1998 news archives

December 30

The 2000 Neon was introduced and we have the details.

December 29

DaimlerChrysler will introduce the 2000 Neon at the LA Auto Show next Tuesday evening at Paramount Studios. The car will go on sale in January. This site will have details on the next-generation Neon tomorrow.

DC says it earned $158 billion in 1998, 13 percent more than the original companies combined.

Robert Sanders, of "Parents for Safer Air Bags," wrote in a letter to the editor that DC was at fault for a death caused by an airbag deployment, because their design was not as safe as it could have been, and because their 8 mph threshold is too low (the government has suggested 15 mph as a threshold, which the Webmaster things is more sensible, especially given the cost of new airbags and the likelihood of injury in a 8-14 mph crash).

December 23

Posted on our rumors board by b_blueberry - According to many magazines and websites the current neon two door will be dropped after one more year of production along side the new four door. The Neon will then spring into new vehicles like an inexpensive Prowler-esque convertible to compete with Cavalier and even a sport/cute.

Posted on our rumors board by Fred - Bob Eaton announced today that Plymouth would not be discontinued, but will eventually be a small car / sport utility brand. (Detroit News 12/22/98).

Detroit News reported on rumors Ford is talking about a possible merger with Honda. Honda is denying any rumors. However, Ford as $23 billion and may also be looking at Volvo or BMW. Volvo may be open to an offer, though BMW is not interested.

December 22

"Mopar Chick" reports:

Well, I found out that there is not going to be a 2.4 under the neon hood in the year 2000, but in the middle of that year they plan to present a 4 door wagon neon, a sporty roadster based on the neon (concept car) and also a neon based 4x4 sport utility concept vehicle, but that will in about 3 or 4 years, but the wagon should be introduced in either the end of 99 or the middle of 00.

December 17

DC will show a new PowerWagon concept vehicle in January. The re-take on the 1946 (and later) Power Wagons will feature an advanced diesel engine with relatively good fuel economy and emissions. More details will be released on January 3.

The president of the United Auto Workers union will be on the DaimlerChrysler supervisory board. German laws require these boards, similar to US boards of directors, to include ten management representatives who do not work for the company and 10 worker representatives. The German union, IG Metall, will also be represented (as it was under Daimler-Benz).

December 16

Gary Henson was named senior vice-president of manufacturing to replace retiring Dennis Pawley. He will take responsibility for worldwide assembly, stamping and component manufacturing for former Chrysler brands. Richard Schaum was promoted to senior vice-president for quality and powertrain operations.

GM has designed an interior trunk release handle after a series of children became trapped trunks last summer.

December 14

James Holden was placed in charge of worldwide Chrysler, Plymouth, Dodge, and Jeep marketing.

December 10

DC will invest $100 million in their Indianapolis Foundry to expand and modernize. The state is giving DC $500,000 to train its 951 workers.

Consumers Digest named the Caravan and Voyager "Best Buys" for the eleventh year in a row in its annual buyer's guide.

Kia is planning to sell an inexpensive minivan - the 2001 Sedona will be built on a car chassis with a 173 horsepower, 2.5-liter V6 engine (more than competitive with the Voyager) developed jointly with Rover. It will have dual sliding rear doors. (From Road and Track).

December 9

Production of the model year 2000 Neons has begun.

December 8

Carlos Zavala tells us that Chrysler de Mexico is finishing up a new Ram SUV, to be sold first in Mexico and possibly in the US.

Dennis K. Pawley, who revolutionized CC's manufacturing processes and turned them into among the world's most efficient, will retire to become a manufacturing consultant in January.

December 7

A New York jury found DaimlerChrysler 50% responsible for the death of an unbuckled five year old boy in a car accident and fined the company $750,000. He had been killed by the airbag in a 9-mph collision. Chrysler said that the boy's father drove his rented minivan the wrong way down a steep and narrow private drive before striking another car head. The father testified that he had put the boy's seat belt on but that his son frequently unbuckled it. The plaintiff noted that this ruling should apply to all companies which use airbags, not just Chrysler.

Government statistics estimate that airbags have saved 3,600 lives and caused 121 deaths.

US car sales were surpassed by SUV/minivan/pickup sales for the first time ever this month.

Chrysler US car sales climbed 6 percent in November, compared with last year, and light truck/SUV/minivan sales climbed 7 percent.

