Allpar (Chrysler, Dodge, Plymouth, etc. enthusiast site) 
Chrysler News From The Year 2000!

December 31 (Update 4:40 pm EST)

Vipers win! The Dodge Viper finished 3rd, 4th, and 8th overall in the race at Adelaide, Australia, taking a 1-2-3 win in the GTS class. Vipers were ahead of the Cadillac prototypes (20th and 21st position), the Audi R8, and even the Panoz LMP-1. 25 cars were at the standing grid, and all finished.

Next year, Chrysler will be racing a prototype of the next-generation Viper at Lemans. In their absence, the Corvettes may just win, though they have been soundly pummelled by the Viper through this time. (GM is, unlike Chrysler, likely to trumpet their victory through ads; oddly, Chrysler has done nothing to capitalize on the Viper's amazing success, just like it ignored the Neon ACR's early success in the mid-90s).

We look forward to seeing the next generation of Vipers wipe the floor with competitors in 2002...

The aforementioned safety upgrades to the 2001 minivans are being implemented as a running change, according to "Mr. Insider." We'd like to verify this with a trip to the Chrysler web site, but we've noticed that press information has become relatively scant since the takeover - either that or it is being distributed in a way which takes us out of the loop.

December 30 - Updated 7 pm, EST

Dieter Zetsche has created six teams to work on Chrysler's recovery, according to Automotive News. Four are working on cost management while the other two look at revenues and products. Dieter Zetsche himself is workin gon revenues and products. The final plan will be presented on February 26, and will "reflect difficult choices." (Not a good sign). Layoffs are expected, as well as at least one, probably two, factory closings.

Chrysler will apparently retain its $36 billion product plan but Zetsche's teams are seeking to cut costs in that plan without sacrificing quality. (Holden had cut the product plan to $24 billion before leaving). Zetsche also indicated that Chrysler was autonomous in its decisions, and that the DCX top management in Stuttgart would not be calling the shots - other than installing new top managers, that is.

As noted earlier, Chrysler's sales fell 14.7 percent from last December. However, Ford sales fell 15.6 percent and GM fell 13.3 percent despite aggressive advertising.

"Mr. Insider" provided a credible report that Chrysler is beefing up the front crash protection in its minivans, seeking the same five stars as Ford's otherwise-far-inferior Windstar.

All of James Holden's final and rather foolish actions, such as slashing the development budget and cancelling the full-size SUV, have apparently been ignored since Holden's departure. The status of the full-size SUV and also the Hemi 300 convertible are still up in the air, as of this moment. We suspect they will both be eliminated, but the possibility remains. If you really want the 300C, then, write to Chrysler right now. Only enthusiasm manifested in letters and phone calls will get these cars produced.

One of the first platforms to be jointly developed by Chrysler and Mitsubishi will be the Galant. This may mean that the next-generation Stratus coupe and sedan will actually be on the same platform, since the Galant is the basis for the Eclipse and Stratus/Sebring Coupes. The automakers will also produce cars for each other, despite recent exposure of Mitsubishi's quality problems. Expect to see more rebadged Mitsubishis, but also expect to see some Chrysler input into Mitsubishi designs.

Comments and feedback, as usual, can be posted at the news board.

December 29 (late updates)

A worker at the Bramalea plant (LH) wrote to say that, though they were only to be laid off one week after the holidays, they received letters to stay home one extra week as well.

Chrysler sales are down 14.7 percent compared with last December, month-to-month. As a whole, Chrysler Group is expected to be profitable for 2000, though it will not contribute half of DCX's profits as it did last year - since Chrysler Group's profits for the year are roughly half what they were in 1999. To be fair, journalists call Chrysler "troubled" for this performance, while DCX's other divisions have never paid their way as well as Chrysler has even in 2000. (2001 may be a different story, but it is hard to predict the sales impact of the new Sebring/Stratus, minivans [after the glut dissipates], and hopefully new trucks).

A bit of good news today as Detroit News suggests Chrysler may put its new Crossfire 2-seater into production. Here's the article. The car would probably replace the Prowler at the low-volume custom plant that produces the Viper and Prowler now. The Crossfire would be an image car for Chrysler, comparable to the Audi TT and Porsche Boxter. It would be powered by the 2.7 liter V6, supercharged to bring speeds matching its looks. As far as we can tell, no mention of the Crossfire is on any of DCX's web sites.

December 28

With Lou Patane's retirement as head of Chrysler motorsports, people are speculating that, as with Chrysler's seats on the DCX Board, the vacancy will not be filled by an American, and that all Chrysler motorsports decisions will come from Germany.

Car-Truck Buzz ran a moderately confusing story suggesting both that Chrysler's factory sponsorship of Team ORECA (which has driven Vipers to great success) will end, and that it may well be resumed when the next-generation Viper (or its replacement) is built. The Viper is one of the most successful production-based racing cars in American history.

Ted Musgrave will reportedly switch from racing Ford trucks to Dodge trucks next season.

December 27

Car and Driver has an article on the new Chrysler Sebring. They note that, due to its weight, it is only slightly faster (and stops only a little better) than the previous model, making it relatively slow for its class, despite its 200 hp V6 engine. (It is not available with a manual transmission, which would speed it up quite a bit). However, they generally liked it, noting a quality feel and good handling.

Car and Driver also noted that racer John Lingenfelter's company, Lingenfelter Performance Engineering, has chosen to modify Vipers. The company had gained acclaim for its Corvette mods (1998 Corvette ZR1 is mentioned). He started with two packages last Fall, both in the $30,000s, one of which raises horsepower to 670 hp and one which goes up to 725 hp. The latter went from 0 to 60 in 3.3 seconds, and hit the quarter mile in 11 seconds flat. That makes it faster than Hennessy's Venom and LRE's own ZR-1. Click here for the article.

Despite the new minivans and Sebring, Chrysler only garnered one "Ten Best Cars" award - for the PT Cruiser, of course! Other award winners were the BMW 3 and 5 series, Audi TT and A6, Ford Focus, Honda Accord and S2000, Mazda Miata, and Porsche Boxter.

December 25 - Merry Christmas

Detroit News ran an article on how little synergy has really occured at DCX, partly because Mercedes people look down on Chrysler, and partly because Mercedes parts are often too expensive for Chrysler vehicles. The article points out that the DCX headquarters building only wears the Mercedes star, not the Pentastar of Chrysler.

December 21 (PM) - Happy Hanukkah

Pictures of the new Jeep Liberty have been published ahead of schedule at http://www.jeepclub.co.uk/news/newcherry.html . The Liberty will replace the Cherokee in Europe and possibly other parts of the world, and will actually be given the Cherokee name, which has decent recognition. The old Cherokee will be sold in the United States at least through 2003 if current plans remain stable, alongside the Liberty. It has a fairly traditional look to the body, with a new nose that looks like an Audi take on the Jeep Cherokee.

As expected, the Liberty/Cherokee has a independent front suspension, optional 3.7 liter V6 (based on the Next Generation 4.7 V8), rear or four wheel drive, and base 2.4 liter with about 154 hp (UK trim). Europeans will be able to buy a 2.5 liter 140 hp turbodiesel with direct injection. The 3.7 will reportedly generate 210 hp - in UK trim, again. (Information from CAR magazine). The top model will reportedly have the Grand Cherokee's full time four wheel drive with the V6, while other models will have part time four wheel drive.

Pricing is set between the Cherokee and Grand Cherokee, starting at about $20,000 and escalating rapidly. The interior is larger than the current Cherokee.

<Åp>ÅLp>ÅLou ÅPatane, ÅChrysler ÅVP Åof Åmotor Åsports, is reportedly retiring. Some believe this indicates that Daimler-Benz is planning cutbacks in Chrysler's racing efforts, which include a highly successful Le Mans effort (Vipers), NHRA sponsorship, Winston Cup (trucks), and a new NASCAR series. Most likely to disappear, according to speculation, are NHRA and dirt track efforts despite Chrysler's success there.

Correction - December 20

Bill Cawthon wrote: Your report that Volvo is buying Renault is incorrect. Volvo is buying Renault Ventures (aka RVI), which owns Mack Truck. Volvo will have no ownership of Nissan. The requirement that Volvo divest either its own or Mack's low cab operation was demanded by the FTC. The deal had already been approved by the EU, after Volvo agreed to sever ties with Scania.

In any event, Volvo nows owns White, GM's heavy truck operation, Autocar, Mack, and of course, Volvo truck names (Volvo dropped the White and GM nameplates a couple of years ago). DaimlerChrysler owns Ford's heavy truck operation (now called Sterling), Freightliner, American LaFrance, Thomas-Built Buses, Western Star, Mercedes, Setra, Orion and Detroit Diesel.

The only American-controlled major truck manufacturers are PACCAR's Peterbilt and Kenworth and Navistar.

December 20

Dieter Zetsche announced that Chrylser would give up market share for higher earnings, a strategy opposite to GM's. At least one plant closing is expected, but Zetsche would only say he would not rule out closings. Layoffs are also strongly expected. The $36 billion five-year product development budget is under scrutiny but no decisions have been made.

Not surprisingly, Mercedes-Benz profits have increased - not surprisingly because Mercedes has received an increasingly large amount of Chrysler's revenue, as accounting tricks have drained DCX's cash cow to make Mercedes look better.

The new GMC Envoy/Chevy Trailblazer is shaping up as a winner, with a well-designed interior, good brakes, and considerably more power than competitors - without a gas mileage penalty. Not bad, considering that it is extremely heavy, even for its size, weighing in at 4,600 pounds. We hope it helps GM against the Explorer and Mountaineer, without squishing the Durango.

The average gas mileage of American vehicles is at a 20-year low.

December 18

Reports of losses continue at Chrysler, with a dismal fourth quarter and a projection of up to $2 billion in losses in 2001 (Detroit News). Though we still expect an overall profit for 2000, the next year will be difficult. German executives appear to believe this is the fault of Chrysler itself - indeed, some American newspapers have carried the story that way, following DaimlerChrysler announcements. We, on the other hand, note that a number of takeover issues have caused much of the current problem:

In short, largely because of Mercedes arrogance, rather than realizing massive savings from buying Chrysler, Daimler-Benz merely destroyed Chrysler's profitability.

We are still awaiting the vaunted Mercedes technology, such as navigation systems and active suspensions, to make their way into Chrysler vehicles. Perhaps they are planned for the next-generation LH and Grand Cherokee; perhaps not. But we would like to know whether Mercedes will actually allow Chrysler to use any of its technology - and what the price tag will be.

On the lighter side, many within Chrysler support Dieter Zetsche and believe that he will be good for the company in the long run. We are still reserving our judgement, though, noting (a) the absence of increased PT Cruiser production, (b) the apparent continuation of James Holden's inane budget cuts, and (c) the attitude remaining at DCX that Mitsubishi and Mercedes must "rescue" Chrysler, which would not need rescuing if Mercedes had not shown up, stolen all the cash, and cut itself in for a major piece of the pie.

Agence France-Presse posted a remarkably ignorant article on the financial impact at DCX, blaming Chrysler for dragging down profits (apparently Chrysler is supposed to make enough profit to support the entire Daimler-Benz empire) and suggesting that Chrysler has invested nothing in cars - despite the all-new Stratus and PT Cruiser, or the nearly-new LH series. They did not criticize the current solution for Chrysler's problems, namely cutting the car development budgets.

December 16

We have confirmation - the Windsor plant will be building the new CS in addition to minivans. The CS is a new sport-wagon.

The Big Three are all idling more plants over the holiday season. Idling of the Windsor Chrysler plant angered the Canadian Auto Workers, as they had been promised by Dieter Zetsche that there would be no more plant closings until after the holidays. Zetsche reportedly responded that the plant was being upgraded for future production, which was overall a good thing.

December 15 - 2 pm EST

Rumors still abound as to the identity of the new car to be built at the Windsor minivan plant. Will it be a minivan-based SUV? The PT Cruiser? Next-generation Ram truck? Nobody seems to know for sure.

