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Reported by DaveAdmin at (September 05 2008, 02 PM)

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Reported by DaveAdmin at (August 26 2008, 11 AM)

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Chrysler brings out new models through Russian distributor

The Jeep Liberty (sold outside the U.S. as the Cherokee) and Journey were introduced to the Russian buying public this week at the 2008 Moscow International Motor Show. Last year, Chrysler signed with Chrysler Russia SAO to be the general importer for the Chrysler, Jeep and Dodge brands. Russia is now one of Chrysler's top ten markets by volume; the Russian car market has grown dramatically in recent years, with annual sales of over 1.6 million vehicles.

Reported by DaveAdmin at (August 26 2008, 10 AM)

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Distraction a downside for Chrysler's uconnect?

In-car electronics are all the rage today. From Bluetooth cellular communications to factory-installed DVD and navigation systems, automakers have made it possible for us to stay connected and entertained when we’re on the road.

In June, Chrysler announced the next step: in-car Wi-Fi and Internet connectivity. When you opt for Chrysler’s uconnect system, you can add “uconnect web,” an aftermarket package to be marketed through Mopar. With uconnect web, your next Chrysler, Dodge or Jeep vehicle can be a wireless hotspot on wheels.

"We set out to connect customers to the things that matter most to them," said Deborah Meyer, Chrysler Vice President and Chief Marketing Officer LLC. "The role for 'uconnect' in the 2009 model year places the focus on the customer experience and how the features will make their life easier."

But has the trend toward greater connectivity gone too far? In an article published on Sunday, August 24, in the New York Times, Randall Stross, a professor of business at San Jose State University, details some potential problems with Chrysler’s rosy vision.

Even though traffic deaths per 100 million miles are at historic lows, public health groups and the insurance industry point out the gains made by reducing drunk driving and increased utilization of set belts have been negated by the increased use of cell phones will driving. Even the use of hands-free phones doesn’t seem to help; according to studies conducted in Canada and Australia the distraction is the conversation itself. How much worse will it be when drivers are using their laptops for e-mail or surfing the web?

For more on this issue, read Caution: Driver May Be Surfing the Web at the New York Times website.

Reported by Bill_Cawthon at (August 24 2008, 07 PM)

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Dodge continues to build commercial vehicle momentum

Just two years ago, Dodge re-entered the commercial vehicle market in earnest for the first time since the mid-1970s. The result has been considerable success despite a poor economy: in the first half of 2008, Dodge's slaes in the Class 3-5 segments rose 132%, with commercial sales in general growing to 20,177 units for the first half of 2008 (a 123% increase over 2007).

Dodge's total retail market share for Class 3-5 trucks is 21%. The Ram 3500 Chassis Cab has a 27% retail market share; Ram 4500 and 5500 grew to 16%, making Dodge the fourth largest maker of commercial vehicles. The trucks boast best in class fuel economy and low ownership costs, with brakes that last up to three times as long as comparable Ford trucks.

Dodge now offers a full line of Class 2-5 commercial vehicles from the Cargo Van (a modified Grand Caravan whose sales are likely to swing up now that interior window blocks are available) to the Class 5 Ram 5500.

In returning to the Class 3 segment, Dodge set the new commercial standard with the Ram 3500 Chassis Cab, which quickly achieved a 29% market share in less than one year, surpassing the historic leader Ford and leading the segment in four out of the last six months of 2007.

Last year, Dodge extended its reach into the Class 4 and 5 medium-duty markets with the Ram 4500 and 5500 Chassis Cabs, with fuel economy that is 14% better than comparable Ford models and 23% better than Chevy and GMC. Dodge continues its climb in the medium-duty segment and achieved a 16 percent share of the Class 4 and 5 retail market in less than one year.

In 2007, Dodge sold 33,500 commercial vehicles, including the Mercedes Sprinter. Through the first half of 2008, Dodge sold 20,177 commercial vehicles.

A new national dealer program, Fleet Elite, was set up to provide a world-class dealer experience to Fleet and Fleet Management Company (FMC) accounts and customers. Fleet Elite is a dealership certification program with specialized facilities, staffing, and processes. Target dealers are selected based on their volume of courtesy deliveries, “fleet-friendly” practices, and expertise with the Five-Star program.

Launched in 1999 and offering no-cost enrollment, Dodge BusinessLink is a full-service commercial program comprised of a select network of Dodge dealers who offer assistance including dedicated account managers and sales teams, next-bay service and technicians, extended hours, and free loaner vehicles. BusinessLink also includes Dodge’s “On The Job” program which offers discounts on upfits and direct cash incentives and savings on almost all Dodge commercial vehicles.

