Chrysler to invest $179 million in Dundee plant

Chrysler will invest $179 million in the Dundee, Michigan plant it formerly shared with Mitsubishi and Hyundai in the Global Engine Manufacturing Alliance which was dissolved earlier this year. The funding will be used to covert production to building Fiat’s 1.4-liter, four-cylinder engines. The plant is expected to produce about 250,000 engines each year and will add an estimated 155 new jobs to the plant.

THe change will also help Fiat SpA to achieve one of the goals set by the government for increasing its ownership of Chrysler. By building an engine in the U.S., Fiat can increase its stake to 25 percent. It’s anticipated that Fiat will be able to achieve all the benchmarks to have a 35 percent controlling ownership of Chrysler by the end of 2011.

Fiat announces new Doblo

The 2011 Fiat Doblo, which is expected to eventually be exported to the United States in commercial vehicle form, has been announced. The small van is designed to carry up to seven people.

The original Doblo had sales of nearly one million; the new one has been thoroughly re-engineered on a new platform with a standard 108 inch wheelbase.

Minivan models have fold and flip seats, with numerous storage compartments. Both interior and exterior have been reworked. The EuroDoblo will have four engines: a 95 bhp gasoline (petrol) and three low-noise diesels with 90 to 135 hp. A Natural Power dual fuel (gas and methane) is to be added along with another Dualogic diesel. Start & Stop is optional; it shuts down the engine while standing idle.

The rear suspension is bi-link, calibrated for each model. Stability control, ABS with electronic brake distribution, and a hill-holder are standard.

Doblo Cargo has a squarish cargo bay, with sliding side doors and a large rear hatch. It has an inner length up to 2.2 meters [a meter is three inches just longer than a yard], width between wheel arches of 1.23 meters, and volume from 3.4 to 4.2 cubic meters (120-148 cubic feet). Combined gas mileage is around 4.8 liters / 100 km with the smallest diesel – around 49 mpg but that engine is unlikely to be used in North America. The range includes short and long wheelbase vans with high roof versions.

Chrysler ends ENVI, redeploys engineers

Chrysler has shut down its standalone ENVI electric vehicle program and its personnel have been assigned to other vehicle development programs as Chrysler and Fiat merge their hybrid and electric vehicle programs.

Lou Rhodes, who was in charge of ENVI, continues to oversee electrical vehicle development for both companies. A two-mode hybrid versions of the Ram pickup is still on tap for next year. Plug-in hybrids of the Ram and a minivan are due in 2011 as part of a 200-vehicle fleet developed with a $70-million grant from the U.S. Department of Energy. Chrysler will not have a hybrid passenger car like the Toyota Prius or Ford Fusion until 2015.

At the moment, it looks like the first all-electric vehicle from the Fiat-Chrysler effort will probably be a Fiat Doblo commercial van.

Chrysler CEO Sergio Marchionne says Chrysler’s electric vehicle strategy is still under review but he expects electric vehicles to account for one to two percent of sales by 2014.

Ford will not sell Ka in U.S.

According to CEO Alan Mulalley, Ford won’t be bringing the second-generation KA minicar to North America.

The Ka, which has been enormously popular in Europe, was being considered but Ford executives decided the car was too small for American tastes. The Ford Fiesta, which goes on sale early next year, will be the blue oval’s smallest entry in the passenger car market.

The current Ka was developed with Fiat S.p.A. and shares its platform with the Fiat 500. Both cars are built at Fiat’s plant in Tichy, Poland.

Chrysler Group will be introducing the Fiat 500 to the American market in 2011.

Chrysler & Dodge to be rebadged for Europe

The new Chrysler and Dodge logos will not be appearing on cars destined for the European market after 2011. Instead, cars sold in the North American market as Chryslers and Dodges will be badged as Lancias and Fiats. The move is designed to save money by reducing distribution costs.

The Chrysler Voyager minivan will appear as the replacement for the Lancia Phedra and hte next-generation 300C will be sold as the successor to the upscale Lancia Thesis. The next Sebring and the new midsize crossover will also wear Lancia badges. The Dodge Journey will become the replacement for the large Fiat Ulysse minivan and the Fiat Chroma will be a re-branded version of the upcoming Dodge mid-size sedan.

As was confirmed yesterday, Jeep will be hte only CHrysler brand that will be sold in Europe under its own name.

Fiat 500 to be a dealer draw

A North American version of the Fiat 500 is expected to increase foot traffic and new customers. It will mainly be sold in key metro areas with specific interior showroom branded salons, and a high degree of customization through accessories. The 500 will have dedicated sales and service staff.

Dealer network productivity is to be increased, with redefined dealer standards. Chrysler went from 21% of dealers to 12% in the US, losing 2,831 dealers in the last 19 years. Project Genesis is continuing as planned, to increase franchise attractiveness, profits, and throughput, providing a sound base for reinvestment. Full implementation is due for 2011. At the moment, Chrysler has around 440 sales per dealer in metro areas; the goal is for them to go up over 700. Tight credit is a serious problem especially for dealers — and Chrysler dealers tend to sell fewer cars per month than competitors. New dealer financing will replace Chrysler Financial by December.

Just 36% of dealers have a return on sales greater than 1.5%; they expect this to increase to 60% by 2014. Dealer support is being expanded to include financial skills. Planned growth of commercial vehicle sales will require overcoming strong competition and changing service hours to meet business owners’ needs. In general, dealers need to overcome problems of high land cost, and customer convenience (old or suboptimal locations).

A green facility initiative is planned to both increase environmental friendliness, and to cut costs.

Since June 10, dealers have committed over $250 million in capital investment, with 20 new buildings, 200 major renovations.

Chrysler five-year plan in progress

Chrysler’s five year plan is being unveiled, with a limited-entry webcast on Chrysler LLC’s corporate web site, constant updates at Automotive News, and frequent updates here at allpar.com. The plan will take around five hours to describe.

The plan is for a complete repackaging of all current vehicles, with new options mixes, by the end of the fourth quarter of 2009. A complete overhaul of branding, marketing, positioning, and point of sale is to be completed by the end second quarter of 2010.

Follow our regularly updated page at http://www.allpar.com/corporate/chrysler-group/five-year-plan.html