"Heartsick Chrysler engineer" posted what we have been thinking: Outdated products? I think this mis-information is a result of firing the Chrysler PR Vice President and staff, and replacing them with German propaganda agents. LH (Intrepid,300M etc) is 3yrs old, but still cutting edge. Stratus/Sebring is all new, including powertrain, for 2001. (But Germany slashed the marketing budget.) PT is so new and hot we can't build them fast enough. Ram, Viper, Prowler are still on top of the game. In fact, the awsome Viper is the OLDEST Chrysler product in the lineup! A new Cherokee is in the wings. Where is all this "outdated product" we keep hearing about? "Outdated" manufacturing plants? Our lines are so productive, Chrysler was the 2nd lowest cost manufacturer in the world, until the German occupation.

We're not so sure the Ram isn't outdated, but a new one is coming next year. The 300M and Intrepid are certainly the best choices in their price class, in our opinion, and yes, the Jeep Liberty is on tap. Even the Neon is fresh, albeit poorly styled and named. So when the "memory-free" news media refer to Chrysler's "outdated" lineup and "overspending," let us just remember that three months ago they were the "cost-cutting leaders" and "market leaders."

December 14 - 1:30 pm EST

Chrysler and Hyundai are reportedly discussing plant sharing - Hyundai would produce cars at underused or unused Chrysler plants. Production of a Hyundai or Kia at a Chrysler plant would start in 2004.

The new vehicle to be built at the Windsor, Ontario plant is expected to be the Chrysler CS, which combines a car-like ride with SUV appearance, according to a Reuters article. Originally, we had thought Chrysler might be adding PT Cruiser production at the plant. No word yet on how DCX will use Chrysler's full-size van plant in Canada when production of the vans stops. (AP speculated that the line might be used to build 2002 Rams, and we had previously suspected that they might build PT Cruisers there, since until recently Chrysler would not have planned on vacant capacity at Windsor).

Though Deutsche Bank lost about $8 billion on its DCX investment since January 1999, and though DCX has long $70 billion in shareholder value in total since that time, Deutsche Bank has endorsed Jurgen Schrempp. One reason for this, according to Automotive News Europe, is that the chair of both companies' supervisory boards is Hilmar Kopper, a long-time Schrempp supporter. Others have not been so impressed with Schrempp, and a stockholder group in Germany has sought the resignations of both Schrempp and Kopper. They are asking for the return of former Mercedes head Helmut Werner, who opposed the mid-1990s absorption of Mercedes-Benz into Daimler-Benz.

Please see the first story in yesterday's news, if you have not already, for elaboration - DCX says they are not planning a reorganization which would lump Chrysler, Mitsubishi, and Smart together. However, DCX is planning to merge Mitsubishi and Chrysler in terms of vehicle design and platform sharing. Some news sources have referred to this is Mitsubishi saving Chrysler; we do not understand that perspective, given that Chrysler has been more profitable than Mitsubishi in recent years, this past quarter's losses notwithstanding. (Chrysler is still expected to end the year with a profit.)

GM's CEO replaced the CFO with a Ford executive, who reportedly will gain sweeping powers. This follows the ending of the Oldsmobile brand (to be phased in over several years) and planned cuts of 15,000 jobs worldwide over the next year and a half, through attrition and early retirement where possible. GM CEO Rick Wagoner also announced that he would close a Vauxhall (Opel) plant in England. While General Motors is still very profitable, it sees declining sales.

Question for discussion. Many have noted that, while American car sales (we'll throw Chrysler in) have been declining - sometimes precipitously - foreign car sales are continuing to grow. Indeed, even American truck sales are growing. We suspect one reason is that, with the boom in luxury and near-luxury cars having been in place for several years, many people are opting for used "expensive" cars rather than new entry-level cars. What are your opinions? Post them here.

Allpar has added a number of owner/enthusiast forums, including a place to write and publish your own car reviews, or commentary on our car reviews. Click here to see a list.

December 13 (final)

A. Hughes provided us with a quote from DCX's web site, which denies any forthcoming reorganization. They reported that their current four divisions, Chrysler Group being one, are satisfactory. It is hard to tell whether they were using a leak to Capital as a "trial balloon," are again misleading the public as to their true intent, or whether Capital was trying to get cheap publicity - or was just wrong. In any case, we will hope for the best. We note that every group CEO Dieter Zetsche has spoken with (that we know of) has come away fairly optimistic.

An unidentified American has purchased large blocks of DaimlerChrysler stock, raising the price by 2 percent.

General Motors is eliminating 10,000 jobs to cut costs, despite continuing profits. Meanwhile, Oldsmobile dealers are understandably upset with the company for eliminating America's oldest auto marque, though Oldsmobile has not been independent for many, many years. Oldsmobile was started by Ransom Olds in 1897.

December 12

German magazine Capital, quoted by Reuters, Bloomberg, and others, said that DaimlerChrysler's reorganization, to be voted on by the controlling board around February, would divide the automotive parts of the company into:

Other details of the plan include a merging of Chrysler and Mitsubishi design staffs, with full control over all technical development to be in Stuttgart.

Other sources have already reported that while Mercedes dealers in Mexico will sell the Smart car, Chrysler dealers will rebadge more Hyundais under the Dodge label.

This is very important news. If true, Chrysler will basically end as an independent entity, not even qualifying as a division of Daimler-Benz. It will have the same status as Oldsmobile within General Motors, at best.

If you are a stockholder, now is the time to protest and to call for Schrempp's ouster. If you are not a stockholder, write to DaimlerChrysler and to Federal authorities. For DaimlerChrysler, note that this does not make business sense; prior to September, few would question Chrysler's greater ability to survive. For Federal authorities, bring up that this is clearly not a merger, and that Daimler-Benz committed fraud when they posed a takeover as a merger. If you were a Chrysler stockholder, consider joining one of the class action suits.

Chrysler will start selling more Mitsubishis under its own label in the near future, according to the Financial Times' German edition. The companies will "jointly" develop and sell cars under the new plan. Those who recall "jointly" designed vehicles of the past, such as the Avenger/Sebring, current Sebring Coupe, and Dodge Stealth, may rightly feel alarm at this prospect.

A Mercedes executive declared that no Mercedes would have any Chrysler parts, and that Mercedes technologies would be used exclusively on Mercedes vehicles "at first" rather than being spread through the company's other marques. The first statement would seem to be contradicted by the next-generation Mercedes SUV, based heavily on the Grand Cherokee. On the other hand, we suspect Mercedes executives will soon be retroactively claiming the Grand Cherokee as a Mercedes, and taking credit for the success of the shared platform. Jeep is also likely to be separated from Chrysler in the new organization, if it proceeds as reported by Capital.

GM has started to phase out Oldsmobile, according to several sources.

We accidentally removed our links to our own performance board - click here to continue.

December 11

A Detroit News article notes that Chrysler's odd insistence on production both 2000 and 2001 minivans at once - lauded by analysts since it kept the assembly lines open - most likely resulted in low initial sales for the 2001 minivans. Customers had to be convinced to buy the old models with large incentives, leaving fewer new buyers for the 2000s.

December 8

It's official now - Chrysler is asking suppliers for cost cuts averaging 15 percent. Ordered by new COO Wolfgang Bernhard, the "request" includes a demand for an immediate 5 percent cut in all parts and services. The price reductions are "non-negotiable." The cuts are needed to keep Chrysler profitable even as the former company funds Mercedes' success through consulting fees and other questionable accounting tricks.

Honda is finally planning to build an SUV, called Model X. The squarish vehicle is targeted at college-aged men.

December 6

Even though Chrysler is under intense pressure to make enough money to earn a profit despite enormous rakeoffs to Mercedes, the Smart car unit of DCX reportedly is under no pressure to be profitable until at least 2004.

As previously announced here, Thomas Sidlik will join the board of Hyundai Motor, according to Detroit News. He will continue to work in the US as head of purchasing and supply.

DCX has announced a reorganization of German dealerships which could result in a loss of a third of the Chrysler dealers in Germany. Mercedes dealers will be able to sell Chryslers from separate facilities. About 100 Chryslers per dealership were sold this year in Germany (22,000 altogether).

Firestone has announced it will not declare bankruptcy, while 29 more deaths have been reported in the government's investigation.

Saturn will sell cars on the Web.

December 5

According to postings on our news and rumors board, the class action lawsuit against DCX seeks to separate Chrysler from Daimler-Benz again, and to return all Chrysler assets to the revived company (which would presumably become the property of the same shareholders as DaimlerChrysler is now, in the same proportions, unless shareholders were given a choice of which company to hold stock in). This includes the billions of dollars of cash reserves designed to ensure that hard times did not cause massive layoffs and an end to product development.

Many people have now told us that whenever Chrysler people speak with their German counterparts, they must pay all expenses, including stiff consulting fees. As far as we know there is no reciprocal arrangement - if a Mercedes engineer wants to know how Chrysler does something, according to what we have heard, Chrysler pays the tab. That would certainly explain the sudden deficit (combined with retooling costs of moving to Mercedes diesels and payments for the use of Mercedes differentials and transmissions in future cars).

Detroit News ran a very interesting, concise editorial on the takeover.

An anti-takeover site, chryslertakeover.com, is back up.

DCX is cutting back minivan production in Windsor by 18 percent. This is an odd choice, since the quality in the Windsor plant has historically been far superior to the American minivan plant. We still wonder why nobody is considering building a PT Cruiser line in one of the "less popular" vehicle plants - like the one which builds full size vans, and was earmarked to make full size SUVs before that project was cancelled.

December 4

Chrysler executive Tom Sidlick has joined the board of Hyundai, as part of DaimlerChrysler's partial takeover of the Korean automaker (which owns Kia).

Though Chrysler has saved $2.4 billion due to its supplier partnership ("SCORE"), it is now resorting to strong-arm tactics to get suppliers to lower their prices. Chrysler is set up as an assembler, so that most of the cost of building a vehicle is related to other companies' costs.

Ford has also started to cut production, idling plants to reduce its North American vehicle count by 39,000 cars and trucks. Ford sales for November (all these figures are for the US only) were down 8 percent, mainly due to a 17 point plummet in car sales. GM sales fell 8 percent, roughly equally divided between cars and trucks. Chrysler sales were down five percent, mainly in cars as trucks stayed nearly stable. The sales appear to be moving over to foreign companies, as Toyota enjoyed a four percent increase, Honda moved up three percent, and Nissan lept up 7 percent. European automakers generally had sales increases as well. Ford has also recalled the Explorer yet again, this time due to suspension part failures.

December 1

DaimlerChrysler has cancelled contracts with all 240 German dealers, in order to sell Chryslers through DCX-owned outlets.

A member of DaimlerChrysler's supervisory board has blamed Chrysler managers for the company's current malaise, saying they were not given all the facts. Meanwhile, another round of temporary factory closings is planned, with 12 plants going idle. We at Allpar credit the drop in sales to three major factors: the tactlessness of German executives turning off North American buyers, the loss of the Plymouth brand, and the news media reports of Chrysler's continuing problems.

Chrysler has recalled 1993 and 1994 minivans to fix a problem that can cause loose steering wheels. No accidents due to this problem have been reported, and that owners of all 769,000 affected minivans will be contacted shortly.

German shareholder Ekkehard Wenger is pushing DCX to fire Schrempp and divest itself Chrysler. Wenger argues that the merger was a bad idea and that American managers should have been fired sooner.

November 29 (updated 1:15 pm EST)

Sources within Chrysler's Auburn Hills headquarters have described it as (paraphrased) a war zone. Though Mercedes and Daimler-Benz are grossly overstaffed, cuts are apparently being sought only at Chrysler. The high-performance IT group, which is a fraction of the size of Mercedes' IT department and yet has accomplished much more - indeed, has logged many firsts in the industry - is being hard hit. The loss of James Holden does not seem to have eased the problem. Dieter Zetsche has expressed a desire to cut Chrysler's staff by thousands of employees, and indeed to shut down at least one factory. Meanwhile, plans are under way to convert Chrysler's plants to the Mercedes methods of production, though Chrysler's quality has recently seen dramatic improvements (particularly and ironically in the defunct Plymouth line). Not surprisingly, since Zetsche and his 24 new executives are all from Daimler-Benz, no mention has been made of reviving Plymouth, though much evidence indicates that the main reason for Chrysler's sales drop is the loss of that marque (as well as customer disgust with the way Daimler-Benz is handling the acquisition of Chrysler).

