A Successful Incentive: Why the Dodge/Ram Split Adds Up
In October 2009, we saw a split between Dodge RAM dealers and their respective companies. At first, people thought this was an absolutely horrid decision; some still might think that. Some still have had no idea it happened, and some realized it was actually beneficial. Typically, breaking-up is hard to do. In this case, it was one of those situations where breaking-up was mutually beneficial, and continues to be beneficial today.
Chrysler Group CEO Sergio Marchionne was the one responsible for separating the brands 7 years ago, and it seems that it only made both brands grow and improve.
Both Brands Can Focus on Making What They Want
The main reason behind this is because Dodge was split down the middle. The truck side of Dodge wanted to focus on big, bold, and rugged vehicles. Whereas the car side of Dodge wanted to focus on making youthful, spirited, and more sporty vehicles. This caused a situation where their attention was divided and focus was spread thing. Why? Well, simply take a look at the volume of both trucks and cars they have. No doubt this had something to do with it, seeing as the truck models alone equate to almost an entire brand’s vehicle lineup; and same goes for the cars.
Therefore, this allows Ram to focus more on the commercial and working side of the market, and Dodge the ability to focus on the sporty and performance side of things.
Which Results in Better Vehicles
As proven by the 2016 models like the Ram 3500 with best in class towing and the Dodge Challenger with an ungodly amount of horsepower, this split-focus tactic allowed both Dodge and Ram to do what they do best; and drastically improve the models on both ends. The quality of the vehicles have improved, along with the quantity. It’s fair to say that without the split, we might not have a Challenger/Charger lineup in 2016 with earth-shattering performance. Nor would the 2016 Ram truck lineup take the market by storm with best-in-class towing and performance spread across the 1500, 2500, and 3500 levels.
Without this split, it’s clear that Dodge and Ram would not be thriving like they are today. Allowing the brands to focus on what they know and love has helped the growth of both companies, and it’s improved sales greatly since 2009.
It Actually Improved Sales
Since 2009, Ram has been leading the company in sales growth. They were the fastest-growing truck brand in the country from 2009-2014, and nearly doubled their market share by 22 percent of the truck market. Dodge is doing the same thing, and increased sales by 41 percent from 2009-2014, and is crushing the performance market with the 2016 Challenger SRT Hellcat and Viper.
In that short five year span after the split, both brands saw an impressive boost in sales. The fact Dodge and Ram are putting out some of the best performing and well-loved vehicles in their history, it’s safe to say this split was nothing but beneficial.