Reported by DaveAdmin at (August 22 2008, 09 AM)

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Chrysler makes vacation plans for 2009

Chrysler will require all of its employees to take the same two-week summer vacation again next year. In an e-mail, the company announced the mandatory 2009 summer break will be during the weeks of July 13 and 20.

In the e-mail, Nancy Rae, executive v-p for human resources, said, "With this early notification, the intent is for the majority of employees to take this time off to improve on the efficiencies achieved in 2008."

North American factories traditionally shut down for a week or two during model break, when assembly lines are switched over to production of the new model year’s vehicles, but 2008 was the first time that Chrysler required all employees, including salaried, to take their vacations during a specified time.

Chrysler spokeswoman Shawn Morgan said the mandatory vacations saved the company a little money, but said the primary benefit was improved efficiency. With all employees taking their summer breaks at the same time, projects did not get out of step because one team got ahead while the other was on leave.

Morgan said Chrysler has not yet decided if it will extend the mandatory vacation program beyond next year.

Reported by Bill_Cawthon at (August 22 2008, 07 AM)

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Chrysler to develop distinctive designs for each brand

Ralph Gilles, Chrysler’s new v-p of design, says the company will develop distinctive vehicles for each of its three brands. Speaking in an interview, Gilles also said he wants to improve productivity by having designers devote more time to executing their work and less on the creative process. Gilles will take over as design chief when Trevor Creed retires on August 31.

Reported by Bill_Cawthon at (August 22 2008, 07 AM)

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GM announces employee pricing for all

In an effort to trim bloated inventories, General Motors will offer employee pricing to all buyers on most of its 2008 lineup and some 2009 models. The top U.S. automaker is also expected to make an announcement about leasing certified used vehicles.

The employee-pricing offer starts tomorrow and runs through September 2, which coincides with GM's 100th anniversary. It applies to all in-stock MY 2008 vehicles, except medium-duty trucks. Eligible MY 2009 vehicles include the Chevy Cobalt and HHR, Pontiac Vibe and G5 and Cadillac CTS.

John McDonald, a GM spokesman, said GMAC won't offer leasing on nine new models during the employee-pricing program. Affected vehicles will include the popular six-cylinder Chevrolet Malibu sedan and the Buick Enclave SUV. The change will be effective tomorrow. He also said GM hadn't decided whether the leasing changes would become permanent.

Reported by Bill_Cawthon at (August 19 2008, 11 AM)

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Chrysler, Jeep improve in satisfaction survey

Chrysler and Jeep vehicles received higher marks in the latest University of Michigan American Customer Satisfaction Index. The survey, which polls consumers who have had their vehicles between six months and three years, also shows Dodge lost some ground.

All Chrysler brands scored below average on the Index’s 100-point scale. Average for all brands was 82 and Chrysler received the best score, coming in with an 80, an improvement of 1.3 percent that left it tied with Ford and Pontiac. Jeep, though its grade rose an identical 1.3 percent, came in last with a 76. Dodge’s results dropped 2.5 percent, to 78, leaving it next-to-last in the rankings.

"If I were Chrysler, I would certainly be concerned," said Professor Claes Fornell said, who headed the study. Fornell noted Chrysler has also done poorly in other recent quality surveys.

Lexus and BMW the chart with 87s. BMW improved 1.2 percent to pull even with the Japanese brand. Honda and Toyota both scored an 86. Buick and Cadillac, both of which dropped 1.2 percent, were the top American brands with 85s.

Among American brands, Saturn had the largest improvement, gaining 4.9 percent to an 85 and giving it a three-way tie with Buick and Cadillac. Mazda and Kia were the most-improved imports; both gained 2.6 percent, rising to identical 80s and came in tied with Chrysler.

Chevrolet was the biggest decliner in the survey, dropping 3.7 percent to 79. Lincoln-Mercury had the second-largest drop, 3.5 percent, but still came in above average with an 83.

Responding to the survey, spokesman Ed Saenz said Chrysler has been working to improve customer satisfaction since being acquired by Cerberus last year.

Reported by Bill_Cawthon at (August 19 2008, 11 AM)

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Trevor Creed era over at Chrysler

Trevor M. Creed, Chrysler’s 63-year-old Senior V-P of Design, is retiring at the end of this month. Creed came from Ford in 1985 as Director of Interior Design. In his tenure, he played what company CEO Bob Nardelli called a “key leadership role” in the development of the Chrysler 300C, PT Cruiser, Dodge Challenger, Ram, Viper and Plymouth Prowler.

"Trevor has led a distinguished automotive design career," said Nardelli. "We thank him for his contribution to the Company and wish him well in his retirement."