A class action lawsuit has been filed against DCX by a New York law firm on behalf of all Chrysler Corporation stockholders. The suit is based on the fact that Juergen Schremp and Daimler-Benz, AG fraudulently positioned the acquisition of Chrysler as a merger, thereby gaining control of the company for, essentially, nothing. The Kerkorian lawsuit filed recently asked for $8 billion in damages as well as breakup of the company.

November 28 (actually 11/27, 8 pm)

No great surprise - the UAW refused to reopen its contract with DaimlerChrysler. DCX had asked the UAW to reopen negotiations so that thousands of UAW workers could be eliminated. We'd have been disappointed if they had allowed DCX to eliminate jobs...especially since, in the long run, Chrysler will need the extra production capability.

The new Jeep Liberty is reportedly to have a 3.7 liter V6 based on the 4.7 "Next Generation" V8, as well as a 2.4 liter four cylinder similar to those used on the PT Cruiser, minivans, and cloud cars. The Car Connection reported that the Liberty would not replace the Cherokee, but that the Cherokee would continue with minor changes, and presumably will be redesigned when the Wrangler (on which it is based) is changed.

Kirk Kerkorian, the billionaire greenmailer whose attempt to take over Chrysler (with deposted CEO Lee Iaccoca) gave him millions of dollars in profits, has filed a $9 billion lawsuit against DaimlerChrysler. Kerkorian, who owns four percent of the company, leveraged DCX CEO Juergen Schrempp's admission of dishonesty during the takeover by saying that he would not have voted for the deal if he had known it was a takeover rather than a mrger of equals. Kerkorian at that time owned 11 percent of Chrysler, and voted for the "merger." Kerkorian claimed in the lawsuit that Schrempp "fraudlently" led shareholders to vote for the deal. Defendants are DaimlerChrysler, Juergen Schrempp, Manfred Gentz, and Hilmar Kopper. Actual damages are listed as about $2 billion (half of which is lost share value and half of which is the premium he says a straight-out acquisition would have demanded), and $7 in punitive and other damages. Kerkorian claimed he was not seeking a stock buyout.

We're not sure how to interpret Kerkorian's lawsuit, any more than the appointment of Deiter Zetsche.

November 27 (Updated 4 pm EST)

DCX sent the January 2001 issue of Motor Trend out to nearly every journalist in their mailing lists to celebrate making the Car of the Year with the PT Cruiser. Here's an interesting note: though reporters have generally slammed the PT's engine, it gets from 0 to 60 mph in 8.6 seconds, which is nearly a half second faster than the vaunted Honda Civic EX, and is nearly the same as the Volvo V70 T5 Cross Country. (About two tenths of second slower than the Mazda Millenia S). Braking is very good, with the Cruiser going from 60 to 0 in 120 feet - lower than most other tested vehicles (the Civic required over fifteen more feet). Handling was decent, with a skidpad and slalom rating identical to the Civic EX. The skidpad was close (within .02 g) to the Audi AllRoad Quattro, Elantra GLS, Kia Rio, Lexus LS 430, and Volvo V70 T5 Cross Country - not bad for a crossover.

Word around town is that, as we suspected, much of Chrysler's financial problem is due to accounting tricks. Mercedes engineers are reportedly charging Chrysler counterparts for consulting time, and the retooling costs to use inferior and overpriced Mercedes diesels is an issue. Changes to dealer contracts in Germany are being opposed by German dealers, according to our sources, because they just about shut Chrysler out of the market. Likewise, switching to Mercedes financing hurts Chrysler sales and profits. It almost appears as though Chrysler was purchased as a financial support for an unhealthy Mercedes.

Automotive News ran this article on Wolfgang Bernhard, new Chrysler COO. In summary, he seems to be an innovator with an American style, who keeps company with plant workers and actually insisted on working on each of Mercedes' twelve assembly lines for at least three days apiece. Hopefully Zetsche will use this side of the equation rather than merely shutting everything down. There's no way to tell for a month or two.

November 22 - Updated!

According to "genciu," Jeep has announced that their new vehicle will be called the Liberty. This may be to avoid confusion between the Grand Cherokee and Cherokee, or between the current and new Cherokees. The new vehicle, formerly referred to as the Varsity, will be capable of taking on the Rubicon Trail. It will be built across the street from the current Cherokee and Wrangler factory.

Peter Johnstone told us that Consumer Report's 2001 Buying Guide rated Chrysler as the highest quality domestic manufacturer, above Ford and GM.

Dieter Zetsche sought to boost American Chrysler employees' morale by bringing in 24 high-priced German executives. On the lighter side, he has indicated to dealers that customer incentives will but cut back, which may help boost Chrysler's credibility among customers.

Dropping Ted Cunningham may not have been a terrible idea, given that Chrysler's sales and marketing have justly been criticized. While Ford and Honda emphasized quality, Chrysler ads often not only did not point out their cars' strengths, but emphasized rebates and incentives which devalued their image.

Meanwhile, Grand Cherokee and minivan sales appear to be down by a full 25 percent, despite a brand-new, much improved minivan. Part of the reason may be the publicity around Chrysler's troubles and the replacement of the last American Chrysler CEO.

A German contact tells us that Mercedes is trying to play Chrysler against Volkswagen in Germany, but Chrysler does not have fuel efficient vehicles to compete. Financing has been changed so it goes through Mercedes channels, and the percentage of cars financed by the manufacturer have dropped to half their prior level. Dealers have reportedly gone to court to fight new dealer contracts, which are damaging their ability to compete. Mercedes seems to be working on eliminating, rather than boosting, Chrysler's European presence. Based on this, we have to consider whether sharing showroom space in some countries is not akin to having the Cricket in America showrooms - something for dealers to put down so they can sell a shiny new Mercedes instead.

November 21

Dieter Zetsche had a chance to show Chrysler that the company was still in business, to increase morale by raising investment and showing that he valued the contributions of longtime Chrysler high performers. Instead, two more executives have been dropped, CAO Kathleen Oswald and Sales and Marketing EVP Ted Cunningham. DCX stock dropped yet again on the news, showing that investors seem to have a better sense of leadership than Daimler executives (at least, now they do - before the takeover, they showed an astonishing lack of intelligence).

Early reports are that Zetsche will try to turn Chrysler around not be increasing investment or trying to avoid warranty work through quality improvement, but through cutting manufacturing and supplier costs - a strategy which does not work for Chrysler.

November 20 - Updated

Jeff Stanislow wrote: "Just caught wind of a chat w/ Sterling Marlin (Dodge) on 11/21 @ 1:30 PM Eastern. Thought you might want to pass it along to your fans. to go to the chat, or find more info, go to talkcity.com and/or 4adodge.com." (And thanks for the good news.)

"Mr. Insider" has recently posted that Tony Cervone, respected head of Chrysler global communications, is next to leave.

As news of Chrysler's problems have become public, and following the announcement of the total loss of Chrysler's American leadership (such as it was after Bob Eaton's purges), dealer orders have fallen, resulting in likely factory production cutbacks. According to Detroit News, just about every single vehicle is facing overproduction, with weakened demand. Next week, the Neon plant will close for three days. (GM is also idling four plants for three days each). Orders for the PT Cruiser, though, have exceeded 2001 production by over 70,000 vehicles. No word yet on whether more capacity will be added by Zetsche - Holden had nixed the idea.

Dieter Zetsche is to meet with Chrysler executives at a town hall-style meeting today.

November 17

James Holden is now officially removed. DaimlerChrysler's supervisory board said it would "fundamentally reposition and restructure the business" (Chrysler Group), with details to come in early 2001.

November 16

New Chrysler Group president Dieter Zetsche will appoint a German from Mercedes to be Chrysler's chief operating officer, according to Detroit News. Wolfgang Bernhard will take over the position once held by Bob Lutz. He has an MBA from Columbia University, and a director of Mercedes' high-performance tuning unit, Mercedes AMG. He led the efficient launch of the Mercedes S-Class. Detroit News says that analysts believe that the first order of business will be to engineer a turnaround, rather than a cutback. Reversing the cuts ordered by James Holden would be a very good way to garner immediate support and counteract "German invasion" feelings. Some readers have already contacted Allpar to note that rumored delays of the Dodge Ram redesign, as well as some of the rumored cuts in product, would be simply suicidal. We hope Dieter Zetsche agrees.

November 15

You know something's wrong when Car & Driver reports "Daimler-Benz AG acquired Chrysler Corp. for $35 billion in 1998" as part of an article. Car & Driver today said that Holden had not yet officially been replaced, but that an announcement was due on Friday.

For in depth coverage of the management change, visit Detroit News.

Here's a brief rundown of what they have to say:

November 14 - James Holden gone!

DaimlerChrysler's supervisory board has kicked out James "products are old, so let's cut the product development budget" Holden, replacing him with the German head of Daimler's commercial vehicles unit, Dieter Zetsche. Holden's reign saw morale plummet, while a decade of work on Chrysler's organizational culture and supplier relations were sent to the scrap heap. Unfortunately, Zetsche is unlikely to be well received by Chrysler employees or managers, especially if he starts out with layoffs. Symbolically, this move also sends correct but unwanted signals that Chrysler has no power of its own, but is a mere subdivision of Daimler-Benz.

Zetsche had worked with James Holden on the brand positioning of all DCX marques, and according to Detroit News also worked with Freightliner to resist a union drive.

More as it comes in.

November 13

DCX is planning to slim Chrysler down, according to a Detroit News article. After blaming slow sales on lack of new product, DCX has cut Chrysler Group new product investment from $48 billion to $36 billion. The Neon will be dropped in 2004, according to current plans, or kept on in current form. The full size SUV is definitely gone, but the CS and replacements for the Cherokee and Durango are still on. The midsize and large car teams (Stratus and Intrepid) may be combined. On the lighter side, thanks to an attrition rate about three times normal, Chrysler will not need to spend money on early retirement packages. (On the darker side, in the long run, this employee turnover will definitely hurt).

The article also noted that the next generation of the LH series, which will have rear wheel drive, may be scaled back from five vehicles to two, which may indicate that the Charger R/T is a goner after all.

We are still convinced that at least some of the losses are due to accounting issues and the transfer of money into Mercedes coffers. Replacing Detroit Diesel engines with Mercedes engines can't be cheap. We still remember the quick and larcenous transfer of assets from Eastern to Continental when both were under control of the same robber baron.

Meanwhile, in Germany, Chrysler and Jeep vehicles will be sold at some Mercedes dealerships to increase Chrysler's presence. If successful, the strategy may be used in other nations as well, possibly expanded to include Mitsubishi. The action is being taken to cut distriubtion costs.

As for rumors, we do not think DCX is selling Chrysler to Honda, though Honda people have reportedly been seen around Auburn Hills. Nor do we think Chrysler will be spun off. We hope it does not await the fate of Fokker, and think it still has a few years left to turn itself around. We do suspect that James Holden's days as Chrysler CEO are numbered, and do not regret it.

According to The Car Connection, DCX will produce a Smart roadster in France for the 2003 model year. It will feature a $16,000 or so price tag, plastic body panels, and a 70 hp engine which should move it quickly given its low weight. (Mercedes seems to be far more tolerant of Smart losses than Chrysler losses. Or perhaps James Holden is overreacting).

The Michigan Minority Business Development Council voted DaimlerChrysler Corporation of the Year due to Chrysler Group's historic support of minority suppliers.

November 10

Contractor Special

As if to invalidate our past opinions, Chrysler has approved another new vehicle, this one a Ram hybrid. To compete with the upcoming Chevy Silverado hybrid, the Dodge Ram "Contractor Special" will feature a hybrid powertrain similar to that of the upcoming Durango hybrid, but with a choice of gas engines, apparently including the diesel option. The gas engine will drive the rear wheels, helped by the electric motor for the front wheels. The gas engine will also power a generator, providing electricity for either the electric motor or for other uses. The onboard generator, which can be used for creating standard alternating current, is the reason why this truck was dubbed the Contractor Special.

The new hybrid is expected to sell in 2004. The price is about $5,000 more than a standard Ram, but it is more powerful, has lower emissions, is about 15 percent more economical in fuel, and can be used as a standalone, 20 kW generator. (For example, with the 5.2 liter engine, gas mileage is about 2 mpg better than the standard model, and it is .6 second faster from zero to 60 mph). According to Car and Driver, the Contractor Special will be available with a variety of gas and diesel engines, on both the 1500 and 2500, and with both two and four wheel drive.

