Autoblog

REPORT: Detroit Three call Japan's cash-for-clunkers program unfair

Chris Shunk — Fri, 11 Dec 2009 10:32:00 EST

Filed under: Car Buying, Government/Legal, Japan

The U.S. Car Allowance Rebate System (a.k.a. 'cash-for-clunkers') program was a short-term boon for automakers participating in our market. Sales went up, inventory went down and nearly 700,000 vehicles that would likely have otherwise ended up on used car lots were destroyed. And since the U.S. is essentially a free market where automakers around the globe are allowed to participate, Japanese and European automakers benefited from the program as well. In fact, Japanese automakers fared even better than their U.S. competitors, as Toyota, Honda and Nissan are said to have surpassed their market share with the program. A reported 319,000 of the 677,000 vehicles sold via cash-for-clunkers were from Japanese companies. But while the U.S. C4C program took place in a free market where everybody is able to participate, critics are complaining that the new Japanese program is anything but equal opportunity.

Japan is considered by many to be the world's most insular auto market, and its $3.7 billion government clunker program makes U.S. autos ineligible for government assistance. According to The Detroit News, the program, which the Japanese government is using to spur sales (which are down 17 percent versus 2008 levels), provides cash rebates of up to $2,830 for customers who turn in vehicles 13 years or older. Car buyers who don't turn in a vehicle can still get over $1,100 toward the purchase of a new vehicle. An estimated 87 percent of all Japanese vehicles are eligible for the program, while zero vehicles from General Motors, Ford and Chrysler will be eligible.

The DetNews is reporting that Motown automakers have written a letter to the Deputy U.S. Trade Representative calling for action on a matter that was called "another example of Japan continuing efforts to discriminate against imported vehicles." Carol Guthry of the U.S. Trade Representative told the newspaper that the government is working to resolve the issue, adding "our position remains that changes are necessary to give U.S. vehicles greater opportunity to qualify under Japan's program."

While we're not exactly import/export experts and we don't have any experience with foreign relations, we're thinking it's about time Japan treated foreign automakers in the Land of the Rising Sun with the same level of equality that its automakers receive elsewhere in the world. What do you think? Have your say in 'Comments.'

[Source: The Detroit News | Image: Yoshikazu Tsuno/AFP/Getty]

REPORT: Detroit Three call Japan's cash-for-clunkers program unfair originally appeared on Autoblog on Fri, 11 Dec 2009 10:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Fed predicts it will lose $30B on auto industry bailout

Chris Shunk — Thu, 10 Dec 2009 13:27:00 EST

Filed under: Government/Legal, Chrysler, GM, Earnings/Financials

2009 isn't quite over yet, but we're pretty sure most automakers would rather forget that it ever happened. And while General Motors and Chrysler suffered the pain and humiliation of bankruptcy and workers lost thousands of jobs and many plants and dealerships closed, the good news is that the General and the Pentastar are now more fiscally healthy than they've been in ages. The bad news is that it cost U.S. taxpayers an estimated $82 billion to save what has been called hundreds of thousands of jobs.

The Detroit News is reporting that after wading through the wreckage of the auto bailout, the Obama Administration only expects to get back an estimated $52 billion of its original investment. That's horrible news, right? Not so, says Gene Sperling, the senior counsel to Treasury Secretary Timothy Geithner. He said the $30 billion estimate is better than the $44 billion the government thought it would lose a few months ago. And with the perceived stabilization of the auto industry, Sperling feels the numbers could improve.

The DetNews reports that President Obama stressed during a speech on the economy that while the bailout of the auto industry wasn't politically popular, it was absolutely necessary to save "hundreds of thousands of jobs." The president then added "these were not decisions that were popular or satisfying; these were decisions that were necessary."

There are signs that at least GM will start paying the government back $6.7 billion as early as the end of the year. Chairman and interim CEO Ed Whitacre has reportedly intimated that the company could pay the money back in one lump sum. And once the auto industry is in a little better shape, the government could recoup much more cash when the General goes public. For the moment, though, Uncle Sam (e.g. the U.S. taxpayers) still owns 61 percent of the new GM.

