|
|
GM is introducing a new 5L50-E five-speed automatic transmission, designed to handle the strong power of the next-generation Northstar V8 (used in the XLR Corvette-based sports car and the SRX). GM claims it is "one of the most technologically advanced transmissions on any highway or autobahn in the industry." (Think that autobahn reference is pitched at the Mercedes transmissions to be used in large Chryslers?)
As far as we know, Chrysler is not working on new transmissions for its minivans and other front-wheel drive vehicles, though Mitsubishi transmissions are almost certain to be used in all future front-drive cars and would probably make their way eventually into minivans as well.
One stated reason for the "merger," if you can remember back when Chrysler Corporation existed, was so Mercedes could use Chrysler's highly efficient manufacturing system, itself based loosely on Honda and Toyota systems. Now, according to Detroit News, Mercedes has indeed been changing its manufacturing, though that newspaper (no doubt led by Mercedes executives) credits General Motors, not Chrysler, with the change. They point out that the number of Mercedes cars that can be driven off the assembly line to dealers without repair has jumped to 84 percent - still not quite as good as the Chevy Impala's 90 percent. (We'd be curious to know that figure for the PT Cruiser, which has bested just about all Mercedes in quality according to a consumer magazine survey).
/opinion/ It's quite possible that Chrysler was not credited for the success because DCX has a vested interest in maintaining an image of Chrysler as "crippled" before the takeover. There are groups of people who want to separate the two, and irregularities in the takeover - notably its positioning as a merger - may provide some legal ground for separation. To the extent that a lawsuit can be fought in the public arena, DCX has been successful in convincing people that Chrysler could not stand on its own. Crediting Chrysler with an efficient, high quality manufacturing process would not help that cause. On the other hand, it could be that Daniel Howes, who wrote the piece, simply assumed Mercedes was using the GM model because he knows it better, or indeed that Mercedes is using the GM model and ignoring Chrysler - though that seems less likely. /opinion ends/
Ford posted a sales gain of eight percent from August 2001 to August 2002 (month to month), losing some market share to GM (18 percent gain) and, to a lesser degree, Chrysler (24 percent gain, but off far fewer sales). Industry-wide, there was a 13 percent gain, based largely on massive incentives. Toyota, Honda, Subaru, Kia, Mitsubishi, and Hyundai also gained, with record sales. GM, whose market share is 28.5 percent, has already announced zero percent or low-interest financing and cash rebates up to $2,000 on most 2003 models (except Saturn, Saab and Hummer). Chrysler and Ford have matched zero percent financing on many 2003 models.
GM has announced they will continue aggressive incentives (including zero percent financing) into the new model year, with rebates and financing programs though October on selected 2003 vehicles. Meanwhile, Cadillac blew past not only Mercedes-Benz, but also BMW, taking the second spot in the luxury market. (courtesy Bill Cawthon)
GMC's latest ads have been going directly after the Dodge Ram, as Chevrolet has gone after Ford with its nearly-identical Silverado. Bill Cawthon noted: "The 'Mayor of Truckville' continues to defeat GMC's Sierra in the only polls that count. In August, the Ram almost doubled sales of the Sierra. The 'votes' were 40,440 for the Ram, 20,620 for the Sierra."
(News Analysis) There are always many factors behind decisions on whether to use a particular plant, some emotional and some rational. Though Chrysler invested a great deal of money in the Pillette Road assembly plant, where the current B-vans are made (not for much longer), Mercedes has chosen to eliminate Canada entirely as a location for its new Sprinter plant. (The Sprinter will eventually be sold only as a Dodge in the United States).
Bill Cawthon noted: "The biggest reason that DaimlerChrysler did not go with the Pillette Road plant is very likely that Canadian federal and provincial officials did not offer the large incentives currently on the table from a couple of southern states. The CAW, among others, pleaded with the Canadian government to make an offer on infrastructure and employee training, but the government thought Canada's lower cost of production would carry the day. The packages being offered to DC are reportedly in the neighborhood of $200 million over a multiyear period." [Your tax dollars at work!]
