A staggering 44% drop in third-quarter sales and a projected $10.6 billion loss have left many wondering if Chrysler is going out of business. The iconic American automaker currently offers just one model—the Pacifica minivan—which has seen a concerning 21% sales decline in the first nine months of 2023.
In fact, Stellantis, Chrysler’s parent company, has acknowledged making “arrogant” mistakes as their vehicles now command the highest average price in the industry at $58,000. Furthermore, with dealerships facing significant overstock issues and sales continuing to decline, questions about Chrysler’s future have become increasingly pressing.
Let’s examines the current state of Chrysler, what it means for existing owners, and the essential steps car owners should take to protect their investments.
Current State of Chrysler in 2025
Chrysler’s presence in the automotive market has narrowed significantly, raising concerns about whether is chrysler going out of business. The brand’s transformation reflects broader changes within the automotive industry.
Single model lineup
Chrysler now operates with just a single model in its portfolio. The Pacifica minivan, available in both conventional and hybrid variants, stands as the sole offering. The base model starts at $42,450, while the plug-in hybrid version commands a premium starting price of $51,055.
The Pacifica comes with notable features:
- Up to 287 horsepower in the standard model
- 82 MPGe rating for the hybrid version
- Seating capacity for up to 8 passengers (7 in hybrid models)
- Best-in-class towing capacity of 3,600 pounds
Sales performance numbers
Despite limited offerings, Chrysler’s sales data presents a mixed picture. Notably, the brand’s fourth-quarter U.S. total sales increased by 166% compared to the previous year. Additionally, the Pacifica’s quarterly sales showed a remarkable 208% increase year over year.
The Pacifica Hybrid has consequently emerged as a significant player in the plug-in hybrid market, accounting for 17% of total Pacifica sales with 20,423 units sold. Meanwhile, the model ranks as the fourth best-selling PHEV in the United States.
Market position challenges
Primarily, Chrysler’s market position faces substantial headwinds. The brand’s market share has plummeted to 0.27% from 0.69% a year earlier. This decline raises questions about is dodge chrysler going out of business as the brand struggles to maintain its foothold.
The parent company Stellantis has experienced significant setbacks, with sales dropping 14% in the first half of 2024. The company’s profits have declined by nearly half, while dealer inventories remain concerningly high. These challenges have prompted industry analysts to question is chrysler going out of business 2024, especially as the brand’s dealer council has expressed frustration with management decisions.
Key Signs Pointing to Chrysler’s Uncertain Future
Recent developments at Stellantis paint a concerning picture as questions mount about is chrysler going out of business. The parent company faces unprecedented challenges that could reshape its future.
Leadership changes at Stellantis
The sudden departure of CEO Carlos Tavares marks a pivotal moment for those wondering is chrysler going out of business. Under intense pressure from U.S. dealers and the United Auto Workers union, Tavares left following a dismal financial performance. Subsequently, Chief Financial Officer Natalie Knight’s replacement by Doug Ostermann, previously the chief operating officer in China, signals a major leadership overhaul.
The company now operates under temporary oversight from Chairman John Elkann and a 10-member executive committee. Moreover, other significant departures include Chief Software Officer Yves Bonnefont, whose responsibilities now fall under Chief Engineering and Technology Officer Ned Curic.
Dealer network concerns
The relationship between Stellantis and its dealer network has deteriorated substantially, raising fresh concerns about is chrysler going out of business 2024. A comprehensive survey by Kerrigan Advisors revealed that 72% of Chrysler, Dodge, Jeep, and Ram dealers expressed “no trust” in the automaker—an unprecedented figure in the survey’s history.
The dealer discontent stems from several critical issues:
- Cost-cutting measures that prioritized short-term profits
- Aggressive pricing strategies that alienated traditional customers
- Product decisions that left dealers with limited inventory options
Primarily, dealers accused former CEO Tavares of “reckless decision-making” that damaged both dealer profitability and customer trust. The situation became so severe that Kevin Farrish, head of the Stellantis dealer council, wrote an open letter criticizing management decisions that led to significant market-share losses.
The question is dodge chrysler going out of business gained more traction when 64% of dealers predicted their franchise values would decline within the next 12 months. Nevertheless, Doug Ostermann, the new CFO, has acknowledged these challenges and positioned rebuilding dealer trust as a top priority under the new leadership structure.