Forbes article

An article in Forbes (thanks, Torshon Ford) pointed out that Juergen Schrempp has three choices: letting Chrysler slowly die, selling the company, and making a dramatic gesture to show that Chrysler is an independent division (not using inferior Mercedes diesels would be a start). Since we think Schrempp is far better at politics and acquisition than at actaully running companies, we suspect the last option will not be taken. Say, wasn't Forbes in favor of the merger when it was happening?

November 9

While we wait to find out whether ballot formatting problems and the electoral college system have decided who will be President for the next four to eight years, here is some news that slipped by. NASCAR has approvied the Dodge car and engine for racing next year. Ford is coming out with a Focus-based panel van similar to the PT Cruiser Panel Van concept apparently nixed due to Jim Holden's fear of failure. Daewoo, which only recently was the subject of a heated bidding war, has been declared bankrupt. Honda profits dropped twelve percent due to the yen/dollar difference. (We suspect part of this was also unexpectedly high Odyssey repair costs, based on J.D. Power data from May 2000).

November 8

We don't know about you, but we were surprised to find out that the pollsters had it wrong. Most voters favor Al Gore (that's a very slender "most"). Probably if Ralph Nader had not siphoned off key votes, the race would be even more tilted in favor of Al Gore - who may or may not win the Presidency. We'll know tomorrow.

November 7 - UPDATED

Yet another Detroit News article describes DaimlerChrysler's CEO's problematic situation (due mainly to his own big mouth, and to appointing James Holden). Schrempp's recent statements have drawn much anger from Chrysler employees, especially when added to James Holden's seemingly-incompetent and crude cost-cutting moves.

One result of Chrysler's decision to consolidate its ad agencies is a change of Jeep's long-time agency, True North, responsible for a consistent and effective series of campaigns.

Chrysler's decision to not produce a full-size SUV may have been smarter than it looked to many observers, as Ford and GM continue to battle for this segment - and Toyota/Lexus and others muscle in as well.

Ford is recalling 430,000 Mustangs for a parking brake repair.

Daewoo defaulted on a major loan payment, making bankruptcy seem closer.

November 6

A Detroit News article reinforces what we have suspected - that Chrysler's suicidal cost-cutting binge appears to be an overreaction by James Holden, not an attempt by Mercedes to eliminate the company they just purchased. While German management has made it clear they expect Chrysler to stop the losses, they also apparently do not expect Chrysler to shut down operations completely in order to do that.

We at Allpar are also somewhat suspicious of the accounting - perhaps Chrysler is overpaying Mercedes and corporate functions? The switch to Mercedes components is surely not helping Chrysler's bottom line, and we have to wonder if some of the loss is not due to that. (This opinion is not supported by any evidence or rumors from Auburn Hills!)

November 3

Chrysler held a press conference to announce heavily discounted AOL access for their (and GM's) employees yesterday. In addition, Chrylser recently had its ad agencies create a new, consolidated organization called PentaMark Worldwide.

November 2

Chrysler Group sales dropped precipitously this month. While the industry as a whole dropped in US sales by .9 percent in October, Chrysler was down 7.4 percent. Ford also dropped 5.5 percent, though for the year Ford is ahead 3 percent over last year (to date). Big gainers so far this year are Nissan (up 13 percent), Toyota (up about 10 percent), and Honda (up about 8%). GM's 7 point rise in October is due mainly to incentives - its year to date sales are about even with last year. Analysts say the overall October numbers are not surprising, given the upcoming election. (Source: Detroit News article quoting Autodata).

Dodge Caravan sales fell about three percent in October. While Chrysler sales rose about 40 percent, keep in mind that if Chrysler's plans had been valid, they would have more than doubled as customers moved from Plymouths to equivalent Chryslers.

November 1

Ford said that Explorer sales have dived 16 percent since publicity about tire problems and rollovers.

General Motors will be coming out with several new entry-level cars, including a new Saturn and a new Cavalier based on the Opel Astra. A new small pickup is also due soon.  

October 31

Chrysler has recalled 1996-1999 and early 2000 minivans to fix a rare problem with the fuel rail. Parts are not yet available, but since this problem has affected only 43 vehicles (.0003% of those sold, or about one in every 32,558), this probably will not be a problem. The condition only affects vehicles driven under especially severe conditions which cause very high heat under the hood. As far as we can tell, there have been no deaths or injuries from this condition.

Juergen Schrempp, DaimlerChrysler CEO, said yesterday that he had always intended Chrysler to be a division of Daimler-Benz AG, and that now he has what he always wanted. He freely admitted to lying about his intentions and about the "merger of equals" concept. A Detroit News article noted the tactlessness of spending $5 million on a New York office at the same time Chrysler is laying off needed staff. ($5 million would keep a lot of jobs intact - jobs which are very dear to their current occupants).

News analysis.As Detroit News noted, it takes a lot of tactlessness to make an announcement like that. However, a look at Schrempp's career shows a man who cares nothing about other people's livelihoods, or about the businesses he takes over - such as the now-defunct Fokker, Detroit Diesel, Freightliner, and Chrysler. Schrempp's strategy is to be the master of the commercial trucking business, to keep Mercedes alive and healthy (in this case, through an injection of Chrysler technology, factories, and profits, and business - that is, the use of Mercedes parts), and to maintain a far-flung Daimler-Benz empire.

The question now for DaimlerChrysler stockholders, and especially for the board - for stockholders matter little unless they are on the board or heavy investors - is whether they need an egomaniacal cowboy at the helm, or someone who can really run a major corporation. Likewise, they need to decide whether Chrysler should be run by a bootlicker or by someone with real leadership skills and the courage to invest, not divest, when the chips are down.

Chrysler cost Daimler little, other than a name change. The company was a cash cow until this quarter, and will be again, if they invest in their people and their products now. But we think it sadly more likely that James Holden and Juergen Schrempp will easily sacrifice the livelihoods of Chrysler workers and the enthusiasm of Chrsyler buyers, not to mention the engineering prowess of Chrysler designers, on the bonfire of Schrempp's ego and the foolishness of Holden's knee-jerk, cost-cutter reactions.

October 30

Chrysler has chosen to cut costs by closing down (temporarily) a number of plants for "inventory adjustments." Curtis Redgap added:

As the ALLPAR group predicted some time ago, the eggs laid by Mr. Eaton have finally grown up to be chickens, and have come home to roost. Tonight on NBC news, the short announcement was made that the Newark DaimlerChrysler Plant was being closed, and lay offs would occur in over six other DaimlerChrysler production facillities. "Erratic sales over several months," was cited as the reasons.

Probably having spent an inordinate amount of time at my favorite Chrysler store has given me some insights that you aren't going to hear from the goofy leader CEO in Auburn Hills.

Anyone seen the new Sebring Coupe? I am telling you, style wise, it is a real attention getter. The front end almost looks like the new 2002 T-Bird. The rear, well,sorta like the 300. However, on the showroom floor, people want to believe it is......... (GASP) a PLYMOUTH! And they are stunned to learn that Chrysler is no longer building Plymouth. When they see it is a Chrysler, they just look confused.

A sort of different occurance happens when folks look at the new 2001 vans. A lot of them are return buyers. "Where's the new Plymouth Voyagers?" When they are told that Plymouth no longer exists, they act stunned. When shown the "Chrysler" Voyager, the reaction is nearly universal. "Oh, well, we really can't afford a Chrysler."

And the company says that sales have been "erratic?" Well, no kidding. The single best selling make that Chrysler ever had, and with dimwitted logic, they decide to cut that vehicle brand. Now they are facing the reality that without an entry into the "low priced field", they cannot compete. And with the stock being down some (ready for this?) 40%....... yes, I did say FORTY PER CENT, I would like to believe that all the good stock holders in America anyway, are getting a long awaited wake up call.

Unless someone acts, and does so VERY quickly now, DaimlerChrysler as a manufacturing entity in the USA has a very substantial risk of going away. There would be no recovery. Don't think it can't happen. In the car business when a company is percieved as being weak it is like a call to the sharks, and they begin circling chasing the blood trail.

DaimlerChrysler as an entity does not just manufacture automobiles in the USA. They have substantial holdings in trucks, diesel engines (just bought out the PENSKE part of Detroit Diesel) car parts, busses, and various other automotive ventures throughout the world. Losing Chrysler would be a loss, but potentially one that Daimler could absorb and recover from fairly quickly.

Plymouth needs to be revitalized and put on the forefront of Chrysler. In the traditional way, Plymouth was always the draw to get people in to the showrooms. Only now, Plymouth would need to be a stand alone place, as promised so many years ago. It is the only way Chrysler will stand a chance of survival in the business. Dodge cannot provide the "low priced, high value" image that exuded from Plymouth.

It is a shame that Chrysler has come to this. It could have been knocking on Chevrolet's door right now had the correct course been chosen. I don't why everyone seems to think that General Motors is not reachable. Ford is showing the world how to get it done. Chrysler needs to ge back in the hunt, and Plymouth needs to be showing the way.

...

Another angle that I was stunned to learn in the dealer's showroom is the implication that DaimlerChrysler is deliberately holding back on PT production! Now how smart is that? The single hottest selling vehicle on the North American Contienent and dealers can't get them. How long does Holden think the sweet desire to buy one will last? If people become frustrated they will go down the street to the local [xxx] dealer and get something else.

Now the Newark plant is being shut down. How much intelligence does it take to figure out that maybe.......... just maybe (as the ALLPAR group has instantly grasped) Newark should be converted to PT production!

It is one thing to order a car and wait. As long as you can give the customer a firm date on delivery, they will, in, 99.99%, of the time, wait for their car. If you have to tell them you don't know, and keep putting them off cited vague production reasons, then they become suspicious, like something is up. And up usually means something is "wrong." Sure, you can always sell a "customer reject" to someone else, however, each bad deal makes about 200 other people aware of the situation. The theory is that we all come into contact with approximately 200 people (on average) in out daily lives. If we mention our bad experience to them, they too have influence with 200 people and so on it goes. Shades of the AirFlow and the Edsel and the Vega. Bad news goes quickly.

Speaking of bad news, Chrysler announced today, Sunday October 29, 2000, that is recalling One Million, four hundred thousand, (1,400,000) minivans due to a fuel system situation that may cause a fire. However, the real gripe is that a fix won't be available until March 2001! Believe it or not.

It may not be time to get out the fork yet, as Chrysler may not be done. However, it has a huge image problem on its corporate hands and the situation does not look like it is sinking into anyone's head that has the intestinal fortitude to turn Daimler away and get Plymouth back on it's feet to save the corporate bacon. Thank you, Mr. Eaton, wherever you are.

October 27

Today, James Holden did not say: "We're losing money because of an aging product line. Let's get tough on the suppliers who have saved us over $2 billion, cut back on new products, and since we need to be leaner, let's lay off a bunch of people and force each department to justify its existence so they can concentrate on their work."

October 25

Michael Wortman passed along excerts from Car and Driver. The Jeep five-speed automatic has been modified again (renamed 545RFE) and now provides a second overdrive gear, which very slightly improves fuel economy (not enough to change EPA ratings). In addition, the 4.7 Power Tech V-8 will get a hydraulic fan, which is quieter and improves air conditioning power at idle - not much impact on economy, again. We don't know if that change applies to all the 4.7 "Next Generation" engines or just Jeeps.

October 24

A hybrid-electric Dodge Durango will go into production for the 2003 model year, according to Chrysler. The hybrid will get about 18.6 mpg, twenty percent better than the gasoline-only model. The Durango has a 3.9 liter V6 to power the rear wheels, and uses an electric motor to power the front wheels. The electric motor is recharged by the V6, as far as we can tell. The total package is only a little heavier than the standard Durango V-8, and is a little faster as well. The hybrid Durango will sell for about $3,000 more than the standard model. - Ford will make an Escape hybrid for 2003, and GM will follow with a Silverado hybrid in 2004.

DaimlerChrysler has purchased Global Electric Motorcars, which makes short-distance electric minicars. These little vehicles, which can go at slow-city speeds (about 25-30 mph), are legal in about half the states in the US, and quality for nonpolluting vehicle credits. G.E.M. makes about 5,000 per year.

The rumors are flying. Here's our current list.

