Re: If you were Cerberus, what would you do with the Viper?
I don't know if the current engineers and executives are as commited to being #1 as those who developed the GTS...
Well, I will start with this and then throw in my own usual 10 cents (yep, it's gonna be a long read - I'm never as concise as Patentlaw).
First off, having spoken with some of the top SRT engineers directly this past week I can assure you that there is no team in the automotive industry that has more
passion and commitment to performance than these guys. Not one. Again, let me emphasize the word "passion" as it is a key theme for not only the Viper, but one necessary to bring Chrysler to where it needs to be - at least in the short term. I can also tell you the folks in marketing, especially the lead Viper guy, "get it" and want to make sure the Viper stays on top. Now feel free to question the commitment of the guys (and gals) in accounting, but make sure you leave just about everybody on the SRT team out of that conversation - they are passionate about this car.
Now, what about Cerberus? It's obvious it isn't going to be easy. Let's start with the fact that the Viper
is profitable on a per-car basis - and not just a few pennies. So if you have a profitable car that isn't drawing on extensive resources you put it on the back burner for now. I'll get to that back burner in a minute, but since you asked what I would do if I was Cerberus, here it is:
- Evaluate sales trends on all models and cut those that have seen a downturn with no real hope of reversing it. Especially if they draw irretrievable resources that could be used elsewhere (money, parts, etc.) They just did that with four models this past week. Good for them.
- Eliminate redundant models or make them less alike. The various press earlier mentioned that the Aspen could be cut as it was essentially a rebadged Durango with a different front end. Apparently it fell on the "keep it" side of the fence. Chrysler products are virtual clones of the Dodge products (or vice versa). Similar designs, similar features, and similar price points. Choosing between the top-of-the-line 300C SRT8 and Charger SRT8 comes down to exterior looks and maybe the interior to a lesser degree. Instead make them more noticeably different: Ford vs. Lincoln, Acura vs. Honda, Lexus vs. Toyota, Chevy vs. Cadillac, etc. Chrysler needs to become a true luxury brand while Dodge stays with "meat and potatoes". Right now they are Pontiac & Chevy - two historic names with no real differences in identity - not counting that "Corvette" thing of course.
- Create a "generic" model that will appeal to the masses. Chrysler and Dodge have both taken pride in taking the path less traveled. Cutting-edge styling - "Dodge Different". And I say they should continue down that path for most of their "niche" models such as sports cars, muscle cars, etc. But the simple fact is that Toyota, Honda, and Ford all sell millions of examples of pretty bland styling. Even Chrysler's main claim to financial fame over the past decade has been a pretty darn boring vehicle: The minivan. More on this below - it became a pretty long paragraph.
- Don't ruin or kill a GREAT thing only to revive it in hindsight: The Viper. Acura is rumored to be bringing back the NSX, Toyota the Supra, Nissan the GT-R, Ford did the GT, and the Corvette isn't going anywhere. The simple fact is that the Viper is already one of the most legendary vehicles in the automotive history. A century from now when our great grandchildren are in water-powered hovercraft, the transportation history books will devote a chapter to the Viper - not a footnote as so many others will likely inspire. The Viper has continued to garner magazine cover after magazine cover like no other car in recent memory. And with more to come. What I would do if I were Cerberus is take advantage of it: Get the Viper out there for more press events, get it back into racing in Le Mans and other events where it shined. I know the Viper can dominate with just a little manufacturer support. I mean really, if these wimps from the press can run circles around everybody else with the 2008 Viper think of what it could do in more capable hands. Rather than another run-on paragraph (can't separate them in numbered fields), read on:
For those of you that have had the opportunity to visit Chrysler's headquarters in Auburn Hills, as you walk down the hallways of glass-walled offices and cubes look closely: You will see more Vipers represented than ANY other Chrysler model, many of which are from the glory days of Le Mans. Sure, there might be a few NASCAR pictures or toys - a program in which Dodge dumps hundreds of millions - but the
VIPER is what inspires these people. Heck, visit any Dodge dealer (or even Chrysler for that matter) and walk past the sales offices/cubes. Look in the waiting room for Service. What do you see? Viper, Viper, and more Viper. The simple fact is that the Viper inspires a more passionate response than ANY other single model out there. Sure, there are folks that dream of Ferrari, aspire to a Corvette, or settle for a Camry. But the Viper ignites a passion seldom seen anywhere else. You need only look at the ownership group to see that. In a recent poll we asked everybody (and not just Viper owners) if the Viper was important to the image of Chrysler/Dodge/SRT. The response was virtually unanimous:
98.45% said that the Viper is critical to the company image.
