FCA is Spending $2 Billion on Next Generation Minivan
The automotive industry is still buzzing from all of the new models and innovation that were present at the Detroit Auto Show this month. However, the folks over at Chrysler are already looking forward to next years show. Earlier this month it was announced on the Fiat Chrysler Automobiles Twitter feed that the automaker will be unveiling its next generation minivan at the Detroit Auto Show next year. We also recently learned that FCA is spending $2 billion on next generation minivan development.
That’s right, Fiat Chrysler Automobiles is going to spend a reported $2 billion to develop and engineer their next generation minivan. The $2 billion will also be used to cover the cost of retooling its factory in Windsor, Ontario where the van is built.
Fiat put in a request with the Canadian government for federal funding assistance last year to help them develop the new minivans and other models. However, they decided to abandon the request for assistance and said that they would escape political interference by using their own money on the development.
FCA CEO Sergio Marchionne said that this large $2 billion estimate for the minivan will include everything from platform invent, to plant-specific funding, to engineering and development costs. Marchionne also added that, “It is my sincere hope that you’ll see it here on the stand next year.” Marchionne also said that he believes that the new minivan will keep the iconic Town and Country name, which is not surprising to us.
A lot of people may think that $2 billion is an exorbitant amount of money to spend on development, and it probably is. However, the Town and Country is the best-selling minivan in the United States and had a 13 percent sales increase last year. So they need to make sure that they get this design right in order to continue their dominance in this competitive segment.
We will be sure to update you as more information about the next generation Chrysler minivan becomes available.