Creed will be succeeded on September 1 by Ralph V. Gilles, 38, currently Vice President of Jeep, Truck and Advance Interior Design and is responsible for the styling of the new Dodge Ram pickup. Gilles is also credited with the conception of the Chrysler 300 sedan’s distinctive look. Gilles joined Chrysler in 1992.

In another change in the company’s management hierarchy, Gilles will report to Frank O. Klegon, Executive Vice President of Product Development. Creed had reported directly to Nardelli but Chrysler calls the change an improvement that will allow the groups to work together.

Chrysler also announced another executive change. Andreas A. Schell has been appointed Vice President of Electrical / Electronics Engineering Core, effective immediately. Schell will be in charge of all electrical and electronics engineering design, development, quality and "voice of the customer" activities, succeeding William H. Mattingly, who left the Company last month. Schell is a crossover from Daimler-Benz which he joined in 1996 as a research engineer. He most recently served as director of Chrysler’s Recovery and Transformation Plan and Strategy.

Reported by Bill_Cawthon at (August 19 2008, 10 AM)

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Dealers express renewed confidence in Chrysler's future

The Chrysler, Jeep and Dodge Dealer Council met with company executives last week. After two days of meetings and a confidential preview of products in the Chrysler pipeline, the council co-chairs, Jim Arrigo of West Palm Beach, Florida, and Hayden Elder of Athens, Texas, came away with renewed confidence in the company and its future. They decided to share their impressions with their fellow dealers and bought a full-page ad in today's Automotive News. The text of their letter is below:

Dear Dealer Colleagues,

On behalf of the 18 members of your Chrysler, Jeep and Dodge Dealer Council, we are pleased to share with you the highlights of our recent two-day meeting with Chrysler management in Auburn Hills. Throughout the meeting, Jim Press, Steven Landry and Chrysler Financial's Darryl Jackson and Mark Manzo demonstrated that they are living by the ideals of "Customer First" and "Quality Period" and are committed to partnering with the dealers and driving dealer profitability. We left Auburn Hills very enthusiastic about our future products, and the processes being used to enhance their quality, appeal and reliability.

The meeting included good healthy dialogue on the issues of the day. But more importantly, we got renewed confidence in the financial health of the company, the future product plans and the commitment to quality.

Our first event was a visit to the Design Dome for an up close look at 2009-2011 models. Without a doubt, the current leadership's commitment to products and quality is having a significant impact on the lineup. The quality of materials put into the new interiors, such as in the new Dodge Ram, is unbelievable. The new approach to enhancing quality is evident in everything we saw. Jim Press then gave us an impressive look at product plans all the way out to 2014. Jim made it clear that Chrysler, with the support of Cerberus, is in this business to win and is making the investments in future products we need to succeed.

The surprise of the day came when Lou Rhodes, the President of Chrysler's advanced propulsion technologies/electric vehicle group, ENVI, gave us an opportunity to experience a developmental advanced-electric-powered automobile. It was fast, quiet and the technology is closer to market ready than any of us would have imagined. ENVI is a significant part of our future as Chrysler, Jeep and Dodge dealers, and we were thrilled to see Chrysler's progress in environmentally friendly advanced technology for the next generation.

We left Auburn Hills with two clear challenges. First, leveraging all the tools we have at our disposal to drive sales in August and September. There are strong incentives available that can help us run out the model year and be ready for a stronger 2009. Secondly, we have to focus on preparing our businesses for a greatly enhanced, high-quality Chrysler, Jeep and Dodge product lineup in the coming years.

We look forward to our local council meetings to report out the details of our discussions and share some insight into Chrysler's vision of the future. At the end of the meeting, Jim Press made it clear that the company is "all in" to grow our business, and the dealer council echoed that commitment on behalf of all 3,400 dealers. We are truly excited about the opportunities that lie ahead for us.

Thank you for your support.

Jim Arrigo and Hayden Elder
Dealer Council Co-Chairs

Reported by Bill_Cawthon at (August 18 2008, 02 PM)

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Wild Wheels @ Work party at WPC Museum Thursday

This Thursday, continue the daytime employee Wild Wheels @ Work party at the Walter P. Chrysler Museum with Dodge Challenger Night, the sixth and final event of the 2008 Cruise Nights series. All makes and models are welcome from 6-9 p.m., rain or shine. Check out the 2009 Dodge Challenger and Challenger R/T, the 2008 Dodge Challenger SRT8®, the just-released Mopar® Drag Race Package Challenger as well as 1970 and 1971 Challengers along with the 1970 Dodge Challenger T/A. Join AutoWeek Senior Editor Kevin Wilson at 7 p.m. for a look at 50 years of automotive passion as celebrated in the pages of AutoWeek. There also will be "best of" awards, opportunity to win four tickets to the Detroit Belle Isle Grand Prix, music, food and museum tours. Cruise Nights are presented by the Chrysler Jeep® Superstores and the Motor City Dodge Dealers.