The company’s defensive stance intensified after dealers urgently voiced their concerns about plummeting sales. Accordingly, this dealer crisis, combined with leadership instability, presents significant hurdles for Chrysler’s future within the Stellantis portfolio.
Impact on Current Chrysler Owners
Current Chrysler owners face mounting concerns as questions about is chrysler going out of business intensify. The situation demands careful attention to several critical aspects of vehicle ownership.
Warranty coverage status
Primarily, Chrysler’s basic limited warranty remains intact at 3 years or 36,000 miles, although the powertrain coverage extends to 5 years or 60,000 miles. The manufacturer continues honoring these warranties through authorized dealers, rather than limiting coverage. For owners wondering is dodge chrysler going out of business, these key warranty protections include:
- Factory-installed systems and parts coverage
- Repair or replacement of covered components
- Towing services to nearest authorized dealers
- Transferability to subsequent owners
Certainly, some restrictions apply, as warranties exclude routine maintenance, interior damage, and aftermarket modifications. Beginning August 2024, Stellantis plans to replace Mopar Vehicle Protection with brand-specific FlexCare programs, offering coverage up to 10 years.
Parts availability
The parts supply situation presents significant challenges as is chrysler going out of business 2024 concerns grow. Dealer parts managers report unprecedented backorder rates, with up to 40% of ordered parts facing delays. Even basic components like oil filters and routine maintenance items experience supply constraints.
Mopar continues serving as the original equipment manufacturer (OEM) for Chrysler vehicles, ensuring parts meet factory specifications. However, dealerships struggle with inventory management, often unable to secure parts through their traditional dealer-to-dealer trading networks.
Service network changes
The service landscape undergoes substantial adjustments as is chrysler going out of business rumors persist. Recent organizational changes include new leadership appointments in key service positions, specifically in technical services, warranty operations, and customer care. These changes aim to maintain service quality despite broader company challenges.
Service operations now emphasize digital integration, with the Safety & Security Package provided for the first decade of vehicle ownership. The restructured service network incorporates:
- GPS-based safety services
- Remote software updates
- Vehicle health monitoring
- Enhanced customer support systems
Is chrysler going out of business concerns have prompted dealerships to adapt their service operations. Although some facilities report extended wait times for repairs due to parts shortages, the company maintains its commitment to warranty service through authorized dealers. The service network continues supporting both current warranty claims and extended coverage options, ensuring owners retain access to certified technicians and genuine parts.
What Happens If Chrysler Goes Out of Business?
Looking back at automotive history provides valuable insights into what happens when major auto manufacturers face financial difficulties. As questions mount about is Chrysler going out of business, examining past scenarios offers crucial perspective.
Historical precedents
Initially, Chrysler’s 2009 bankruptcy filing demonstrated that Chapter 11 reorganization differs significantly from complete business closure. During that period, the U.S. government stepped in to back vehicle warranties, ensuring owners retained protection. The company emerged within 30 days as part of a restructured organization, primarily through a partnership with Fiat.
Given these points about is chrysler going out of business 2024, it’s worth noting that many automotive brands have successfully navigated similar challenges. In essence, when automakers face financial difficulties, they typically opt for Chapter 11 reorganization rather than Chapter 7 liquidation.
Legal protections for owners
As concerns about is dodge chrysler going out of business persist, several federal laws safeguard vehicle owners:
- The Magnuson-Moss Warranty Act protects consumers when manufacturers fail to honor warranties
- State Lemon Laws provide remedies for defective vehicles across all 50 states
- The Federal Odometer Act prohibits tampering with vehicle mileage displays
In the event of is chrysler going out of business becoming reality, past cases show that warranty obligations typically transfer to successor companies. Fundamentally, the U.S. Congress has established comprehensive regulations requiring automakers to support discontinued models with parts and recall coverage for extended periods.
Based on historical patterns, even if Chrysler ceased operations, dealerships and local mechanics would still maintain the capability to service vehicles. As a result, owners of discontinued vehicle models retain access to:
- Ongoing warranty support through authorized service networks
- Continued parts availability through existing supply chains
- Protection under federal consumer protection laws
- Access to qualified repair facilities
The automotive industry has witnessed numerous brand discontinuations, yet consumer protections remain robust. Product liability claims, particularly, deserve attention as they may face different treatment during bankruptcy proceedings. Owners should understand that while manufacturers might change, their basic rights as consumers persist under federal and state laws.