December 1

Newly appointed Chrysler Canada head William C. Glaub recently died of a heart attack following a boating accident. A few short weeks ago, his predecessor, Yves Landry, died of a heart attack.

November 20

Due for model year 2001: a Neon-based SUV and a redesigned Jeep Cherokee.

Hyundai is buying Kia, which made the Ford Aspire and Festiva for many years.

Some of Ford's engine-control computers are being investigated for failing to detect pollution problems, according to USA Today.

Sales of Japanese cars in the US: Toyota sales fell 17 percent. Nissan sales fell 14 percent. Honda sales dropped 20.4 percent. Mazda sales fell 7.1 percent. Mitsubishi sales increased by 11.5 percent, but were smaller than the other automakers.

November 20

Former Chrysler employees are somewhat upset that they will not be getting employee discounts on Mercedes cars.

November 19

A Mercedes plant in South America may be tapped to build Chrysler vehicles, while the formerly-CC minivan-SUV plant in Austria may used to build Mercedes SUVs.

The brands will not share platforms, according to spokesmen, but will share parts such as gearboxes and steering columns.

November 18

Bob Eaton made a rather confusing announcement regarding badge engineering and platform design. In brief, he said there will be no badge-engineering between Mercedes and Chrysler products. The upcoming Mercedes minivan may have the same basic platform but will be very different from Chrysler versions in ways other than styling. The new CHrysler design method of using cross-functional teams to design cars will be adopted by Mercedes.

November 17

DC (DaimlerChrysler) is increasing 300M production due to high demand in Europe and North America.

DC is exploring the idea of building a more heavy-duty full-size pickup truck to compete against the F-Series Super Duty (which accounts for 40 percent of F sales), according to a Chrysler rep. DC makes both Dodge trucks and Freightliner medium and heavy trucks. The new heavier-duty light pickup could be introduced in model year 2003, and be based on the next-generation platform.

Matt Gordon tells us Bob Lutz joined Exide Battery Corp, resulting in a stock price increase...

Standard and Poor's assigned its single-'A'-plus/'A-1' corporate credit ratings to DaimlerChrysler AG.

Detroit News tell us that an airbag saved former CC Chair Robert Eaton from injury when the 300M sedan he was riding in was in an accident in Detroit.

November 16

All sorts of activities as DaimlerChrysler publicizes itself.

The Chrysler 300M is Motor Trend's 1999 Car of the Year.

The 1999 Grand Cherokee is 4-Wheel & Off-Road's '4x4 of the Year'.

November 13

Chrysler is gone.

Ford is idling two plants (Escort/Tracer and Contour/Mystique) due to slow sales. DC (formerly CC) is shutting down the Sterling Heights cloud car plant presumably for the same reason, as well as the Belvidere Neon plant (for model changeover). The Neon plant will be down for about three weeks and will resurface with 2000 Neons in December. Expect delivery to dealers in January.

November 11

The Neon platform is rumored to destined to spawn a hatchback version for Europe in 1999 (2000 model year), as well as a small minivan in 2000 and an SUV in 2001.

November 9

D.R. Padnes informed us that the 4.7 V-8 problem was a vibration in the drivetrain that required some modification and this has caused a parts delay. (Ref. November 5 news). So now you know...

November 6

CC recognized their own staff and suppliers BASF, Eurotech, Philip Services, and Magna for their development of the world's first application of a chemically recycled polyurethane, containing 25 percent reclaimed polyol from scrap automobile fascias.

The Viper team introduced this newly recycled material when it designed and produced the 1998 Viper Roadster's left and right roof rails. The recycled plastic is derived from the chemical glycolysis of post-consumer and/or post-industrial bumper fascias. It produces raw material equivalent to virgin polyol, so polyurethane bumper fascias can be completely recycled. Prior pocesses used under 10 percent of recovered scrap.

The Detroit recovery plant, operated by Philip Services, can process over 10 million pounds of recycled polyol a year-- material that can now be used for many automotive urethane applications.

November 5

We've heard of unexplained delays on getting the new 4.7 liter V-8 engine in 1999 Grand Cherokees. Confirmation, explanation, disputation?

CC international sales plummeted again, this time by about 24 percent. Possible reason: impact of Odyssey, Sienna on minivan sales. Watch out, Renault/Mitra.

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