Cost cutting moves we'd like to see: buying transmissions from someone else, such as Mitsubishi; using the MMC continuously variable transmission on the Neon if possible; cutting James Holden's salary in half; making executives fly coach; not renting space in the Chrysler building for travelling Mercedes executives.

As regards rumors - we would like to point out that rumors are just that. Any rumors reported by any publication about Chrysler are most likely false. Chrysler is notorious for disseminating false information to mislead competitors - we'll note that every source, including ourselves, had the redesigned Neon being four inches shorter, not longer!

October 20

DCX has fully integrated Detroit Diesel into the organization. Detroit Diesel stock is no longer traded.

The Ford recall ordered by a California judge (we learn from a South African site!) covers ignition modules in 1980s and 1990s Taurus, Mustang, Thunderbird, Escort and Bronco models - possibly others as well.

Standard and Poor's may cut DaimlerChrysler's credit rating, due to losses in the US and the purchase of over one third of scandal-ridden Mitsubishi (which owes almost $14 billion). Meanwhile, BMW is trying to sell two factories in the UK. Normally we'd suggest DCX purchase these, but the timing does not seem right. MG Rover Group, which essentially is Rover minus the Mini and these plants, is interested in purchasing the plant, since it uses most of the plant's output.

Ford, still being hit with discoveries that it seems to have ignored tire failures in other nations as well as the US, has also recalled its high-selling Focus.

Click here for a Detroit News story on death by driver distraction. Notable quote - a police officer saying he often pulls people over, suspecting they are drunk, only to find they are talking on the phone.

October 19

We have heard that there is a nationwide shortage of replacement catalytic converters for the 1995-97 Ram Van.

October 16

Only two days after a California judge ordered a recall (the first ever ordered by a state judge) of Ford vehicles with allegedly defective ignition systems, a group of lawyers has hit the company with a related class-action lawsuit. Class action suits are pending in five other states, as well. The California judge said that Ford clearly covered up the defect, while Ford claims that the vehicles are safe. (See past news for details).

October 13

A California state judge has ordered Ford to recall 1.7 million vehicles which could be prone to stalling. This unprecedented move by a state judge was based on the judge's opinion that Ford had known about the defect for nearly 20 years, but had done nothing to resolve it. This ruling only affects vehicles sold in California. According to internal studies, fixing the defect would have cost only $4 per vehicle.

Former Chrysler leader Thomas Stallkamp has joined MascoTech's board of directors as the supplier prepares to go private.

Sleeping giant General Motors has been busy lately. Even as they are readying a brand new straight-six engine, with the power of a small V8, for use in their new mid-sized Trailblazer SUV, and arranging to import Honda V-6 engines, they are adapting part of their Ontario plant for a brand new V-6 engine of their own design. This engine will be used in minivans and passenger cars. However, GM sees a rough fourth quarter ahead, following losses in Europe and lower than expected North American truck sales. The Blazer's sales in particular seem to be suffering as customers either wait for the next generation, due soon, or go to competitors. GM's truck share has dropped by more than two percentage points, a large decline.

October 12

Congress has approved rules which would grant more power to NHTSA in enforcing safety recalls, along with stiffer penalties for manufacturers.

A judge in California will soon decide whether to force Ford to recall millions of its vehicles to repair alleged ignition defects.

October 11

The History Channel did a special on the Top Ten Muscle Cars. Curtis Redgap tells us that they looked at the 1960s and 1970s, and actually chose three Mopars in the Top Ten.

Number Four was the 1971 Road Runner, with the 426 Hemi. It had the second fastest ET and terminal velocity in the quarter mile (14.1 seconds at 104 mph, bone stock). All the Road Runn er models were mentioned, including the Super Bird.

Number Five was the 1970 Cuda with the 426 Hemi. It had the fastest stock ET and terminal velocity of all ten (13.85 seconds at 107 mph, bone stock).

Number eight was the 1969 Dodge Charger, star of Bullit and the Dukes of Hazzard. ("CW" actually told us that Bullit used a 1968 Charger).

October 10

The Washington Post published a report which suggests that the Ford Explorer has a higher rate of tire-related accidents, regardless of whether the Explorer is clad with Firestones or Goodyears. Ford denied the veracity of the report. At issue is whether vehicle mileage should be considered - if vehicle mileage is ignored, the Explorer had double the rate of tire failure-related accidents as competitor vehicles in the Florida database. If vehicle mileage is compensated for, this is no longer the case. Based on reports so far, we suspect that the Explorer is more susceptible to tire failure, but also that the Firestones are more likely to fail.

Congress has approved funding for NHTSA to obtain a rollover index, provided the agency finds a better formula.

October 6

Chrysler Canada has instituted a five year, 100,000 kilometer warranty on all 2001 models. It is retroactive to 2001 models sold before the announcement. This warranty is transferrable, hopefully increasing resale values.

Chrysler has formed a hybrid-electric platform team, indicating that a new hybrid car should be produced by the Chrysler Group within the next four years.

Confirmation of our prior report - DCX has announced that Chrysler will indeed be building Mercedes five-speed automatics for use in Chrysler cars. The Mercedes W5A580 will be produced in Indiana starting in 2004 (yet, the cars it is to be used in will be produced starting in 2003, which implies that Mercedes will supply units directly for the first year or two).

Mercedes automatic will require a $455 million extension to the Kokomo plant. The twin transmission plants in Kokomo have been producing 400,000 transmissions per year, a number that should double soon as a result of a prior expansion. The Mercedes transmission will be probably be used in the Grand Cherokee and Durango as well as the new rear wheel drive LH models.

Mercedes also sells transmissions to Jaguar and Porsche.

October 5

Marc Spurgeon wrote that the Intrepid R/T is currently delayed as the factory repairs a quality issue.

October 3

Car Connection's spy shot of the 2003 Ram suggests that it will look very similar to the current model, but with four full doors and a large chrome cross-hair over the grille. They suggested that the Ram might appear earlier than the previously forecast summer-2002 estimate, and might even come out as a 2002 model. The best information on the Web suggests that the Cummins engine will be replaced by a Freightliner diesel, the 360 by a 5.7 Hemi, the 318 by a 4.7 Next-Generation V8 (it is also possibly, maybe even likely, that the Hemi will be standard, since it will reportedly cost as much as, or less than, the 4.7 to build).

October 2

Chrysler will produce the Mercedes WA580 transmission for use in future vehicles, including the Grand Cherokee, bringing a five-speed automatic to the high-end Chrysler lineup. This will alleviate potential problems regarding Mercedes' ability to produce enough transmissions for the upcoming 300N/Charger, which are said to be slated to use the WA580. The Mack Avenue plant is also being upgraded ($100 million worth) to produce more 4.7 liter V8 engines.

September 29

The all-new Chevrolet Trailblazer (according to Chevrolet not replacing the Chevy Blazer) will feature a 4.2 liter in-line six-cylinder engine, completely new, with 270 hp and 275 lb-ft of torque. The Trailblazer is larger than the Blazer, competing with the Durango. Gas mileage is relatively high, according to GM press materials. We expect Durango sales to take a big hit when the Trailblazer appears - fortunately the new Ram should be coming out at around the same time.

September 27

Jorge Espinosa told us that Chrysler de Mexico will produce a Stratus and Sebring with a 2.4 liter turbo DOHC engine, producing 215 hp (rather than the usual 200 hp). This engine will be made at Saltillo, and is needed because of the height of Mexico City and the resulting thin air. It will be presented to the public in one or two weeks.

Tom Gale, the man responsible for the looks of cars like the Viper and Intrepid, is announcing his retirement. He has been with Chrysler for 33 years, and is one of four Chrysler representatives on the DaimlerChrysler board. He seems to have been one of the last supporters of Plymouth, and helped to form the Viper, Prowler, PT Cruiser, 300M, and Dodge Ram pickups. One of his contributions to Chrysler was the idea that it is okay for some people to hate a design, as long as others love it. At 57, he has stayed on with Chrysler longer than he planned, and has said he has no intentions of taking a position Thomaswith another automaker.

Gale's current positions, as executive vice-president in charge of product development and design for Chrysler Group vehicles and general manager of Chrysler Group cars, will be split between an engineering exec, Rich Schaum, and design chief (recently hired from VW/Audi) Freeman Thomas. (Facts from the Detroit News article by Bill Vlasic).

September 24

According to another Chrysler insider, the decision to make the Panel Truck and GT Cruiser has been held off, as has the decision to set up another PT Cruiser line. Engineers are busy preparing Graz for production, and top management wants to make sure that the Cruizer does not, like the Volkswagen New Beetle, sell like hotcakes for a while and then quickly lose steam. This insider also said he suspected the turbo version would not enter production until sales start to slack off - which would fit Chrysler's standard way of operating.

We also learned that there will be a new coupe concept car introduced by the end of the year.

We will have reports of our own experience testing the 2001 Dodge Grand Caravan, Stratus R/T, and Neon R/T within one week.

September 20

Chrysler is investing over $200 million in a new research and development facility in Canada. It will feature, among other things, additional safety testing.

According to "Neil," Chrysler has decided to build the GT Cruiser (turobcharged PT Cruiser) and PT Panel Truck at the old Jeep plant. The goal is to start production in Fall 2002, building model-year 2003 cars. Anticipated production is 50,000 GT Cruisers and 30,000 Panels per year. The Panel should have dual rear doors. A Dodge Hauler, basically an extended-wheelbase Cruiser, is being considered for 2005-06.

Neil also said that the CS would be sold in the $30-40,000 range, with a 3.7 liter V6 engine at most. It appears to be an Outback/X5/etc-style vehicle. It would go on sale as a 2003 model with a more-expensive, V8 powered Mercedes sibling.

The Michigan State Police conducted their annual squad car tests using Chrysler's track in Chelsea and the Grattan Raceway. We will provide the results of the tests when they are made available. We do not know which cars Chrysler submitted.

September 18

Ford has decided not to purchase Daewoo, leaving General Motors as the lead buyer. Daimler-Benz had also wanted to buy Daewoo, a company started in part by General Motors.

September 12

Chrysler Group, which has had profits of atleast $1 billion per quarter, is expected to lose $500 million this quarter due to the costs associated with launching the 2001 minivans and cloud cars, while heavily discounting the 2000 model year minivans and opening a new plant in Toledo. Stuttgart's reaction has been swift and firm, with James D. Donlon moved from corporate controller to Chrysler Group controller, reviewing the $1.4 billion North American advertising and marketing budget, and ordering $2 billion in cuts to take place over the second half of fiscal 2000. Detroit News has blamed much of the problem on the dissolution of Chrysler's leadership team after the merger.

"Neil" has been posting about the new KJ model designed to replace the current Jeep Cherokee. The KJ styling looks like an Audi with Jeep cues, and it has an independent suspension, which Neil says works fine off-road. The current 4.0 straight six appears to be marked for elimination. While it provides immense torque, the old AMC engine is fairly uneconomical and probably more expensive to build than a new engine would be. (Especially since we understand Chrysler has been working on a brand new truck six). - see our news forum for details.

September 11

Firestone parent Bridgestone has essentially blamed Ford for tire separation issues on the Ford Explorer, noting that this problem has not affected other vehicles to the same degree.

Chrysler is running an ad blitz for the redesigned minivans and Sebring/Stratus (thanks, Neil Gordon), despite earlier reports from industry observers that Chrysler was not going to advertise their new "cloud cars."

September 6

Ford and Firestone are hurling blame at each other, but one thing has become clear in the recent inquiries - both companies have known about potential problem for some time, which is one reason why Ford recalled Firestone-clad Explorers in Venezuala before telling Americans the vehicles were perfectly safe.

Inside Automotive suggested that a Daimler-Benz employee may take over as COO of Mitsubishi Motors, as Daimler continues to acquire portions of Hyundai and Mitsubishi. Since Mitsubishi is a partner with Volvo Truck, the owners of Volvo Truck may just be wondering why they sold the car business to Ford and kept the trucks. (Daimler, which originally was to own 34 percent of Mitsubishi Motors, will now own 40 percent, with four seats on the board of directors).

Motor Trend has reviewed the 2001 minivans, and Car and Driver has reviewed the 2001 Neon R/T.

September 1

We can now report details on the 2001 models!

