Chrysler above average, Mercedes in long-term reliability

Chrysler scored above the average in J.D. Power’s three-year reliability survey, which looked at repairs to 2006 vehicles. Jaguar and General Motor’s Buick headed the list this year with just 122 problems per hundred vehicles each; Lexus trailed the American and British firms, with 126 problems per hundred, and Toyota came in close behind at 129. Oddly, the Scion brand, made by Toyota, came in very low, at 222 problems per hundred vehicles – lower than any American vehicles.

Aside from the Grand Caravan topping the minivan charts, no Chrysler vehicle came in at first, second, or third place in their segments. Toyota garnered the highest number of top rankings, with five (Prius, Solara, Highlander, Sequoia, Tundra). The Honda Odyssey did not appear in the top three vans (nor did the Chrysler Town & Country, though it might have been lumped in with the Grand Caravan). Mercedes came in second place for premium sporty car.

The top German brand was Porsche, at 150 per hundred. Chrysler came in at 165, edging out BMW at 166 and the industry average of 170. Mercedes fell at 184, far lower than most luxury brands and substantially lower than Chrysler.

Dodge fared less well, coming in at 202 overall, despite having the highest quality minivan; Dodge was beaten by both Ford and Chevrolet in this measure, but beat Mini, Kia, Pontiac, Mazda, and Volkswagen. Jeep came in at 220, below Kia’s 218 but above Hummer and Scion.

The worst record was held by Suzuki, with 263 problems per hundred vehicles; and by German automaker Volkswagen, with 260.

Two Sprinter replacements under consideration

The Sprinter, already faced with unaccustomed competition from the Ford Transit, may soon be faced with two other European competitors.  Gualberto Ranieri, the new head of communications of Chrysler, said that Chrysler, Fiat, and Iveco were considering importing the Fiat Ducato, a smaller van, and the Iveco Daily, a Sprinter-sized van, under the Dodge label. They would not be sold as Fiats, a designation reserved for the 500. There was no indication of when a decision would be announced.

Dodge Sprinter to be replaced by Mercedes

Mercedes will be pulling the Sprinter from Dodge dealerships into Mercedes dealerships as of January 1, according to Automotive News. The Sprinter, which will be re-launched with a different diesel engine (the one used in Mercedes SUVs), is assembled in South Carolina from knockdown kits. It has been a moderately slow seller, with a peak of 21,961 Dodge sales, and now faces competition from the Ford Transit, a European-design commercial van.

Dodge Sprinter to be dropped

Mercedes-Benz USA announced today that it will assume responsibility for the sales, marketing, distribution and service of Mercedes-Benz and Freightliner Sprinter vans in the U.S. The German automaker will create Daimler Vans USA, LLC as a wholly-owned subsidiary of Daimler AG. Sales of Mercedes-branded Sprinters will begin in 20010.

The Dodge Sprinter will be discontinued.

Loss of Chrysler’s only commercial van may be short-lived. Fiat SpA has its own van, the Ducato, which could serve as the basis for a new Dodge truck.

Chrysler Group sues Daimler over contracts

Chrysler Group LLC has joined its unsecured creditors in suing its former owner Daimler AG. However, unlike the creditors, who are suing over Daimler’s alleged past misdeeds, Chrysler is suing because it claims Daimler is not honoring its contracts to supply Chrysler with components now.

The latest lawsuit was filed last Friday in U.S. Bankruptcy Court in New York City.

“Daimler’s conduct threatens to shut down Chrysler Group’s manufacture of key product lines,” according to Chrysler spokesman Gualberto Ranieri who noted Daimler’s actions could shut down production of the Grand Cherokee production at the Jefferson North assembly plant in Detroit and the Dodge Charger, Challenger and Chrysler 300 lines at the Brampton, Ontario plant.

Chrysler says Daimler is refusing to supply steering columns and torque converters, threatening production of new Chrysler vehicles. Daimler claims Chrysler owes it 55 million euros (more than $78.6 million) as compensation for the Detroit automaker’s failure to purchase an agreed-upon number of 2.2-liter diesel engines. In its Friday filing, Chrysler says the shortfall issue was resolved along with other disputes in an agreement made last April 17, before Chrysler LLC filed bankruptcy. The agreement was ratified later by the bankruptcy court.

Ranieri accused Daimler of extortion and said the German company’s conduct is in direct violation of the April 17 agreement.

Daimler spokeswoman Julia Engelhardt said the company rejects Chrysler’s claims, adding, “We believe these claims are without merit, and we will defend ourselves vigorously.”

Chrysler creditors can sue Daimler

Judge Arthur Gonzalez has given Chrysler’s unsecured creditors permission to sue Daimler AG, with the claim that Daimler took away Chrysler’s most valuable assets before selling it to Cerberus Capital Management. The group is seeking over $3 billion in debt.

The details of the suit have not been released. However, it appears that the Treasury could also participate if the claim is upheld.

The suit must be filed by Tuesday if it is to proceed.

Chrysler creditors want to sue Daimler AG

Creditors of the former Chrysler LLC have asked Judge Arthur Gonzalez, who continues to preside over the Chapter 11 bankruptcy of Old Carco, the company created to dispose of the automaker’s abandoned assets, for permission to sure former owner Daimler AG.

The group representing Chrysler’s unsecured creditors claim the German company stripped Chrysler of its most valuable assets during the transfer of a majority of Chrysler to Cerberus Capital Management two years ago. The assets in question were not identified but the group values them at more than $3 billion.

Daimler denies the charges, calling the claims “completely without merit” and a company spokesman says the German automaker will defend itself “vigorously.”

Judge Gonzalez set a hearing for August 13.