[Source: The Detroit News | Image: Saul Loeb/AFP/Getty]

REPORT: Fed predicts it will lose $30B on auto industry bailout originally appeared on Autoblog on Thu, 10 Dec 2009 13:27:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Chrysler dealers unhappy over new ads, want regional marketing spending restored [w/VIDEO]

Dan Roth — Thu, 10 Dec 2009 11:28:00 EST

Filed under: Car Buying, Marketing/Advertising, Chrysler, Dodge, Jeep

New Jeep spot - click above to view commercial

Spend any time in the advertising business, and you'll see this kind of struggle. So called "high-concept" advertising is what tends to be what consumers emotionally engage with and remember. Usually, only big brands with a national presence and lots of money can pull off advertising that is more about the spot than the product it's hawking. Running with the big boys requires vision on the part of decision makers. While big companies have marketing specialists with high falutin' degrees and summat, the retailers that close sales and take the money from your hand focus much more on product.

According to Bloomberg, Chrysler and its dealer body are playing out this very struggle. Dealers are unhappy with the company's new advertising efforts and budget changes that have been made as part of the recently enacted five year business plan. Facing sales that were down twenty five percent in November, dealers have asked that the new ads focusing on lifestyle and brand-building, such as the latest Jeep spots, be stopped. Advertising that shows vehicles and their features, along with a harder sell on the price and incentive front would be preferable to the dealers.

Cash on the hood is down, however, and Chrysler has some vehicles that are challenging to sell. Regional advertising budgets have been readjusted, as well, siphoning off funds from some higher-volume dealers to regions without enough volume to get any help in the fourth quarter otherwise. The plan in Auburn Hills is to aggressively rebuild its brands over the next five years, which is an image-building operation where the new campaign makes sense. In the meantime, however, the company needs to sell cars to stay solvent until its touchy-feely advertising takes root; an effort that may be better served by the product-centric advertising the dealers want. While everyone loves clever advertisements, sometimes it's just best to scream about the deals on Sunday, Sunday, SUNDAY!

Hit the jump to see an example of the new commercials.

[Source: Bloomberg]

Continue reading REPORT: Chrysler dealers unhappy over new ads, want regional marketing spending restored [w/VIDEO]

REPORT: Chrysler dealers unhappy over new ads, want regional marketing spending restored [w/VIDEO] originally appeared on Autoblog on Thu, 10 Dec 2009 11:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: GM, Ford to dramatically increase Q1 production versus year ago numbers

Chris Shunk — Wed, 09 Dec 2009 10:29:00 EST

Filed under: Plants/Manufacturing, Chrysler, Ford, GM

The first quarter of 2009 could best be described as the worst of times in the auto industry. With the full weight of the global financial collapse weighing down on the industry, sales dropped like a stone and production screeched to a halt. General Motors and Ford produced only 371,000 and 349,000 vehicles respectively during Q1 2009, a mere fraction of the industry giants' overall capacity. One year later, the auto industry here in the U.S. is still far from healthy, but many industry experts feel the market has stabilized.

Evidence of that fact presents itself when looking at production data for the fourth quarter of 2009 versus the first quarter of 2010. Automotive News is reporting that Ford plans to build 550,000 cars and trucks in the first quarter while GM plans 650,000 units. While that's a bump of 58 percent and 75 percent versus Q1 2009, respectively, the numbers are within a few thousand units of Q4 production. But even compared to Q4, production is up around four percent for both Ford and GM - a hopeful sign for the industry.

But while GM and Ford appear to have good production news, AN is reporting that the forecast is a bit cloudier for Chrysler. The Pentastar's recent announcement that it would prolong shutdown over the holidays throws some doubt on the Auburn Hills, MI-based automaker's reported plan to increase Q1 2010 production by 56% versus Q1 2009. While Chrysler was supposed to up production to 376,000 units, the shutdown could drop production by up to 30,000 units.