August 31

Advocacy group Friends of the Earth calculated that the US Government lost $10.2 billion in gas guzzler taxes in 1999 alone because light trucks are not subject to the tax. Automakers and customers are increasingly turning from luxury cars to luxury trucks, partly to avoid gas mileage restrictions and the gas guzzler tax. The law which requires substantially higher gas mileage from cars was written long before SUVs were popularly used as commuter cars, and had a double standard because it was thought that only businesses used light trucks. (Though the rationale that businesses should get a break when individuals do not is beyond this forum).

August 30

http://www.motoristmail.com/index_inglese.html is a web site which is dedicated to sending messages to people by their license plate number. In other words, if you see someone on the road and want to write to them, you can write down their plate number and use motoristmail to send it. It only works if people are registered with the service, and the owner tells me that registratnts' e-mail addresses are confidential and not sold.

August 29

Inside Automotive noted that Chrysler is not promoting the much-improved Dodge Stratus Coupe / Chrysler Sebring Coupe in an effort to save money. Indeed, we would guess that cost savings are also the reason for the killing off of the name "Dodge Avenger" just as the former-Avenger gained enough of an engine to deserve the name. This appears to be part of the $2 billion in cutbacks at Chrysler designed to make Mercedes look better.

Mercedes is sinking $500 million into expanding their US factory, which makes their SUV. The next generation Mercedes "M class" SUV will reportedly have unit-body construction for a more car-like ride and handling, and will share many components with the next-generation Jeep Cherokee (due soon).

August 28

The Packard name is up for sale on e-Bay.

The new Voyager/Caravan are in production. Chrysler has announced that its new flexible manufacturing system has already saved $500 million, while drastically reducing model changeover time. The Windsor plant, which has been Chrysler's quality leader in minivans, is already at full capacity. Quality benchmarks were also met well ahead of schedule.

Coming September 1: reports on all 2001 models!

August 26

General Motors has taken notice of the Prowler, and will soon come out with a retro roadster of its own. The Chevrolet SSR is a rear wheel drive V-8 powered car with a pickup bed, based on the next-generation S-10/Sonoma. It will be sold in 2002.

August 25

Chrysler CFO Tom Capo, known for his scruples, has left the company because he does not like the current direction. He was replaced by a German officer. (Thanks, Torshon Ford)

DC also just announced its Five Star Market Center, a place for dealers to pool their resources and save on services such as telecommunications, fuel, and office supplies.

Chrysler is considering building PT Cruisers in Toledo, but they are concerned about whether there is enough demand to support it, according to recent reports. If they don't know, there are problems in Auburn Hills.

August 23

Carl Icahn has made a bid to buy 15 percent of General Motors stock - but not the entire company, as Kirk Kerkorian attempted with Chrysler (a bid that eventually sent insecure CEO to sell the company to Daimler-Benz for the price of, um, well, nothing, since it was supposedly a merger). This will, according to analysts, most likely spark a cost-cutting binge, whose effects are fairly predictable given GM history: an even greater loss of market share and profitability.

August 22

Lynn Townsend, who was president and CEO of Chrysler from 1961 to 1975, died last week. (August 17). The company nearly entered bankruptcy during his tenure (which does not make him unusual).

August 18

According to Inside Automotive, Daimler's 34 percent share of Mitsubishi is enough to veto the board of director's decisions.

Chrysler will debut its two-tone (black and silver) "Woodward Edition" Prowler this Saturday at the "Chrysler PT Dream Cruise." This is the start of an annual PT Cruiser owner event, and is expected to draw at least 300 PT owners and enthusiasts on August 18. It is part of the Woodward Dream Cruise, an annual auto event that draws over a million visitors.

Cadillac and Ford will both be bringing out new high-end two-seater roadsters - the Evoq and Thunderbird. The Thunderbird will be based on the Lincoln LS, and the Cadillac Evoq roadster on the Corvette.

With regard to the political note that was here - oops!

August 17

Sorry for the lack of news. On the lighter side, we do have a summary of upcoming models and we are gathering a report on the 2001 models which we will release on September 1. This will have details on the new minivans as well as the 2001 Neon models, changes to the Dakota and Durango, etc.

August 10

Curtis Redgap read in the Orlando Sentinal that Ray Everenham's team is coming along well, but Dodge may not call the NASCAR models "Intrepid R/T." The silhouette of the racing Intrepids looks like the racing Taurus ("Really/Taurus") because the actual Intrepid's line would make it impossible for Chrysler to change the engine. No NASCAR racers are actually stock production cars at this time.

Inside Automotive asks several pertinent questions about the Firestone tire recall, including: "Being as 80% of the Firestone complaints are coming from people driving Ford Explorers, what is the comparative failure rate of other tire makes on Explorers against the Firestone failure rates?"

August 9

Firestone is recalling the tires which Ford just a few days ago claimed to be perfectly safe. They have reportedly caused many accidents and some deaths. Though mainly used on Ford SUVs, they were also used on the Jeep Grand Cherokee and one GM truck.

Chrysler is idling the Neon plant for a few days due to slow sales. Opinion: now is the time for some sheet metal changes and that 150 hp engine supposedly ready for production.

August 8

Ford will be creating a new Wrangler-type vehicle based on the Ranger for sale in 2002.

Sears has stopped selling the Firestone tires linked with an increasing number of accidents (see prior article), which Ford, a major Firestone customer, claims to be safe.

August 6

If you live in Northern or Central New Jersey, you can sell your classic Mopar or at least have it reviewed at Allpar. Our Webmaster is seeking a new (used) Mopar, at a very reasonable price point. We will consider V-8 or turbo four powered vehicles, maybe a V6 if it's something really cool. If we don't buy it,at least we'll review it for you.

August 4

GM, angered by the implication of Ford's recent announcement that Ford is the environmental leader, held a press conference to say that its fleet was currently more fuel efficient than Ford's, and that they would continue to beat Ford's efficiency. This is a race we can all win :) GM will introduce a hybrid electric SUV in 2004 as part of their efforts. Ed Wallace reminded us that GM was the first American company with a catalytic converter [though Ed seems to have forgotten that Chrysler was the first to control engines via computer - he gives that honor to GM as well]. The current average fuel economy is about 18 mpg according to Ed Wallace, 20.9 according to the EPA. Not very good, especially when you consider that the heavier duty trucks are not included - yes, the EPA thinks that when a truck gets over a certain capacity, it shouldn't be counted! Nothing like providing an incentive for lower economy...

August 3

We now have a page on upcoming new and redesigned Chrysler, Dodge, and Jeep vehicles.

This man can speak for himself:

I hope you'll take a second and read about a great new team with an awesome history that is being put together for next season. We need feedback from people and hope you might add this to your sight and a link to our page. Check out the history behind the team at: http://www.pacificcoast.net/~wpc/savage.htm and the link to a poll that we are doing for a street/racer Stratus at ASOG. This is one time where the enthusiasts and Mopar fans can voice their opinion and help us get this thing done. I read the responses on the Stratus R/T, and I think we can make a version that will live up to people's expectations. Thank you! - Gary Savage

August 2

Chrysler and GM sales have fallen while Ford and the market have stayed steady. Chrysler sales dropped over 12 percent, while Honda picked up a large share of Chrysler's minivan losses with its Odyssey.

Ralph Nader wrote an article pointing out that Chrysler, with over $9 billion in cash reserves and high profits, demanded that the city of Toledo subsidize the project with local tax dollars and a total property tax exemption. In its desire to please Chrysler, the city (according to Mr. Nader) violated laws and failed to provide citizens with prior notice of meetings. The city will be clearing (read: buying and demolishing) property, including 83 homes, and paying for site preparation. The city is also accepting Chrysler's no-doubt sizable environmental liability risks. In return, the city has no commitment from Chrysler on how long the plant will operate, or, as far as we know, how many people it will be employ. The city is using eminent domain as a threat - some may remember how well eminent domain worked in Hamtrammack, when Dodge Main and a thriving neighborhood were cleared for a GM plant which, incidentally, never delivered the promised number of jobs. Some of the space being cleared is to be used for landscaping, according to Mr. Nader, and is not really needed by Chrysler. [We apologize for not having the URL of this article.]

Rumor. Neil wrote that Chrysler Product Development VP Tom Gale is trying to get Plymouth reinstated, at first as a trim level on the upcoming Dodge Charger, with limited paint schemes linked back to the old hi-po Plymouths of the 1960s and 70s. The Plymouth option would only be for the United States, and a decision would be finalized in Fall 2002. He also mentioned that the Chrysler Chronos was on for 2004.

More rumor. Automotive News wrote that the Neon may be be cancelled in 2004.

August 1

Safety groups have asked Ford to recall Ford Explorers made since 1991, because a number of tires have had their tread separate from the belt. (This affects Firestone tires). NHTSA received over 90 reports of tire separation, involving 30 accidents and four deaths. Ford, while saying they are extremely satisfied with their safety record [they are, after all, positioning themselves as the environment-and-safety company while making ever-larger, more-inefficient vehicles], did offer free tire replacvements to customers in Venezuala after a media outcry. Tires affected are the Firestone ATX, ATX II, and Wilderness.

July 31

TFord wrote that DCX has acquired all of Detroit Diesel and Western Star trucks. Detroit Diesel made advanced small diesel engines for Chrysler products outside North America (and for a variety of commercial vehicles). This furthers DCX's strategy of becoming a major player in the commercial truck industry.

July 28

The nose and tail-lights on the 300M have been modified for 2001. The new models are in production at Bramalea.

Our news board collected a rumor about a 2.4 turbo engine starting production in October for the Sebring - we suspect that would be for sale within Mexico, since the US model's engine choices are set.

July 27

Chrysler's market share is continuing to fall, according to industry analysts, partly due to increased minivan competition. However, within one year, nearly a third of Chrysler's products will have been newly redesigned. The Honda Odyssey is still a major threat, despite a future Voyager-based SUV.

Most articles about DCX earnings have pointed the finger at Chrysler Group. We would argue that Chrysler Group still provides over half of DCX's earnings, though they are only a small portion of the DaimlerChrysler conglomerate. We think it's Mercedes that weakens earnings, since Chrysler is pulling more than its own weight.

The 2001 Chrysler minivans are now in production.

Accusing Chrysler Group of hurting its earnings and stock price, DCX management reportedly asked for $2 billion in cuts at Chrysler, and $750 million in cuts throughout the rest of DaimlerChrysler. Chrysler currently is responsible for over half of DCX's profits. However, given the lack of investment in Chrysler facilities and engineering, and the move to using Mitsubishi for low-end cars, we do not expect this situation to continue. InsideAutomotive has already told the world to start preparing Chrysler Group's funeral, despite the stunning success of the PT Cruiser. (We suspect that, if Bob Lutz were still around, Chrysler would have already laid on another assembly line for it).

GM is pushing the Chevrolet Impala as a police car. The large front wheel drive sedan, which features a fast engine and performance transmission, was designed for police work, according to GM reps. It would compete with the $23,000 Ford V8 Crown Victoria, which has been criticized for its handling and braking. The Impala retails for about $22,000. Fleet prices are usually less, and police options must be considered, for a direct price comparison. One advantage of the Impala is an extra five miles per gallon, due most likely to its 500 lb lighter weight and V-6 engine. The top speed is 16 mph less than the Crown Victoria, but that is probably not a major issue for most departments - rear wheel drive is.

DCX is hoping to see some movement of its Grand Cherokee's squad package, and is considering a police Intrepid for 2001.

July 26

Government crash tests of the PT Cruiser showed a good side impact score for both driver (4 stars) and passenger (5 stars), but a moerate showing for frontal crashes for the driver (2 stars) though the passenger came out well (4 stars). Chrysler is expected to make minor changes to improve the two star score.

July 24

Update: the next-generation LH ("LX") will most likely have Mercedes' ZF five-speed automatic transmission, which (a) is designed for rear wheel drive, (b) has lower parasitic losses than Chryler's automatics, and (c) has five speeds!

Chrysler's head of manufacturing said that, in the first month of production, the PT Cruiser has the lowest warranty rate than any new vehicle in Chrysler history (indicating high initial quality). The company is reportedly considering adding PT production to the Belvedere Neon plant - the main obstacle is the size of the paint plant, which cannot handle the Cruiser's height. Some at Chrysler may also be concerned about whether PT sales are sustainable. Austrian production does not begin until 2001.

