AUBURN HILLS, Michigan — Chrysler on Monday shook up its brand strategy and executive ranks, saying it has created a new brand called Ram for its trucks. In a stunning move, the automaker has anointed its top designer, Ralph Gilles, 39, as CEO of Dodge cars. It said he will wear two hats, continuing to lead the product design organization in Chrysler.
"The brand-focused strategy has been refined further with the unbundling of the Dodge Brand, which now consists of the Dodge Ram Brand and the Dodge Car Brand organizations," said Sergio Marchionne, Chrysler CEO. "This reorganization will allow us to protect and develop the unique nature of the product offerings within the Dodge brand."
However, no specific product announcements were made on Monday.
The executive shakeup included a purging at the top levels of the company. Michael Accavitti, who had headed the Dodge brand, "has resigned to pursue other interests," Chrysler said in a statement. Olivier François was named president and CEO of the Chrysler brand, ousting Peter Fong, who "has resigned for personal reasons," said Chrysler. François comes to the automaker from Fiat, where he headed Lancia, a position he will retain, said Chrysler.
The elevation of Gilles seems to parallel a similar move made in July at General Motors. Designer Bryan Nesbitt was named as chief of Cadillac in that unexpected appointment. Nesbitt, 40, had strong ties to Chrysler, where was known for designing the Chrysler PT Cruiser. The new appointments for Gilles and Nesbitt seem to herald a new era of influence for designers that stretches far beyond the confines of the design studio.
At the same time, Chrysler named Fred Diaz, Jr., as president and CEO of the Dodge Ram brand. He was previously the director of the automaker's Denver Business Center.
Inside Line says: Fiat apparently is convinced the Ram brand is more powerful than the Dodge brand, while designers look to be the new darlings of the executive ranks in Detroit auto circles. — Anita Lienert, Correspondent
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