In 2005, Chrysler sold 649,293 cars spread across seven models. Historically, it has been one of the most recognizable names in the US auto industry, one-third of the so-called Big Three, the three major American automakers. Now, 20 years later, the brand has nearly disappeared.
The only vehicle it currently makes is a minivan. The heyday was 20 years ago and more. Over time, it just wasn’t getting the attention and investment it deserved.
An enthusiast news outlet summed it up by saying Chrysler, once an industrial giant, is a shell of a brand. It is now just one of 14 brands in the stable of Stellantis, a struggling European American automaker.
Top managers have said they would consider killing brands that aren’t meeting targets.
Chrysler’s Decline Over the Years
One of founder Walter P. Chrysler’s heirs fears that Chrysler could be one of them. I’ve seen the brand slowly whittle away over the years, but I feel I’m on a mission to protect some very important, iconic brands, part of American history that we do not want to lose. Chrysler says at least three new vehicles are on the way, including an updated version of its only product.
Chrysler brand is here to stay. It is being well invested in. The brand is not on the table for elimination, and it has a very bright future.
Chrysler is one of the four brands that used to make up what was once known as the Chrysler Corporation. There have been others throughout its long history, such as Plymouth, Eagle, and DeSoto. Companies like Chrysler have a foothold and significance in the history of industry in the United States.
Ownership Changes and Market Challenges
They pioneered many innovations and played a foundational role in shaping the personal transportation and automotive industries.
The Chrysler Corporation was, and despite its current European ownership, is still considered one of the Big Three or Detroit Three, along with Ford and General Motors. It has had a colorful and often difficult history.
Walter Chrysler founded the company with the intention of delivering vehicles that were beautifully designed, featuring thoughtful innovations, top-notch engineering, and quality at affordable prices. It nearly went bankrupt in 1980 and then actually did in 2009. To be fair, so did General Motors.
Chrysler has been owned by a private equity firm, by Mercedes-Benz, by Italian maker Fiat, and in 2021, it merged with French maker Groupe PSA to form Stellantis.
The latest arrangement has suffered turmoil. After a record year of profits in 2023, the dealers that sell the North American brands sent an open letter severely criticizing management, especially CEO Carlos Tavares.
Not long after, Tavares suddenly resigned. Despite these challenges, over the decades, these brands have managed to endure and even succeed.
Jeep and Ram have successfully developed products consistent with their brand DNA, but Chrysler was never able to carve out a similar niche.
Attempts to Revive the Brand
Its only models in production are the Voyager and Pacifica, essentially different versions of the same product. Chrysler is credited with mainstreaming these vehicles and leading the segment, but minivans are all but disappearing from the market.
Additionally, the minivans are made in Ontario, Canada, and the incoming Trump administration is threatening a 25% tariff on all products imported from the country.
Chrysler told CNBC it is looking forward to working with the president-elect. Sales have increased since the pandemic, and the segment is targeting new buyers, such as empty nesters, single people, and outdoor-active young adults. Chrysler was meant to be a premium or near-luxury brand, akin to Lincoln and Cadillac.
However, some of its recent owners decided that its stablemates did a better job of serving that market. The brand’s reputation for poor quality didn’t help.
Even if a Chrysler was engineered to match a Mercedes, consumers wouldn’t be willing to pay as much for it simply because of the Chrysler badge.
Looking Toward the Future
Some argue that Stellantis’ premium brand strategy hasn’t worked out well either. Alfa Romeo, for example, sold fewer than 7,000 cars in the U.S. through the third quarter of 2024. Some blame Jeep’s sales declines on its aggressive move upmarket.
It wasn’t always like this. The 90s and early 2000s were good years for Chrysler. The brand benefited from a revival at Chrysler Corporation, known for bold and risk-taking designs.
The PT Cruiser, though polarizing, sold 1.3 million units during its ten-year run. The Chrysler 300 was another standout, embodying the company’s identity as an affordable combination of upscale design and performance.
Founder Walter P. Chrysler, who had already built a reputation as a turnaround executive at brands such as Buick and Willys-Overland, began working with ex-Studebaker engineers in 1920 to create affordable luxury cars.
Their first model, the 1924 Chrysler Six, had a modest sticker price. Walter Chrysler’s grandson, Frank Rhodes, continues to advocate for the brand’s survival.
In August 2024, Rhodes wrote an open letter to Stellantis, suggesting that if they don’t intend to invest in Chrysler and Dodge, an investor group should acquire the brands to keep them alive.
Stellantis, however, insists that Chrysler is not for sale and remains committed to its future. To illustrate its vision, Chrysler has unveiled several concept vehicles, including the 2022 Airflow crossover and the 2024 Halcyon coupe. While the Airflow won’t go into production, Chrysler says a production version of the Halcyon is in the works.
A refreshed Pacifica is expected in 2026, featuring an updated plug-in hybrid powertrain shared with Jeep. A full battery-electric minivan is also in development, though a release date hasn’t been specified. Chrysler will continue offering its 3.6L gas engine through the end of the decade.
Additionally, a large crossover in both fully electric and hybrid versions is planned for 2026. The company is confident that this new lineup will help repair its strained relationships with dealers. Market research has shown strong consumer enthusiasm for Chrysler’s upcoming designs.
Going forward, it is critical for Chrysler to regain its spirit of innovation and emotional appeal. The brand needs to embrace the bold, risk-taking approach that once defined it.
These Chrysler models were products that resonated deeply with consumers, and that is the key to restoring the brand’s former glory.