Weather forecast is looking great so bring the wheels on out or just come on by!

Reported by Bill_Cawthon at (August 18 2008, 01 PM)

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Analysts say Chrysler most likely to fail

A panel of credit-rating agencies says Chrysler is the most likely of the Detroit automakers to seek bankruptcy protection in the next two years.

According to a report written by JPMorgan analyst Himanshu Patel, analysts from Standard & Poor's, Moody's Investors Service and Fitch Ratings discussed the outlook for the three automakers. The panel concluded Chrysler was most vulnerable, followed by General Motors and Ford.

S&P and Moody's both cut Chrysler's credit one level last week, leaving it seven steps below investment grade. Fitch lowered Chrysler’s rating to CCC, eight steps below investment grade, at the end of July.

“There seemed general agreement, too, that a filing by one of the Detroit three would be negative, on balance, for the remaining two companies,” Patel wrote, adding the result could create a drag on new-vehicle prices and trade-in terms.

Responding to the report, Chrysler spokeswoman Shawn Morgan said, “Any discussions regarding bankruptcy are speculative and are not reflective of the facts of our financial situation. Morgan added bankruptcy “…is not a measure we are considering. The company has a clear strategy to build a profitable enterprise for the long term as an independent company.”

The panel also said the automakers may have to rework agreements to form the Voluntary Employee Beneficiary Associations agree to in last year’s labor agreements with the United Auto Workers because the money promised for the initial funding may not be available. Ray Young, GM's Chief Financial Officer, has said GM might consider such modifications if the U.S. market continues to deteriorate.

Reported by Bill_Cawthon at (August 16 2008, 09 AM)

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Analyst says Chrysler bankruptcy fears "overblown"

Rumors of Chrysler’s imminent demise are overblown, according to Mark B. Warnsman, a New York-based auto analyst with Calyon Securities (USA) Inc., but the lack of transparency at the privately held automaker poses special risks to its competitors and business partners, from suppliers to dealers.

In a note to investors, Warnsman cautions the secrecy about Chrysler's financial status and financial market expectations that it will ultimately be sold off may prove to be a problem when an improving economy brings relief to the battered auto industry which currently is facing its worst sales year since 1993.

"As a large, newly private concern Chrysler has and, in our view, will continue to present a challenge to the remainder of the industry as the industry adapts to the reality and potential for sharp changes in the competitive landscape driven by Chrysler's actions," Warnsman wrote. He also noted, "Chrysler has embraced its status as a private entity as an enabler for a series of decisions that, at best, are unsettling to the rest of the industry. At worst, they could prove to be highly disruptive."

Responding to comments made by Chrysler president Tom LaSorda and other senior company executives, who maintain Cerberus is a long-term investor, Warnsman said, "Cerberus may be a long-term investor, but we see it exiting its Chrysler stake within five years of its initial acquisition."

Warnsman places a low probability on Cerberus selling Chrysler intact or spinning it off with an IPO. He considers bankruptcy as "a more remote possibility.” In Warnsman’s view, the most likely scenario is a “partnership-to-sell” as the holding company creates partnerships for key parts of Chrysler and then sells those parts.

Chrysler recently has become much more open about its finances, publicly stating it has $11.7 billion in cash and securities and had $1.1 billion in pre-EBITDA earnings. Tom LaSorda recently commented that Nissan carefully studied Chrysler’s financial health before giving its truck platform to the Auburn Hills-based automaker.

Warnsman, a former Ford executive, was a senior analyst with Prudential until it shuttered its research operations in June last year. He then joined Calyon, a Paris-based investment bank. When he was with Prudential, he opposed the breakup of DaimlerChrysler, saying, "In our view, the original merger strategy remains sound, and it is the execution that has lagged."

Reported by Bill_Cawthon at (August 16 2008, 07 AM)

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Chrysler to cut more suppliers

Chrysler plans to trim its supplier base as it works to achieve a 25 percent reduction in supply chain costs within three years.

"We're going to get rid of those that are not core," said John Campi, executive v-p of procurement. Campi noted that half of Chrysler’s 800 suppliers, taken as a group, provide about five percent of its parts.

"I am not looking to kill suppliers," he said. "But there are some I can't save."

Campi, one of Chrysler CEO Bob Nardelli’s old Home Depot crew, said the automaker might cut as many as 100 of its largest 300 current suppliers while it looks for new sources.