We asked Bill about the influence of unions in Mercedes' decision, given that Mercedes has preferred to open plants in areas without sympathy for unions, and that the Pillette Road infrastructure already exists complete with well trained employees. He responded: "Over the life of the plant, assuming no drastic shift in the balance between US and Canadian currencies, the savings [of using Pillete Road] would be pretty significant. However, that's not a sure thing. In the South, they are looking at no union and a government that is so grateful to have another basic industry employer that DaimlerChrysler would be able to call the shots fairly reliably (of course, that, too, could change). When you add a couple hundred million in incentives, the South looks might attractive."
Bill Cawthon currently writes for just-auto.com, which broke the news.
General Motors Corp. dealers sold 492,434 new cars and trucks in August in the United States, up 18 percent over last year. GM reported an increase in truck sales of 27 percent, and August retail truck deliveries were up 28 percent. GM's car sales were up 8 percent overall and increased 3 percent retail. For the year, GM's overall retail sales are up 8 percent and retail truck deliveries are up 18 percent. (Chrysler overall sales are nearly even with last year, thanks to a previously reported 24 percent rise in August over last year.)
GM (like Chrysler) has had heavy incentives in place, but has also launched several successful new vehicles, notably the TrailBlazer and CTS - which is probably why the incentives have corresponded with continued profits. GM is set to introduce new vehicles including a replacement for the Cavalier and is currently rolling out a new entry-level Saturn.
Chrysler sales, including Dodge and Jeep, rose 24 percent in August. Bill Cawthon wrote:
Total sales for August 2002 were 210,855, compared with 164,555 in August 2001. They are now within 1,741 units of their 2001 year-to-date sales pace.They were so happy, they were the first one to post August results on the newswires. (That could be just a matter of traffic, but I'd like to think otherwise). [Webmaster note: Chrysler tends to report in behind GM and Ford]
Those new heavy-duty Ram pickups could help in the future.
One side note: Cummins, who makes the diesel engines Dodge uses for the heavy duty pickups, was one of the few manufacturers who were ready for the new EPA regulations coming next month. Caterpillar, among others, was hoping to politic out of the agreement they made with the Department of Justice in 1998 (to avoid criminal charges of installing systems to defeat pollution-control devices on their engines). Cummins said, "We're not spending our energy trying to get out of something we agreed to in good faith. We're spending our energy on making sure we have the best products for our customers."
Good feelings all around. Hope it keeps up. Especially, as Chrysler did not play the incentives game as heavily as Ford and GM.
DCX has announced it will not build Mercedes Sprinters in Canada, leaving the fate of Chrysler's Pillette Road B-van plan looking grim, despite a large and recent (pre-takeover) investment. Sprinters are currently built in Germany and sent to Freightliner in kits, then assembled in the United States and sold under the Freightliner name. Over the next four years, Sprinters will be phased out as Freightliners and sold as Dodges instead, in a rare case of DCX sort-of admitting they had made a mistake. Chrysler's outdated B-series full-size vans are slated to be discontinued in the near future, and the Ram Wagon has seen its last year already (2002). Dodge once dominated the full-size van market, but has let many years go by without a substantial update.
| To view older news, go to page: 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 11 - 12 - 13 - 14 - 15 - 16 - 17 - 18 - 19 - 20 - 21 - 22 - 23 - 24 - 25 - 26 - 27 - 28 - 29 - 30 - 31 - 32 - 33 - 34 - 35 - 36 - 37 - 38 - 39 - 40 - 41 - 42 - 43 - 44 - 45 - 46 - 47 - 48 - 49 - 50 - 51 - 52 - 53 - 54 - 55 - 56 - 57 - 58 - 59 - 60 - 61 - 62 - 63 - 64 - 65 - 66 - 67 - 68 - 69 - 70 - 71 - 72 - 73 - 74 - 75 - 76 - 77 - 78 - 79 - 80 - 81 - 82 - 83 - 84 - 85 - 86 - 87 - 88 - 89 - 90 - 91 - 92 - 93 - 94 - 95 - 96 - 97 - 98 - 99 - 100 - 101 - 102 - 103 - 104 - 105 - 106 - |
| =Please read the terms of use.Mopar, Dodge, Jeep, and Chrysler are trademarks of DaimlerChrysler, AG. We are not affiliated with DaimlerChrysler. We are not responsible for the consequences of actions taken based on this site and make no guarantees regarding validity or applicability. Copyright (c) 1999-2000, David Zatz; copyright © 2001-2002 Allpar,LLC. All rights reserved. Owned by Allpar LLC. Recommend this page! |
