The CEO of FCA feels good about the sales of the Chrysler Pacifica.
Sergio Marchionne addressed the media this afternoon at the North American International Auto Show. He discussed a number of topics including the Pacifica, the recent investment announcements for Michigan and Ohio and the potential introduction of tariffs by President-Elect Donald Trump.
Marchionne says if tariffs were imposed on vehicles built in Canada and available for distribution in the U-S, it would be significant to both assembly plants in Windsor and Brampton.
"A good scenario is the continuation of NAFTA which is the basis of which the investment in Windsor was made, a bad scenario is one that says the production of minivans in Canada becomes uneconomical for U-S distribution," says Marchionne. "It's a combination of tariffs and costs, we just can't recover the cost of the vehicle, that would be lethal I think to Windsor."
Windsor built FCA Pacifica wins Utility Vehicle of the Year for 2017 at NAIAS (Photo by AM800's Rob Hindi)
Marchionne talked about the Dodge Caravan and says he's happy with the vehicle's sales.
"We're too pleased with the sales," he says. "I keep on telling them the emphasis ought to be on selling Pacificas, that's the real issue."
He adds there isn't a timeline for when production will end on the Caravan.
"The problem is there's a price differential between two vehicles which is relatively large so you pay peanuts you get monkeys, you're getting two different vehicles when you buy the two of them," says Marchionne. "They're both vans but one is technologically advanced compared to the other so we'll have to adjust to a new reality that's going to happen relatively soon.)
The Pacifica was named Utility vehicle of the year.
Today was day one of media preview days at the auto show. The show opens to the public this weekend.