As an incentive, Campi said Chrysler plans to select up to ten key suppliers for its "Supplier Choice" program. These manufacturers would be exempt from competitive bidding but would work with Chrysler to set a market price for the contract. They would also be involved in vehicle development. Japan's Denso Corp. is the first company to be chosen and Campi hopes to announce a second company before the end of September.

With the declining sales of domestic-branded vehicles, auto industry suppliers have been taking big hits, caught between rising costs and automakers’ demands for reduced pricing. This has led to a worsening of relationships between car companies and component manufacturers. A recent survey by Planning Perspectives Inc. reported Chrysler had the worst supplier relationships of any of the top six automakers. To improve the situation, Chrysler has formed a dedicated supplier relations team and expanded its supplier advisory council. Campi said the company is ending its "Materials Cost Management" program, which required suppliers to meet specified annual cost reductions, because it didn't work.

On Thursday, in an effort to reassure suppliers that Chrysler is sound, Campi and Ronald Kolka, Chrysler's CFO, gave key suppliers an in-depth look at the privately held automaker’s finances.

Reported by Bill_Cawthon at (August 16 2008, 03 AM)

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UAW workers protest St. Louis plant closing

Chrysler’s Auburn Hills headquarters was the scene of a peaceful demonstration Thursday morning. More than 450 members of the United Auto Workers union traveled from St. Louis, Missouri, to protest the company’s plans to idle the St. Louis South Assembly Plant.

Joe Shields, president of UAW Local 110 which represents workers at the minivan plant, was among the protestors. Jeff Hagler, president of Local 412, encouraged UAW members in the Detroit area to turn out to help support the protest. In an e-mail, Hagler said the union needs to send a strong message to management.

The demonstration ended without incident around noon.

Reported by Bill_Cawthon at (August 15 2008, 03 AM)

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New Ram pickup will have lower price, better content

The 2009 Dodge Ram will be priced lower than its predecessor while offering more features. Mike Accavitti, director of the Dodge Brand and SRT global marketing and communications, said automatic transmissions and significant safety features like side curtain air bags, traction control and electronic stability control will be standard on all models and the new trucks will have upgraded interiors and more storage.

The new Dodge pickup will start at $22,170 for the base ST regular cab, $26,225 for the ST Quad Cab and $32,530 for the SLT Crew Cab. The Crew Cab is a first for Dodge and Accavitti noted the segment had grown in recent years, saying, "There's 50 percent of the truck market that we don't serve."

All prices include $900 in destination charges.

Reported by Bill_Cawthon at (August 14 2008, 06 AM)

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LaSorda reports progress on Chrysler-Nissan car

Vice Chairman Tom LaSorda says Chrysler and Nissan have completed much of the work on the new Chrysler-styled small car the Japanese company will be building for the American automaker. "We've pretty much finalized the design of the product," LaSorda said. He also said a name has been chosen but declined to reveal it. The new car is due to go on sale in late 2010.

Speaking at the Center for Automotive Research’s annual Management Briefing Seminars in Traverse City, Michigan, LaSorda also refuted reports the two companies were working on a new mid-size car or that there would be any expansion of the current relationship, noting, "We said we'd keep open dialogue but I think we're busy right now." LaSorda said Chrysler will continue to pursue additional agreements and is optimistic about being able to strike deals with companies in China India and Russia in the near term.

Nissan will also build a version of its Versa for Chrysler to sell in South America and Chery continues to work on a new small car for the Central American market but LaSorda said the Chinese automaker had not yet produced a car that can meet Chrysler’s standards.

LaSorda dismissed market speculation that Cerberus was considering selling Chrysler, saying, "We're going to rebound. It's just a question of time. Bottom line is they are holding on for the long term and we'll see what happens."

Reported by Bill_Cawthon at (August 14 2008, 06 AM)

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New crossover coming by 2010 to Jefferson North

Chrysler is spending $1.8 billion to convert the Jefferson North plant in Detroit, which now makes the Jeep Grand Cherokee, to production of a unibody sport utility vehicle. Tom LaSorda told radio station WWJ that the money will be spent on new tooling and a flexible body shop at the plant, and that the new vehicle will use the Phoenix V6 engines. Production is scheduled to start in early 2010.

Reported by DaveAdmin at (August 13 2008, 08 AM)

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2009 model year changes

While considerable information about the 2009 model year changes is still under embargo, Allpar now has information on the 2009 changes and upgrades, limited to what was released by Car and Driver.

Chrysler 2009 model year changes

Reported by DaveAdmin at (August 12 2008, 11 AM)

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