An engineer at one plant reports that there is talk about the 2004 LX series (which replaces the LH). They will be rear wheel drive, partly for the prestige, but also to save money. Parts are likely to be shared wtih Mercedes C and E class models, including suspension parts, differentials, and transmissions (!). The 353 Hemi V8 is still planned (5.8 liters, but widely reported as 5.7 liters). A right hand drive version is not especially likely though it is being considered.

July 13-23

We will be unable to update this section until July 24. We apologize for the inconvenience.

July 12

Andrew Renth read that Hyundai is eager to sell their world car. They envisage a Chrysler-branded, Hyundai-designed, Mercedes-engined car in Mexico, where Hyundai does not yet sell under their own name. We're not enthusiastic about having Hyundais sold as Chryslers, though we must admit that the only major problem with Hyundais, in terms of the driver experience, is the engine...

July 11

Both Rich Hutchinson and Andrew Renth have read that major changes are in store for the LH series. Many have already seen rumors that they will gain V8 engines and rear wheel drive, to compete better with offerings from BMW, Lexus, etc. Transmissions, differentials, axles, and other parts may be borrowed from Mercedes bins. The LHS may be eliminated, or turned into a trim option on the Concorde, while the Charger appears to still be on course. Rear wheel drive is often seen as more appropriate for upper-level cars, but not as good on snow. Hopefully, Chrysler will be able to borrow Mercedes active suspension technologies as well as transmissions.

European PT Cruisers will, as expected, use Mercedes diesels.

Thanks to Neil for posting these news stories.

DC is planning to cut administrative costs in Stuttgart, but will have a larger hatchet for Auburn Hills, where they plan to save $2 billion. Opinion: forget about shorter wait times on the 800 number.

Viper-racing Team ORECA won the fourth round of the American LeMans series in Germany. The next race is in California on July 23.

While laying off employees, DCX is reportedly planning on layout out big bucks to rent space at the Chrysler Building.

The Bramalea plant, which is currently changing models, experienced an explosion and fire in the paint shop on Sunday. Six people were injured in the Ontario plant.

July 9

Hot Rod reported in their July 2000 issue that the LA series of V-8 engines has finally reached its end. As planned, the 4.7 "Next Generation" series of V8s will replace the 318 and 360 within two years.

Two new 4.7 variants, one producing about 260 hp and 290 lb-ft of torque according to present reports, will be used to replace the 360. The higher powered (260 hp) one will go into R/T models.

Both a Next Generation engine and a new 5.7 Hemi are expected to be used in the next generation of LH cars, which will be more upscale than the present models. The 2003 or 2004 Intrepid, 300N, and Charger will reportedly have rear wheel drive and a choice of V8 engines.

July 7

ptcruizer.com has started their seven day PT Cruiser test.

We've heard that the rumor of PT Cruisers being built at St. Louis is probably wishful thinking.

July 6

Janusz Mielnik wrote "Car and Driver just had their 40K mile test completed and the car finished flawlessly! No problems, great performance. C&D rates the 300M their top choice domestic performance sedan. Especially considering the modest price tag."

Want free e-mail and Web space with a cool name? Click here for ptcruizer.net or click here for allpar.net. Your e-mail will be (for example) joe@ptcruizer.net and your Web URL will be (for example) joe.ptcruizer.net.

DC's allocation scheme for PT Cruisers has reportedly been altered, so that dealers with the largest number of deposits will get the largest number of Cruisers.

The PT Cruiser is a hit in Europe, according to Detroit News. Starting at $17,000 in Germany, it is reasonably priced. Only 50,000 Cruisers will reportedly be produced each year in Europe. However, the 2.2 liter Mercedes diesel is not expected to be used until 2002.

DC needs production capacity for PT Cruisers and the next-generation Rams. English PM Tony Blair desparately needs someone to take over Ford's Dagenham, UK plant. Hint, hint.

Chrysler Group sales fell 9.8 percent, largely due to loss of minivan sales to Honda and Toyota. GM sales fell 5.8 percent and Ford sales fell 3.1 percent in the same period (June year-to-year). Car sales at Chrysler also fell, we suspect due to the loss of Plymouth and the age of the cloud cars and Sebring/Avenger, both of which are being replaced. Hyundai and Mitsubishi posted strong gains, due largely to Elantra, Galant, and Montero sales.

June 30

Fiat may buy Nissan Diesel - Renault already got Nissan Auto.

Ford is almost certainly going to buy Daewoo.

NHTSA is being criticized for paying over $20,000 above list for PT Cruisers (for crash testing).

Mazda denied reports that they would close dealerships, though it has shut down about 100 since 1997. Other automakers are also closing dealerships - the sales are usually taken up by other dealers.

June 29

Automobile magazine pegs the Neon SRT at a more-reasonable 208 hp (rather than 225). We still think 180 sounds right for a production model, if Chrysler makes a Neon SRT, which we're not too sure about.

June 28

(Thanks to Matt Gordon for sending this:) Dodge and Jeep garnered half the awards in Four Wheeler's "Ten Best 4x4 Values" list. These include:


No other automaker garnered more than two of these top honors.

Ford will be the sole company to negotiate for Daewoo, according to Bloomberg. DCX had set up a bid with Hyundai. Daewoo is several billion dollars in debt, but is the last Korean automaker seen as up for grabs. Prepared for the loss of Daewoo to Ford or GM, DCX Chair Schrempp has already announced that DCX is only bidding to see what parts of Daewoo might look interesting, and only purchased part of Hyundai to get part of Hyundai.

June 26

DCX purchased 10 percent of Hyundai (for about one half billion dollars) in preparation for a joint bid for Daewoo. GM and Fiat have also combined forces to bid for Daewoo. Ford is making a play for the failing automaker, as well. Daewoo has modern, efficient plants not only in Korea, but also in Eastern Europe.

The DCX partnership with Hyundai will also include the creation of a "world car" with Hyundai, Mitsubishi, and DCX, and a 50/50 joint venture for commercial vehicles. The partnership also calls for technology sharing, which may help Hyundai cars to increase their rather poor gas mileage, while giving Chrysler access to recent Mitsubishi efficiency technologies.

According the Detroit News, "the Suburban leaves the Expedition in the dust."

President Clinton's initiatives to start rating SUVs on rollover injury potential, limit the time spent by truckers on the road, and increase fuel efficiency are reportedly being thwarted by the GOP. The trucker time initiative is particularly interesting, since it was actually requested by the same Congress that is now preventing its passage.

June 23

GM plans to eliminate the Metro and Prizm (it does not make either one), and to move from car to truck production where possible. Cavalier/Sunfire production will be cut - GM currently loses about $2,000 per car on these models. (Reportedly, DCX makes money on each Neon).

June 22

DCX promoted James Holden to CEO of Chrysler Group, which may or may not be a moderately meaningless change of name. Top designer John Herlitz has retired and will be replaced by Trevor Creed, formerly VP of design for large cars, small cars, and minivans. Finally, Kathleen Oswald moved into the new position of Chief Administrative Officer.

Ford's next-generation Mustang (due around 2003) and Thunderbird (around 2002) will be on the Lincoln LS platform, which is also used by Jaguar. The Thunderbird will reportedly be a two-seater.

June 21

From JeepNews: Fours Jeep Club has a list of changes to the 2001 Wrangler that comes from one of their readers who just placed an order for the 2001 TJ. Changes include a new four-ply quiet soft top, new full center and mini consoles, a new subwoofer, new and improved instrument cluster, and new colors. (Medium Fern Green and Desert Sand were dropped, Sienna, Amber, and Blue were added).

The Jeep Cherokee has yet again postponed death, this time going beyond its original life extension of 2001. It will now reportedly be produced through June 2002, according to Detroit News. Oddly, Chrysler has the capability to build a third vehicle at that plant, but will instead lay off 200 people. (Oddly because the PT Cruiser could conceivably be built there as well).

AI-Online has an interesting article on on-road distractions such as TVs, video games, and computers.

Hey, Chrysler! Another new prospect for building PT Cruisers - GM appears to be set to close its Ingersoll, Ontario plant.

June 20

Dan Trickel wrote:

I contacted Paxton (Supercharger manufacturer) and inquired about the rumor of a supercharger for the PTC... Paxton has just released a supercharger for the Prowler. The supercharger for the PTC is in the approval stage to be scheduled for R&D;. There is no anticipated launch date as of yet. I also asked about what needed to be changed to accomodate the supercharger. He told me that the existing tranny could and would handle the extra HP without extra modifications. The kit would include the supercharger, extra on board computer to retard the timing when positive boost is present and two extra fuel jets (before the supercharger) to add the extra fuel under full boost. The fuel economy for around town driving wouldn't change and you would not notice any difference in the engine performance. BUT under full acceleration you would notice a huge increase in perforamance. He said that all the designs a re fully tested on actual cars before the kit is released. The expected cost is aroune $5,000 to $6,000 installed. I will keep you updated when I get more information.

June 15

The new Wrangler and Cherokee are due in late 2001. Expect an all-new engine. Cherokee may be replaced by a completely different vehicle, possibly *not* based on the Wrangler. Many rumors are floating around regarding the new "Varsity" and whether it will be the new Cherokee or will be made in addition to the new Cherokee. We don't have the answers.

DCX will end the full size Ram Van and Wagon after the 2002 model year (in English, anywhere from late 2000 to 2002 - most likely in late 2001). Chrysler once ruled the full size van market but did not invest in full-scale redesigns once the minivan was created in the 1980s, while Ford and GM both came out with more competitive products.

The Pillette Assembly plant, in Windsor, will build an all-new Dodge starting in the 2003 model year. The plant currently makes the Ram Van and Wagon. The size of the facility will be tripled and will include a state of the art paint shop which, like the rest of the redesigned plant, supports flexible manufacturing. No details were provided on what the new vehicle would be, though a full size SUV is likely. The Pillette plant opened in 1975, and has produced only Ram Vans and Wagons.

(Thanks, Neil:) DaimlerChrysler's New Castle Machining and Forge plant in Indiana will host an open house from 11am-3pm on Sunday for 'everybody.' There will be plant tours, refreshments, prizes, display booths, music and cars of all sorts. Classic cars built before 1975 will be on display as well as the Chrysler PT Cruiser, Woodward-edition Prowler and concpt vehicles such as the =DODGE VENOM= and X-games minivan.

June 14

(revised) An all-new six cylinder engine will be used in the upcoming Varsity, and possibly also in a refreshed Grand Cherokee, replacing the loud but torquey, vintage AMC 4.0 liter straight-six.

June 13

Detroit News noted that overall gas mileage has fallen for new vehicles old in the US from 25.4 mpg in 1990 to 24.5 mpg in 1999, due to the increase in truck sales. Chrysler went from a 49/51 car/truck mix to 30/70. Ford similarly went from 57/43 to 39/61, meaning 39 percent of new Fords are trucks. General Motors is most balanced, with a 50/50 sales ratio. Most foreign vehicles sold are cars rather than trucks. Average car economy has been frozen at 27.5 mpg since 1990 (it was to have increased annually). Annual truck economy has moved from 20 mpg to 20.6 mpg, which is still fairly pathetic.

Demand for larger trucks seems to be slowing, which could hurt Chrysler's current fuel-inefficient fleet. Chrysler does not make a small, efficient truck, unless you count the PT Cruiser (as the government does), and their production capability for the Cruiser is very limited and unlikely to grow. The new 4.7 liter engine helps - it is much more efficient than the 318, 360, or Jeep 4.0 - but with no small pickup, and no small SUV based on the small pickup (e.g. Blazer), Chrysler may be at a disadvantage as DCX investors howl for higher profits which can only come from the Chrysler group. (Politically speaking, that is. It is unlikely that DCX's other operations would come under the same pressure, though they are not pulling their weight).

Another problem for Detroit (and DCX) is the increased presence of Japanese competition in the truck and SUV market. Toyota seems poised to do to Chrysler, GM, and Ford in pickups what it did to them in cars and is doing in Jeep-type vehicles. Increasingly, new sales are going to Japanese automakers with the Odyssey, Sienna, Land Cruiser, 4Runner, Xterra, etc.