Let's face it, the biggest selling automotive designs are the least inspiring. Cars that make you say, "yeah, it's okay." They certainly don't ignite a passion nor do they create a massive fan base. Like 90% of the world's population they are simply content to do their job well, day in and day out with little fanfare. When you talk about most people in general you describe them as "nice" and don't really feel passionately about them either way. Cars are the same way and there aren't a lot of them out there that can polarize the public - the "love it" or "hate it" response.
But it seems that Chrysler/Dodge, which are largely different by design, inspire those kinds of responses. As a result they have no Taurus, no Civic/Accord, and no Camry. The 300 has done well, but largely because there were more in the "love it" group than the "hate it" group. And thankfully the automotive press fell in the first one. The simple fact is that Cerberus needs to come up with mildly-inspiring, middle-of-the-road car for the masses. A lower priced, more "stripped down" version for Dodge and a more upscale version for Chrysler. Get rid of those styling cues that polarize the public such as the lines on the Chrysler hoods. Save the in-your-face Dodge crosshair grills for your more radical models. You don't identify any Hondas, Toyotas, or Fords by their grills - so why tie yourself to only one version of such an important part of the design? Focus on that as your first priority: To create a car using the same formula that made the minivan a home run.
And the Viper? It is an icon, a legend - a true automotive superstar. Nike spends billions on celebrities to sell tennis shoes. The same holds true for major banks, beverage companies, clothing, cosmetics, and even cars: Remember when Chrysler signed Celine Dion for $14 million as a celebrity endorsement? The result was that it sold a LOT of records for Celine, but not too many cars for Chrysler (Chrysler's ad agency, BBDO, advised against the use of Celine Dion's endorsement from the beginning.). Apple doesn't need celebrities because it already has the latest one: The iPhone. And while the percentage of people that will actually own or buy one is small (most of us aren't on the AT&T network), Apple drives the sales of their other core products with the help of the iPhone publicity. Heck,it has been widely reported that a video game called "Halo 3" helped drive consumers to buy more Microsoft Xbox video systems which drove more people to buy Microsoft products in general: Last week they reported that their fiscal 1st quarter profit rose 23% and cited a video game as one of the driving forces behind it. Even companies with no "superstar" products spend millions to try and make them so: Look at the hundreds of millions GM has spent to put Cadillac into various racing series - mostly with four-door sedans that a statistically
very small segment people are going to buy. And for a brand that has been devoted to the luxury car segment almost exclusively. At least the Corvette makes sense.
The bottom line is that the Viper is a "self made" superstar. A celebrity endorsement for the rest of the product line, but one that doesn't demand a bowl of green M&M's and 12 dozen roses before a commercial photo shoot. But to make use of a celebrity you need to get that celebrity out in the public eye. The automotive press
knows that the Viper will sell more magazines when it appears on the cover so why doesn't Chrysler realize that it will sell more carswhen the Viper is more prominent in the public eye? Buick doesn't spend
40 million dollars on Tiger Woods to sell golf clubs, they spend it to sell cars. They will never make a penny from Tiger personally, but they know the "halo effect" he has on the brand. The Viper is profitable and makes money on its own. The fact that it also happens to be a bona fide celebrity by every single measure of the word is a bonus. If I were Cerberus, I would make sure that my in-house celebrity got as much exposure as humanly possible. And the very, very
last thing I would do is kill the only celebrity the company has. Shooting Tiger Woods in public would decimate Buick sales. Killing the Viper would be just as baffling. I am confident that Cerberus is smart enough to recognize a celebrity in their midst and take advantage of it accordingly. I know I would if I were them.