It is a curious move, because an economy sedan is what people usually buy as their first car, and Chrysler sees this as a step-up (i.e. 2nd purchase). But that means they're not targeting first-time buyers, and they could miss out on those sales if consumers stay loyal to other brands.
 
Risky.

I really do not see the economy sedan segment going away. Do you Karl?
 
I do think it is a mistake not to have an economy sedan in its lineup.
 
GM has the Vibe, but the Cobalt certainly out sells it.

With the neon gone, dodge has nothing to lose. Dodge can offer better cars and make more money, no one would question them as they are not selling eco sedans.
 
But on the other hand, they should not expect very high volumes. Also, have a different personality as the PT cruiser buyers might be attracted to it.

It's hard to see the economy sedan segment going away, but in 1985 if you had told anyone what the state of the station wagon would be in 1997, no one would have believed you.
 
I guess what I'm proposing is the desire for buyers, at almost every income level, to have high "utility" capabilities in their vehicles. I think the SUV let the genie out of the bottle in terms of making people think of their vehicles as more than just basic transportation. The SUV made people think of them as everything from functional lifestyle vehicles to image-enhancing lifestyle vehicles (the overwhelming majority of Americans fall into the latter category).
 
Now it seems like a lot of people think of sedans as, well, JUST sedans. There's no image sizzle and not much functional capability beyond carrrying human bodies and maybe a bit of cargo. But vehicles like the xB and Caliber promise both an enhanced image and enhanced real-world functionality and flexibility. And while the basic SUV isn't considered extremely hot anymore, it's found plenty of new life in "crossovers" and "activity vehicles" and all the other silly names the marketers use to rebadge the basic SUV concept.
 
I guess I'm wondering if we're seeing the beginning of another shift in vehicle design in the low-price segment. That's not to say it can't someday shift back. Both wagons and mid-sized sedans are making a bit of comeback, so even if (and I emphasize IF) economy sedans were slowly replaced by low-priced "lifestyle" vehicles, the basic four-door econobox could come back with a venegence in 10 or 12 years.

So basically, hatchbacks are taking over, but in taller and bulkier-looking form.
 
Sedans are definitely losing the cachet they used to have. A luxury station wagon still doesn't get as much respect, but luxury SUVs have gotten more acceptance than I would've guessed. (Go to the '80s and tell them that luxury Broncos will become popular...)
 
The only real problem I see for Dodge is that their cheapest car won't be all that cheap. Chrysler could get away with that, but Dodge needs something in the $15,000 range... don't they?

For me small sedan is nonsense. I actually cannot imagine why you would prefer sedan form of small car to hatchback. I guess people buy small sedans in developing countries (and strangely in USA) ignoring utility factor mostly because in less developed countries sedan is regarded as a more prestigious form of car.

It will depend on price I guess. If the price is in the econo-car segment, then I don't think there will be too much of a problem (hopefully). Hatchbacks are much more practical than sedans.

I just recently purchased an '06 Subaru Impreza WRX Limited WAGON. Went for the wagon, over the sedan, because of the increased UTILITY.
 
I've owned SUVs, hatchbacks and wagons for years. Once you've experienced their usefullness, it's very hard to return to a sedan. In my case, I just got tired of driving a truck (SUV), but didn't want to give either 4WD or the utility that a wagon-like vehicle offers. I think many people feel the same way.

Interesting that Hatches are multiplying in the compact segment, while dying off in the midsize range (GM's Maxx supposedly croaks after 2007).
Do people buying midsize cars dislike hatchback styling, or feel a trunk adds more "status" and safety?

Europe for years have had hatchbacks as the premier econocar shape. I have owned two VW Gti's and currently a Ford Focus SVT and let me tell you, I could never just have a sedan on my driveway. Once you become spoiled to the utility of a hatchback, it's hard to go back. I have moved so much stuff with mine.... and have had many friends ask to borrow it since they couldn't fit things in their sedans.
I think the Caliber will hopefully be a great vehicle. It has the looks of a good car. And since Ford refuses to redesign the Focus anytime soon, I may be looking into this car for my future drive!

I could be wrong, but it seems to me that the Caliber's main competitors are the Mazda3 (hatch) and the Toyota Matrix/Pontiac Vibe. These two are somewhat trendy, fuel-efficient little wagons in the 15-20K range with different (albeit sometimes overlapping) strengths & weaknesses: The Mazda3 is a great handling, peppy FWD car that lags a bit in the safety area (so-so crash tests, no traction control or ESC options), in the area of passenger and cargo space, and in the area of visibility (especially side and rear). The Matrix has Toyota reliability, good cargo & passenger capacity, AWD and ESC as options. It is rather lackluster in the realm of ride, drive and handling. Still, for the Caliber to compete succesfully with these two, it would have to either equal/surpass the Mazda3 in engine responsiveness and handling agility, or equal/surpass the Matrix in hauling capacity, driveline options and safety advantages (crash tests, ESC, etc.). And, of course, be reliable, well-marketed, and cost less than 20K loaded. Considering the similar products we've been getting from Daimler/Chrysler lately (the Neon, the PT Cruiser), I would't hold my breath.

I own a Caliber SXT 2.0L/CVT and only made the purchase after 3
months of looking and riding or driving all the vehicles of the same
type.
While the Calibers interior is not the Mazda3 style it was passable
for the daily driver but the good aspects were the ease of getting in
and out,mid range fuel economy and the look at me styling.
I have learned the secret of driving the CVT and can actually squeel
the tires from a stop if wanted.
The car delivers a faithful(even predictable) 29mpg(Imp)/city
and 37-38mpg(Imp) highway.
It's a fun car to drive for $18,000.00

Sounds like most of the talk was just talk here. The Caliber's looks take it out of competition with any other car. The Caliber's CVT tranny also let it leap over other cars, except for the Nissan Versa's CVT which can only be had with their more expensive models & doo dads. Possibly three items will let the other brands reel in the Caliber, however. Its reliability(hearing quite a few complaints), its terrible rearward visibility, & its lack of space efficiency which makes it more difficult to get high mileage while still being comfortably utilitarian. A true econo car type myself, I love the Caliber for its magic carpet CVT ride...& extraordinary featherfooting on my part is giving me 35MPG highway. For $14,000 I got A/C, anti-lock brakes, & the CVT...& a Caliber without the seeming problems others are having.