Steps Chrysler Owners Should Take Now
First and foremost, with questions swirling about is chrysler going out of business, taking proactive steps becomes crucial for vehicle owners. Protecting your investment requires careful attention to documentation, coverage options, and service planning.
Document maintenance records
Maintaining detailed service records fundamentally impacts your vehicle’s resale value and warranty coverage. A comprehensive maintenance log should include:
- Service dates and mileage readings
- Repair receipts and work orders
- Parts replacement documentation
- Accident reports and insurance claims
- Recall corrections and updates
Primarily, electronic records prove more reliable than paper logs, offering better organization and accessibility. In addition to protecting warranty claims, proper documentation can increase resale value by demonstrating consistent care.
Consider extended warranties as is chrysler going out of business rumors persist
The transition from Mopar Vehicle Protection to FlexCare marks a significant shift in warranty coverage. The new FlexCare program offers several protection levels:
- Extended Care Premium: Covers 5,000 components with certified technician service
- Extended Care Plus: Protects 800 major components
- MultiCare: Includes tire, wheel, and cosmetic coverage for up to 7 years
Above all, these factory-backed plans provide authentic Mopar parts and certified technician service. With concerns about is dodge chrysler going out of business mounting, extended coverage becomes increasingly valuable for long-term protection.
Research alternative service options
As speculation about is chrysler going out of business 2024 continues, understanding service options becomes essential. Mopar service technicians receive extensive training and support from original vehicle engineers. These certified experts utilize state-of-the-art technology and authentic parts, ensuring quality repairs.
Independent service facilities also offer alternatives, often backing their work with industry-standard warranties. When selecting a service provider, consider:
Factory-Backed Benefits:
- Access to original engineering support
- State-of-the-art diagnostic equipment
- Authentic Mopar parts availability
- Comprehensive warranty coverage
The FlexCare program includes additional perks such as car rental allowances, roadside assistance, and trip interruption coverage. Furthermore, service plans offering flexible terms can provide extended protection beyond the original warranty period.
For optimal protection, owners should consider plans that include first-day rental coverage and trip interruption protection for breakdowns occurring more than 100 miles from home. These comprehensive options help safeguard against unexpected repair costs while maintaining vehicle value.
Is Chrysler Going Out Of Business Frequently Asked Questions
Is Chrysler going out of business?
No, Chrysler is not going out of business. While the brand has faced challenges, including a shrinking lineup and speculation about its future, Stellantis (Chrysler’s parent company) has stated that it remains committed to the brand. Chrysler is investing in new models, including a refreshed Pacifica minivan and potential electric vehicles, as part of its long-term strategy.
Is Dodge Chrysler going out of business?
No, Dodge and Chrysler are not going out of business. Although there have been concerns about Stellantis potentially discontinuing underperforming brands, both Dodge and Chrysler are expected to continue. Chrysler is planning new models, and Dodge remains strong with its muscle car lineup. There has been speculation about an investor group potentially acquiring these brands, but Stellantis has denied any plans to sell them.
Is Chrysler Capital going out of business?
No, Chrysler Capital is not going out of business. Chrysler Capital, a financial services provider for vehicle financing and leasing, continues to operate as part of Santander Consumer USA. There have been no announcements regarding its closure or discontinuation. It remains a key financing option for customers purchasing Chrysler, Dodge, Jeep, and Ram vehicles.
How will current Chrysler owners be affected if the company faces financial difficulties?
Current owners should not be immediately affected. Warranties are still being honored, and parts are still available, though there may be some delays. Even if Chrysler were to cease operations, historical precedents suggest that warranty obligations would likely transfer to a successor company.
What steps should Chrysler owners take to protect their investment?
Chrysler owners should document all maintenance records, consider extended warranty options like the new FlexCare program, and research alternative service options. These steps can help maintain the vehicle’s value and ensure continued support regardless of the company’s future.
Will Chrysler vehicles still be serviceable if the brand discontinues?
Yes, even if Chrysler were to discontinue operations, dealerships and local mechanics would still be able to service the vehicles. Parts would likely remain available through existing supply chains, and federal regulations require automakers to support discontinued models with parts and recall coverage for extended periods.