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Filed under: Chrysler, LLC.

Ex-Chrysler media man Vines named head of P.R. at... Christian publishing house?

Filed under: Hirings/Firings/Layoffs, Chrysler, LLC.



Former Chrysler PR chief Jason Vines has had more than his fair share of jobs over the years. He's had automotive gigs at Chrysler, Ford and Nissan, he's worked as a stand-up comedian, he spent time at Compuware and he even spent time at the food rescue program Forgotten Harvest. We've even spotted Vines (seen here at left, with comedian David Spade) regularly hanging with John McElroy on Autoline After Hours.

The likable master of spin has reportedly found yet another calling, as he's been named the Vice President of public relations and communications at Zondervan; a Christian publishing division of HarperCollins out of Grand Rapids, MI. The move is a bit of a surprise, considering the fact that Vines' outspoken personality (some would call him outspoken, others crass) doesn't exactly jibe with the conservative nature of most Christian organizations. Vines' new job shows that really talented people tend to find work even in a down market.

[Source: Automotive News - subs req'd | Image: Bill Pugliano/Getty]

Consumer groups reportedly asking for liability warning labels on used Chryslers

Filed under: Car Buying, Government/Legal, Chrysler, LLC., GM, Carsumer Advocacy



When Chrysler was in Chapter 11, the U.S. bankruptcy court decided that the new Pentastar would be free of any liability for accidents that involve Chrysler-branded products sold prior the bankruptcy. Automotive News is reporting that five consumer groups are looking to get the word out that used Chrysler products will not be eligible for such liability claims by putting a warning sticker on each and every used Dodge, Chrysler, and Jeep that is for sale.

The Federal Trade Commission is reviewing the petition, which states that consumers who purchase a used Chrysler vehicle risk "being held responsible for millions of dollars in medical expenses, hundreds of thousands of dollars in lost income and other losses – with no possibility of recompense – even if their injury was clearly Chrysler's fault." Under the current plan, customers looking to sue Chrysler for defective product concerns will have to go after old Chrysler, which is broke, bankrupt, and doomed.

Chrysler, of course, is against the petition, as the warning may harm a dealer's ability to sell used Chrysler-branded products. In an email to Automotive News, Chrysler spokesman Michael Palese wrote "In Chrysler's bankruptcy, the ability to form a new company free from the product liability burden of the old company was essential to the new company's survival." Palese also mentions that the petition has also uncovered no new defects or safety issues.

Automotive News is also reporting that General Motors has worked out a deal with state attorneys general to consider claims as long as they were submitted after the automaker's bankruptcy.

[Source: Automotive News - subs req'd | Image: Robyn Beck/AFP/Getty]

Respect Your Elders: Even Richard Petty stung by Chrysler's bankruptcy?

Filed under: Motorsports, Hirings/Firings/Layoffs, Chrysler, LLC., Earnings/Financials, Celebrities



Richard Petty – quite possibly the best NASCAR racer of all time and the man in charge of Richard Petty Motorsports – says that Chrysler stopped paying his team after filing for bankruptcy last month. No surprise there. The lack of funds prompted RPM to lay off nine workers, although Petty is now saying there is hope that the automaker will soon work out some sort of deal to begin making payments once again now that it's clear of court proceedings.

It isn't clear at this moment if Petty's team, which is in the final year of its current contract with Chrysler, will soldier on using Dodge Chargers Challengers next year. Earlier this month, The King said his team would be willing to talk to any and all manufacturers regarding the 2010 NASCAR season, including Dodge. We'll surely know soon enough, but internet message boards are awash with rumors the team has been in talks with *gasp* Toyota.

[Source: ESPN via MLive.com | Image: Jason Smith/Getty]

Chrysler fills out board of directors

Filed under: Government/Legal, Chrysler, LLC., Earnings/Financials



The new Chrysler Group, LLC is out of bankruptcy, in bed with the Italians and the U.S. Government, and now it has a complete board of directors. Chrysler is forging ahead with a fresh group of board members, including former governors, Fiat royalty, and some people you've probably never heard of.

