• Nov 19th 2009 at 8:58AM
  • 17
Two weeks ago Fiat and Chrysler unleashed an ambitious five-year plan to return Detroit's number three automaker to financial and product health. The plan called for 14 all-new models based mostly on Fiat platforms and ten more vehicles which will receive much-needed attention. While Senator John McCain isn't so sure Chrysler will survive the next few years, Obama Auto Task Force Chief Ron Bloom likes what he sees.

Automotive News is reporting that Bloom says the Pentastar plan shows "a huge sense of urgency. We see a huge dedication and commitment, working extremely hard." Bloom also added that he agrees with CEO Sergio Marchionne when he said that team Pentastar has their work cut out for them.

Considering that the US government spent billions bailing out Chrysler, Bloom's confidence means a lot. But while the government saved Chrysler, the United Auto Workers is the company's biggest shareholder. The union currently owns 55% of the new Chrysler, and that won't change until the Auburn Hills, MI-based automaker goes public and pays off its pension obligations. Marchionne has said that the public move could come as early as 2011, but Bloom says that time line could be premature. Either way, we're sure Chrysler will go public at the earliest possible time, but that time won't come until the stock-buying public sees some new products coming from Auburn Hills via Italy.

[Source: Automotive News - Sub. Req. | Image Source: Bill Pugliano/Getty]

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    • 1 Second Ago
      • 5 Years Ago
      "Obama Auto Task Force Chief Ron Bloom likes what he sees."

      Ya sure. What else can they really say? "Wow, we really flushed that money in the toilet!"

      I've seen the plan and the numbers don't add up. They claim they are going to gain 2% more market share in the next year with no NEW product. Like that's going to happen.

      It's all up to Fiat now. If new competitive CARS don't get here soon shut out the lights in Auburn Hills......
        • 5 Years Ago
        14 all-new models based mostly on Fiat platforms

        that right there proves McCain's point and the point many have made. Fiat will survive but ChryCo wont. Fiat has bought a dealer network and US mftg capabilities. The only ChryCo surviving is Jeep, truck, and large/RWD platform development. Everything else will be Fiat.

        Personally, they would haved been better off with new plants in the SE and the Saturn network but oh well, maybe the Trucks and Jeep are worth it
      • 5 Years Ago
      "The union currently owns 55% of the new Chrysler, and that won't change until the Auburn Hills, MI-based automaker goes public and pays off its pension obligations."

      According to Business Week back in May it was around $9 billion underfunded.
      • 5 Years Ago
      A "huge sense of urgency"? More like a huge case of stupidity.
      • 5 Years Ago
      A couple of thoughts.

      He is an employee (senior) of the Federal government which owns a stake in the success in this company. In private industry, an executive of a company making these types of comments would be reviewed for two things; 1. Continued employment of the company and ; 2. A stake or interest in the competition would be determined to rule out profiteering in the failure of the company and the success of the competition. Does this fine Ex-Presidential candidate disclose his investments in competitive firms? I'm just curious. For the fine folks at Chrysler - I would take this as a compliment. Consider the source - he chose Sarah Palin, and we all know how that is turning out. Criticism from a loser is just that - a loser's criticism. I think he drives a Toyota - saw many pics of that during the campaign when he was in his "everyman" mode.

      • 5 Years Ago
      Guys the deal here is very simple to understand.
      Chrysler and FIAT complement each other, that's as simple as that.
      The reason why this marriage will work is because the 2 car manufacturers needs exactly what the other does best.

      For the person doubting the projected 2% increase in sales for the next year, it is true that Chrysler won't have new cars to sell, but FIAT ordered a facelift both external and of the interiors of the disappointing Chrysler and Dodge sedans to start with.
      It could be enough to push the sales by that 2% that Marchionne predicted.

      Also you are understimating the cost saving advantage of sharing platforms and technologies, Marchinne says that Chrysler finances are actually rather good becasuse of the cost cutting measures the previous management introduced, and that might see Chrysler through the next couple of years until the new cars will arrive.
      • 5 Years Ago
      You know what would speed up the whole process of getting Chrysler dealers new models? Make the U.S. emissions and safety standards the same as Europe's. They could begin selling many of the Fiat and Alfa models almost immediately without having to redesign them to meet the rather redundant U.S. standards. Ford and GM could also begin bringing over some of their good European stuff a lot quicker too.
      • 5 Years Ago
      Better to say they are encouraged by Fiat's plan, than publicly say that they think it's going to fail like a certain dillhole. :rolleyes:

      • 5 Years Ago
      "until the stock-buying public sees some new products coming from Auburn Hills via Italy."

      Err, Shunk, look up "via" in the dictionary if you have one. It means "by way of". So, what you're saying is that products will come from Auburn Hills, then travel through Italy, before being sold to the customer. I don't *think* that's what you meant, but there's no telling really.
      • 5 Years Ago
      All I can say is, cities want hybrid taxies. Where is the hybrid caravan? Companies want to take advantage of saying they are green, where is the hybrid Dakota parts running truck & caravan panel van that can run in EV mode when switched to it for under 20mph operation. Good for limited in building operation. I'm sure the Ram 1500 5.7L hemi MDS hybrid is nice but I would think a 3.6L MDS hybrid would get better fuel mileage and be more affordable and provide similar accelleration performance as the 4.7L since the 3.6L will have electric assist. I'm sure the 3.6L MDS hybrid would be a better fleet vehicle for the government and forest service. Forest service use to buy 225cu 2dr & 4dr dodge pickups in the '60's & '70's. The main advantage of a Durango Hybrid would be if boarder patrol were to pick it up. Too expensive for the general public.
      So far Sprinter dodge vans are the best hybrids. But Sprinter is gone back to MB.
      • 5 Years Ago
      thanks again auto task force?
      • 5 Years Ago
      BTW, they say 2% increase in market share, not sales. That is a big number.
      • 5 Years Ago
      The only new products in the near future are the new Grand Cherokee and Fiat 500. Both are basically niche products.
        • 5 Years Ago
        In addition to the Grand Cherokee and Fiat 500, Chrysler also has a new Dodge Charger and Chrysler 300C coming out.
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