year though rebates are helping
this year’s results along.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIt’s clear the debate will continue a while yet.
Automotive News quoted industry observers as saying that rear-drive would give
the company a selling point against front-drive rivals such as the top-selling
Toyota Camry and Ford’s Taurus though there was some disagreement with
Zetsche’s claim that electronic traction and stability control systems
could give snow adhesion levels comparable to front-drive models.
Merrill Lynch Global Securities analyst John Casesa told Automotive News that
the full-sized front-drive sedan segment is dying fast and that there isn’t
enough room for more than a few players to make money unless the product is
special.
"Even old-generation Mercedes-Benz technology could make (the Intrepid
and Concorde) very competitive," Casesa added.
|
To view related research reports, please follow the links |