Chrysler announced the rest of its nine member board of directors over the holiday weekend, joining active chairman C. Robert Kidder, who was announced in May. Among the new board members are former Michigan Governor and U.S. Congressman James Blanchard, Fiat CEO Sergio Marchionne, Fiat Powertrain CEO Alfredo Altavill and former Northwest Airlines CEO Douglas Steenland.

Noticeably absent from the board is overt representation from the United Auto Workers, which is perhaps surprising as the labor group owns part of the new Chrysler. Hit the jump to read up on all of the automaker's board members.

[Source: Chrysler | Image: Bill Pugliano/Getty]

Dead Diesels: Six automakers reportedly kill plans for oil burners

Filed under: Tech, Chrysler, LLC., Ford, GM, Honda, Nissan, Toyota



Diesel's near-term prospects in America took a huge hit with the revelation that nine diesel-powered 2010 models are on hold. Ford, General Motors, Chrysler, Toyota, Honda, and Nissan have put the kibosh on rolling out more oil burners due to cost and perception issues.

Toyota's obviously on a hybrid run and doesn't want to expel the effort or expense of investing in diesel for the American market -- and having to overcome America's dirty diesel perceptions. The others, as mass market manufacturers, simply need more justification for the cost and complexity of oilburners in order to make the case for consumers to spend more.

Additionally, diesel's benefits are weighted differently according to EPA or CAFE standards. The EPA mileage numbers present diesels well, but CAFE's differing fuel mileage equation makes gas-hybrids look better than diesels, and CAFE is something all automakers are looking at. However, you'll notice that German brands aren't mentioned -- their price premium and European diesel volumes make a worthwhile case for diesels, so those diesel Jetta Sportwagons won't be going away any time soon.

[Source: Automotive News - Sub. Req.]

REPORT: Chrysler christens Brandon Faurote as new chief designer

Filed under: Chrysler, LLC., Dodge, Jeep


Chrysler Firepower Concept - Click above for a high-res image gallery

When Sergio Marchionne revamped Fiat, he installed new designers at each company division and charged them with creating products that would define each brand and move metal. Marchionne has apparently done the same with Chrysler, putting Brandon Faurote in charge of Chrysler, Joseph Dehner in at Dodge, and Mark Allen in at Jeep.

Faurote has been with the Pentastar since he was 22, and has worked on offerings like the 1999 Jeep Cherokee and the 2001 Chrysler and Dodge minivans. Since 2003, his title has been Chief Designer - Advanced Product Design, and he's given us concept cars like the 2005 Chrysler Firepower (pictured). He's also given us the Chrysler Imperial, so we pray his eye for the brand leads more toward artillery than royalty.

Joseph Dehner leads the Dodge charge and has the Crossfire and 2001 Chrysler Sebring in his quiver... but also the exterior design of the 2007 Sebring. Mark Allen has the the 2006 Jeep Wrangler and 2009 Dodge Ram 150 to take credit for, as well as super cool Jeep concepts like the Jeep JT and Jeep J8 Sarge. Here's to hoping Fiat encourages – and pays for – them to give us their best. Hat tip to 13enS!



[Source: The Motor Report]

Nopar: Pontiac G6 "Super Bee"

Filed under: Sedans/Saloons, Chrysler, LLC., GM, Pontiac, Humor, Special/Limited Editions


Pontiac G6 "Super Bee" - Click above for photo gallery

While Pontiac gets ready to take a dirt nap next to Oldsmobile and the folks at Chrysler's Auburn Hills HQ brush up on their Italian, at least one American driver is showing us what might have been if the once-proposed Chrysler/GM merger (remember those days?) had come to be. Consider the perfect storm of hideous product decisions that could have ensued under such a tie-up.

What's that? Your mind's eye can't envision a scenario so horrifying? No worries. Autoblog reader Berto snagged some photos illustrating just how kooky things could have gotten. Imagine one automaker's muscle heritage fused with the base-level front-drive mediocrity of another. Imagine, friends, the Pontiac G6 V6 Super Bee. Thanks, Berto!