Lest it be said we presented gloomy news, Chrysler does have the technology and ability to survive in a car-only market, if it chooses to invest its resources there.

Detroit News ran an article on calls for higher profits at DCX, which apparently are being spurred by fears that Chrysler profitability will decline before it gets better. Chrysler contributes about half of DCX's profits though the Chrysler Group is small in size compared with DCX as a whole. Hence the extreme cost-cutting moves by James Holden - he wants $2 billion trimmed from Chrysler Group's budget within the next six months. Forget about investing in the future - we're living trading day to trading day now.

Pete and Derek wrote:

Attention all FWD Mopar enthusiasts in the Ottawa, Ontario region, the National Capital of Canada!

There will be a gathering of Shelby Dodge enthusiasts at the parking lot of the Orleans Shopping Center on Wednesday June 21st, 2000. Any FWD Chrysler vehicle is welcome be it a Omni, Neon, Daytona, K-Car or something in between. Everyone is welcome. Depending on the turnout and interest, the inception of a local club or regional SDAC chapter will be discussed. Wednesdays are a regular cruise night at Orleans for all makes, so there will be lots of other cars to see.

We'll be using the "upper" parking lot across from the main area, this will guarantee we'll all be able to park together. Pete will have his black '97 Maxi RamVan (hard to miss) and Derek will be present in his '88 Shelby Z (also hard to miss). One of us will be there from 7-7:30pm on.

June 12

We understand the Chrysler 300M Convertible is a "go" for 2002.

As stated yesterday, Neon SRT seems to be "go" for 2002 with a 225 hp supercharged 2.0 engine. Don't be surprised if actual final-product horsepower ratings are lower.

DCX will use landfill-produced methane, a greenhouse gas, at two boilers in its St. Louis facility to provide power. This helps the environment both by avoiding the unnecessary use of oil or natural gas, and by burning the methane.

James Holden protested Federal plans to rate SUV rollover risk, claiming that any numbers would be misleading. This is not surprising, given that Chrysler mainly sells SUVs and minivans.

Ford, having angered dealers with (in effect) car-price hikes for dealers which do not meet their new Blue Oval standards, has now struck again with revised "standard hours" for a number of repairs. Mechanics are being asked, for example, to replace a transmission in five hours rather than seven on the Taurus, or to replace a Cougar engine in six hours rather than ten. Mechanics say this will cause shoddy work and high turnover of dealer mechanics. Ford pays dealers between $60 and $70 per hour for the repairs - dealers then pay mechanics out of that money.

Nearly half of dealer profits come from repairs, so while this greatly benefits Ford's profits, it hurts dealers in the wallet. Owners of dealerships are likely to pass along the pain to their mechanics.

June 11

AutoWeek reported that the Neon SRT really is a go for 2002, with a modified suspension and 2.0 SOHC supercharged engine with 225 hp and 183 lb-ft of torque. If this is true, it will not only overpower (easily) the top of the line Focus and Civic, but should show the Acura Integra Type R a few tricks. Given the dominance of Honda and BMW at the stoplight races and in the small car races, we think the Neon SRT is an excellent idea - and a great way to get our youth into Mopars. (It won't hurt the Neon's image, either. The current Neon seems to have inherited the past model's reputation for quality, or lack thereof, without gaining anything from the past model's performance).

We are starting an EEK! discussion forum - click here to visit the preview version.

June 8

DC will be able to build both the 2000 and 2001 minivan at the same time, despite major differences in their design, saving about half a billion dollars this year.

Chrysler's market share (US) dropped to 35.5 percent so far this year, from 40.7 percent at the same time last year, as the Odyssey, Sienna, and Windstar's latest incarnations have become more attractive.

Based on police crash data collected over three years, DCX said that Chrysler minivan occupants are 16 percent less likely to have serious or fatal injuries than occupants of Windstars, and 43 percent less likely than occupants of Odysseys. Ford's Windstar has beaten Chrysler minivans in government crash tests. (A new generation is due late this summer).

June 6

Tuve Johannesson, current president of Volvo's car operations, has been asked to step down by new owner Ford.

The Nissan Quest / Mercury Villager will be discontinued with 2002 models, two years earlier than scheduled. It will be replaced with a Renault model (currently being designed) which will be sold as a Nissan.

June 5

Some PT Cruisers may have been built with the wrong valve cover, resulting in heavy oil usage. See PTcruizer.com for details.

Ford is closing its Dagenham, England plant. Good opportunity for DCX to sneak in another PT Cruiser plant, if their top managers were on the ball. (No, we don't think they are).

June 2

WhatCar! claims that the PT Cruiser will have a 2.4 turbo at some point, and wrote that the Euro versions will get a Mercedes 2.2 liter diesel and Rover/Chrysler 1.6 gas engine option (in addition to the 2.4 DOHC).

Grand Cherokees made from 1997-1999 (model years) are being recalled because the airbag control module may corrode after contact with salt water. Five "unscheduled deployments" occured. Owners will be notified.

Hyundai wants to have a joint venture with DCX to produce trucks and buses in Korea. This would likely have little to do wtih Chrysler Group. Hyundai also will be making a "world car" with MMC and DCX with a 1.0 to 1.5 liter engine, based on a current Hyundai model, according to Hyundai reps.

GM and Chrysler sales dropped last month, while Ford and foreign auto sales rose.

June 1

Chrysler has started rebates on the Durango, and has increased rebates on other models. If you will excuse the opinion, we believe rebates are a bad idea - they give a short-term sales boost, but cheapen the brand image. Lowering the price is, long term, more sensible. Exception: model year close-outs, but leave that to the dealers! (GM is likely to follow with its own rebates).

May 28

Sunday June 11 is the Northwest Mopar Championship at Firebird Raceway near Boise, Idaho. This event will have lots of A body action, including a show-n-shine, A body racing classes, etc.

May 26

(Courtesy Pat Redmond) - Anyone in the Toronto area, the Mopar Performance Group, in conjunction with Daimler/Chrysler Canada, Present the 14th annual 'SPRING FLING' car show on the grounds of the BRAMALEA LH ASSEMBLY PLANT. Over 250 cars are expected. SUNDAY, MAY 28, 2000 9 A.M. TILL ?? PRIZES, GOODY BAGS,TROPHIES AND AWARDS. BRAMALEA LH PLANT WILLIAMS PARKWAY AND AIRPORT ROAD AREA, BRAMPTON

May 25

Chrysler's EPIC electric-powered minivan won two categories in the Tour de Sol - the minivan category and Customer Acceptability. The rally is five days long. About 200 EPICs are currently being used around the country.

May 24

New books! You can pre-order either of these, though they are not yet in print.

Walter P. Chrysler: The Life and Times of an Automotive Genius - a new and very thorough history of Chrysler, the man, and Chrysler Corporation. It's gotten good reviews so far.

Taken for a Ride - the inside story of Chrysler's willing takeover by Mercedes-Benz, led by a man who seemed terrified of failure as Chrysler CEO.

May 23

A new biography of Walter P. Chrysler, with extensive coverage of Chrysler Corporation, will be printed in June. We will have a longer description soon.

Gary Howell heard that PT Cruisers are being pulled from the allocations of dealers who overcharge for the hot vehicle.

A new free service, MotoristMail, lets people contact other drivers (if they are registered with the service) by typing in their license plate number.

May 22

Democrats lost their nerve and will not fight a bill which forbids the government from changing, or even examining the possibility of changing, fuel economy standards, which have been frozen at 27.5 mpg for cars and 20.5 mpg for trucks for years. Acura, Lexus, and other automakers, including GM and Ford, take advantage of the dual standard by producing low-mileage luxury SUVs. The dual standard was originally intended to protect farmers and industry, but was written long before SUVs were used as commuter vehicles by nearly half the population.

State Farm research shows clearly that booster seats save lives and prevent injuries for children who weigh under 80 pounds. However, more than 80 percent of 4 to 8 year olds in car crashes in their study were restrained by adult-size safety belts, often resulting in serious injuries.

Ford will be buying diesel engines from Detroit Diesel for a European car. Detroit Diesel supplies engines to Chrysler for European models, though there are rumors that Chrysler will switch to Mercedes diesels.

Detroit News is running a series on the DCX takeover. Click here to read it.

May 17

In a case of unabashed commercialism, Fox will air four hour-long Ford ads, thinly disguised as a TV series. The ads will go under the name "No Boundaries," the same as Ford's new slogan. Unlike shows such as "Viper" or "Knight Rider," this one is produced by the company itself - Ford is spending $7 million to produce and advertise it. The goal is to link Ford extra-large vehicles with "fun and adventure" in a manner which convinces viewers that they are not watching an infomercial (info from Detroit News).

May 16

Neil reported: PT Cruiser prices rise on July 24, from $160 to $1,000 depending on the model - but new standard equipment will be phased in at the same time. DCX said that customers with current orders will pay the current price, but get the new items for free. This includes heated leather seats with lumbar control on the limited touring model.

Neil also said that the Windsor, Ontario plant ran ten test runs of the 2001 minivans to debug the process and get worker input. Following a worker-led quality initiative some time ago, the Windsor plant has produced clearly higher-quality minivans than the corresponding America plant, according to some sources. Actual production will start on July 24.

May 15

DCX seems to be out of the running for Daewoo, leaving GM and Ford to fight over the company.

In the UK, Rover prices will be cut by over ten percent, rolling back BMW's premium-price strategy. Meanwhile, BMW is getting ready to produce new Austin Minis in their UK plant.

May 12

The IHRA Pro Modified car series will see two new Mopars in August. From a Swedish group, the Chrysler 300 C-57 and Superbird will hit the tracks with customized Hemi engines.

Brian Swan heard second-hand that the Power Wagon would be built with a real crew cab and Cummins diesel in 2002. With the PT Cruiser helping Chrysler's CAFE numbers, this is quite possible.

The Plymouth Owners Club meets in South Dakota, June 28 through July 1.

Recently, Chrysler's SVP of powertrain engineering left to take a position at New Venture Gear, a GM/DC joint venture. He was just replaced by a former GM exec, Thomas LaSorda, who was a GM VP for quality who pioneered the company's lean manufacturing systems.

May 9

The Rover brand was saved today, as Phoenix Group bought the money-losing car brand from BMW for ten pounds. BMW, on the other hand, is giving Phoenix 500 million pounds, or nearly $800 million, to cover the cost of restructuring and cutbacks. Rover will continue to make the Rover 75 sedan and wagon, as well as the smaller 25 and 45. The planned R30, however, is probably not going to be produced. The new Mini's future is assured, at least if anyone buys it.

Rover had been partly owned by Honda when BMW bought the company, and has even made a Rover-branded Honda called the "Sterling." BMW's earlier decision to sell Rover to Alchemy Partners would have resulted in many more lost jobs, as Alchemy wanted to reduce Rover to a niche maker, eliminating the Rover marque and only producing MGs.

The part of Rover that makes money, Land Rover, will be sold to Ford, which will no doubt double Land Rover quality to near-Jeep levels.

As the decline of Chrysler continues, President James Holden said he was willing to lose market share in order to avoid more incentives. He noted that Chrysler currently runs at 120 percent of straight-time capacity. (He did not mention the possibility of expanding production, which seems to be off limits since the takeover). He also said that building a small car is not in the cards, unless "we can leverage someone else" (e.g. re-brand an MMC or Hyundai).

Holden also said that the main opportunity with MMC is combining the distribution network, not at the dealer level, but at the parts and warehousing level. (Courtesy Automotive News)

GM's Epsilon platform will, according to Automotive News, be the basis of the Malibu, Grand Am, Alero, Saturn L, Saab 9-3, and Opel Vectra.

May 8

Some time ago, Chrysler Corporation seemed to have the world in its hand. The 300M was leading its conquest of the semi-luxury market, a new subcompact was in the works with an efficient 1.4 liter engine, factories were opening across the world, and the Neon and Jeep series seemed poised to open international doors for the long-isolated company.

What happened?

When Daimler bought a hat-in-hand Chrysler Corporation, the near-luxury market suddenly seemed near-death with the assignment of all Plymouths to Chrysler and the problem of having one Mercedes brand competing with another should Chrysler extend to C-class levels with more than one vehicle. Now, the bottom end is also being taken out: Hyundai has officially announced that it is forming an alliance with DCX to develop a small passenger car starting i