Does chrysler loose money on the viper? nt

rschiltz

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I would say DC does make money on the Viper moreso on the advertising it does for the whole Dodge/Chrysler division rather than car sales.
 

Janni

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I think we ought to be really nervous in light of the upcoming changes at D-C. I would bet that on paper, the Viper DOES NOT make money. It does, however, represent Dodge as an image car, provide a test bed for new processes and products (the platform team concept, team building, RTM, etc.) BUT these items do not directly translate on to a P&L statement for a particular model. Dodge also does tons of stuff for us, the VCA, etc. and that is NOT a money making venture.

I would not be surprised if we saw a fairly large price increase in the next gen car - they may want it to make money on its own. I would also expect less D-C assistance with the VCA and future VOIs. If we were smart, it may behoove us to write a letter or two to the new regime explaining how the Viper ownership experience has influenced our other car buying decision processes, i.e. we are ordering our second Ram 3500 and may be buying a Neon ACR in a month or so. D-C execs need to have the ViperNation remind them of the non P&L value of the Viper.

Just my (hopefully overly paranoid) $.02
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Janni

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Uh oh.... sure indication that the end is near - Big Jim and I agree on something!
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Ulysses

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I don't think you're being paranoid, and I believe you and BigJim are right. We should be worried. Probably not that they are going to stop making the car but they are going to want it to make money, like Janni says. However, I think that instead of charging an outrageous price, they are going to MASS PRODUCE it to become profitable. YIKES!
 

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