Once a titan in the American automotive landscape, Chrysler was synonymous with innovation and success, its name gracing one of the world's tallest structures and its presence felt through a vast network of factories and dealerships across the United States. However, the term "once" is pivotal in this context. The company has experienced a precipitous decline, with the once-esteemed brand now a mere shadow of its former glory, clinging to existence and facing an uncertain future.

Over the past quarter-century, Chrysler has undergone a series of acquisitions by foreign automakers, navigated bankruptcy, and received a second federal bailout, culminating in the production of a single vehicle bearing the Chrysler name—a minivan, manufactured in Canada. Despite its historical significance as the inventor of the minivan, the concept has waned in popularity among American consumers, who have shifted their preferences towards the more robust and stylish SUVs.

The Pacifica, Chrysler's current offering, is struggling alongside most of Stellantis' US models, with a 21% drop in US sales in the first nine months of the year and a staggering 44% decline in the third quarter, contrasting with the overall growth in US car sales during the same period. The challenges faced by Stellantis have led to the abrupt departure of CEO Carlos Tavares and a quest for new leadership and solutions to its myriad issues. Some experts are questioning the rationale for maintaining the Chrysler brand amidst the company's other three North American brands—Jeep, Dodge, and Ram.

"There's no vitality left in that brand," remarked Ivan Drury, Director of Insights at Edmunds, highlighting the scarcity of models to support all four brands. "You're down to a single model in a segment that's barely holding on." While Stellantis representatives maintain that the Chrysler brand is here to stay, other experts suggest that the brand is, at best, in dire straits and may not endure given the current turmoil within its corporate parent. "I believe consolidation is on the horizon," said Erin Keating, Executive Analyst at Cox Automotive.

In July, Tavares indicated that the company would entertain the idea of discarding any brand that failed to generate profits. "Decisions will be made" if a brand isn't profitable, he told Bloomberg, asserting that there would be "no taboos" against shutting down a brand, although he did confirm that all brands were profitable "for the time being." With Tavares' exit, the fate of Chrysler now rests with Stellantis' next leader. The Pacifica, assembled at the Stellantis plant in Windsor, Ontario, could soon face a 25% tariff on all Canadian imports threatened by President-elect Donald Trump, potentially rendering the minivan unaffordable for most or unprofitable for Stellantis if it were to absorb the tariff cost, which seems unlikely.

When queried about its future plans, the company offered a more resolute commitment to Chrysler's future, stating that each of its 14 global brands "has a 10-year timeframe to establish a profitable and sustainable business." However, it acknowledged that "volatile markets and temporary situations may lead to fluctuations." Regarding specific vehicle plans for Chrysler, the company revealed intentions to release an all-electric version of the Pacifica by 2026 and to reintroduce the Voyager, a more affordable minivan, under the Chrysler brand in 2025.

Nevertheless, there are costs associated with sustaining the Chrysler brand, including the division of limited marketing funds with healthier brands, and there appears to be minimal downside to discontinuing it. Unlike the closures of Pontiac, Oldsmobile, and Chrysler's former Plymouth, which required automakers to buy out dealerships, closing Chrysler would not necessitate such actions, as virtually all Chrysler dealers also sell Jeep, Ram, and Dodge vehicles.

"I don't think you lose much by integrating Chrysler into Dodge and Jeep," said Keating. Kevin Farrish, head of Stellantis' US dealership council, has seen product plans for Chrysler vehicles that he cannot disclose publicly. "By no means is that (single minivan) a permanent plan," he stated. "I know Chrysler is developing other products."

Despite being a vocal critic of Stellantis' strategy, Farrish has noted positive changes within the company following dealer complaints, such as reduced prices for 2025 models and incentives to shift a surplus of older models. "We're competitively priced today, which is a significant change they made at our request," he remarked. "It won't fix everything overnight, but it was a correct move to correct the course."

One of Stellantis' challenges is that it has become too expensive for many of its traditional customers. By the fourth quarter of 2023, the average Stellantis vehicle sold for $58,000 in the US, the highest in the industry, according to Edmunds data. Although Stellantis' average price has since decreased, it remained the second-highest in the industry at just under $55,000 in the third quarter, trailing only Ford Motor, including its luxury brand Lincoln.

Stellantis CFO Doug Ostermann admitted on Wednesday that the company was slow to reduce prices, but recent cuts over the last two months have begun to address the issue. However, he noted that while this has helped regain some market share, it is not a panacea. "A significant portion of the market share decline is simply because we have been absent in some very key opportunistic segments," he told investors, specifically mentioning the lack of an affordable entry-level SUV.

The vehicles in the pipeline mentioned by Ostermann are not slated to be Chrysler models. Chrysler has not had an SUV since the Aspen, which was discontinued with its bankruptcy in 2009. Ostermann did not comment on Chrysler's future specifically, but external observers continue to question the iconic brand's prospects. "I suspect a review of brands and lineup will be one of the first steps the new (Stellantis) CEO will have to take," said Jeff Schuster, Global Vice President of Automotive Research at GlobalData. "If not refilling the Chrysler pipeline, you have to consider consolidation. That's probably one of the initial steps."