[Photos: Berto]

Comcast pulls ad criticizing GM, Chrysler to review claims

Filed under: Government/Legal, Videos, Chrysler, LLC., GM


Commercial regarding GM and Chrysler's liability claims -- Click above to view the after the jump

A group called the Ad Hoc Committee of Consumer Victims of GM and Chrysler put together a commercial to run on Comcast throughout the weekend. The group numbers 460 people, 300 of whom are plaintiffs against GM, the rest against Chrysler, all of whom claim catastrophic injuries or the deaths of relations due to defective vehicles from the two companies.

The ad attacks the issue of New GM not being responsible for such liabilities. The claims, said to add up to about $1.25 billion for just the GM parties, would be addressed by the Old GM and lumped in with every other unsecured creditor's claims. That means that if the plaintiffs received anything at all, it wouldn't be much. GM is just following the government's orders -- it was the Administration that decreed post-bankruptcy Chrysler and GM won't be responsible for vehicles sold previous to bankruptcy.

GM's attorneys called Comcast, and Comcast explained pulling the ad by saying "We have temporarily stopped airing the ad while we conduct a review of the claims it makes." The commercial only asserts a few facts which could be easily checked, and makes a generalization about claims that won't be reported if people know nothing will come of them. Comcast hasn't given any timeline for that review, though. You can watch the ad after the jump and see for yourself.

[Source: Washington Post via TTAC]

REPORT: Alfa Romeo to lead American charge, Fiat 500 to go it alone

Filed under: Chrysler, LLC., Alfa Romeo, FIAT

Alfa Romeo has been toying with the idea of returning to America for years, but now that Fiat CEO Sergio Marchionne is working from Auburn Hills, the time seems more ripe than ever as details emerge on Fiat/Chrysler's strategy vis-a-vis the North American market. While Marchionne implements management restructuring designed to reduce Chrysler's executive hierarchy and separate its divisions into more independent units, a product strategy is rapidly being put into place to make up for lost time during the bankruptcy procedure and get the company back on track.

With Maserati and Ferrari already present in North America and Lancia offering little to entice North American buyers, the Italian side of the partnership looks poised to enter the market with Fiat and Alfa Romeo models. However, while future Chryslers, Dodges and Jeeps will share underpinnings with their Fiat and Alfa Romeo counterparts – including an Alfa GTX to be based on the new Jeep Grand Cherokee – the Fiat brand itself will have a very limited presence in the North American market, offering only the 500 retro hatchback as a stand-alone model... not unlike BMW's Mini brand. Other Fiat models will carry Chrysler, Dodge and Jeep badges, while Alfa Romeo will take the higher profile on this side of the Atlantic, offering cars under the stoic marque to compete with other European luxury brands. As the Freep points out, Chrysler and Alfa had collaborated in the early '90s to bring Alfas Stateside with limited success, but Marchionne evidently thinks it'll have better luck this time around.

[Source: Detroit Free Press]

Chrysler bankruptcy lawyers rack up $12.7M bill in first month

Filed under: Government/Legal, Chrysler, LLC.



During bankruptcy, just about everyone involved with the affected company is going to feel the pain in some form. That is, of course, unless you're a lawyer. New York law firm Jonas Day has represented Chrysler during its time spent in Chapter 11 bankruptcy, and Automotive News is reporting that the firm billed $12.7 million for the month of May alone. That figure included 72 partners working on the case, in addition to another 193 lawyers chipping in. About $256,000 of that figure accounts for expenses, and the rest encompasses some hefty legal fees.

We're not all that surprised that it takes over 250 lawyers to execute a Chapter 11 bankruptcy of Chrysler's magnitude in only 40 days, but the figures for the firm's head lawyer, Corinne Ball, are staggering. Ball booked 15 hours a day, seven days per week for the entire month, at a bill rate of $900 per hour! That's $401,310 to you and I. On average, lawyers on the case billed $477 per hour, while paralegals came in at $224.

How much does it cost to feed 266 lawyers for a month? $5,878. That's about $20 per person for three meals, seven days a week. Taxi fees? $4,247. Document copying was a hefty $52,000 and hotel bills rang up at $62,000. Recession? What recession? Those numbers are pretty large, but in the end, results are worth big money. And getting a company the size of Chrysler out of bankruptcy in 40 days is no small task.

[Source: Automotive News, sub. req'd | Photo by Joe Raedle/Getty]

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