[Source: Automotive News - subs req'd | Image: Scott Olson/Getty]

REPORT: GM, Ford to dramatically increase Q1 production versus year ago numbers originally appeared on Autoblog on Wed, 09 Dec 2009 10:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Chrysler UK says "Change is coming" on New Year's Day

Jonathon Ramsey — Wed, 09 Dec 2009 08:31:00 EST

Filed under: Detroit Auto Show, Sedan, Chrysler, Luxury

There's a Chrysler UK site with the moody, Twilight-esque image you see above called "CHANGE is coming...." It heralds the date of January 1, 2010, and since it has a picture of the Chrysler 300 we'd like to think there will be something new announced for the six-year-old sedan. Perhaps that high zoot dash teased at the New York Auto Show will greet us along with the new year. However, since we haven't seen anything of it or the car since, it could be something more generic.

Which would be a shame, because we have a long list of wishes for the 300, and we'd be thrilled to discover the Pentastar folks had worked through even a quarter of it. The Detroit Auto Show's press days begin on January 11, so we'll be keen for whatever preview Chrysler has coming. But we do wonder why the UK gets the announcement duties while Chrysler's U.S. site is silent. Regardless, stay tuned... Hat tip to Aaron

[Source: Chrysler UK]

Chrysler UK says "Change is coming" on New Year's Day originally appeared on Autoblog on Wed, 09 Dec 2009 08:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Autoblog Podcast #156

Dan Roth — Tue, 08 Dec 2009 16:40:00 EST

Filed under: LA Auto Show, Podcasts, Etc., Aston Martin, Audi, Chrysler, Dodge, Volkswagen

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Editor Chris Paukert has apparently been bitten by the podcasting bug, and he once again joins Shunk and Roth for Episode #156 of the Autoblog Podcast. We dive right in to reminiscence about the recently finished Los Angeles Auto Show. Moving on from there, we talk about Audi's new A7 Sportback and its extreme gorgeousness, as well as the new A8 and all its massive awesomeness. Speaking of awesomeness, Shunk thinks that the $199,950 Aston Martin Rapide is one very attractive four-place supercar. Going to the other end of the spectrum, rumors about Volkswagen's upcoming Jetta replacement gets some head scratches from us before we moved on to prognosticating about a unibody Dodge Dakota replacement. We wrap up a chewy hour-and-forty-five minutes by addressing some of your questions and calling it a night.

Don't forget to check out our colleagues at Joystiq and Engadget, and let us know what you think of our podcast by dropping us an email at Podcast at Autoblog dot com, reviewing the show in iTunes, filling out our survey, or even leaving us a voicemail on our Google Voice line 734-288-8POD (734-288-8763). Thanks for listening!

Continue reading Autoblog Podcast #156

Autoblog Podcast #156 originally appeared on Autoblog on Tue, 08 Dec 2009 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Chrysler still considering unibody Dakota replacement

Chris Shunk — Mon, 07 Dec 2009 14:30:00 EST

Filed under: Truck, Chrysler, Dodge

The Dodge Dakota -- as we know it today -- will go away in 2011, but looking at current sales of the mid-size pickup, it may as well be dead already. Chrysler has only sold 10,000 Dakotas this year, with an anemic 663 units cleared in November. But while the Dakota is selling poorly (it's not helped by being too close in price to the much more capable Ram), it doesn't necessarily mean that the enigmatic pickup won't live on in another form.

Coinciding with earlier reports, the Detroit News says Chrysler is contemplating a unibody Dakota to replace the current model. A more fuel efficient car-based platform could yield better efficiency, especially when paired with a turbocharged four cylinder with direct injection. The car-based truck probably wouldn't be a hauler but it would still have a functional bed similar to the Honda Ridgeline, and AWD would likely be an available option. Fred Diaz, the new head of the Ram brand, told the DN that the Pentastar is looking both at Fiat and from within its own stable of vehicles for any platforms that could help make the unibody Dakota a possibility, adding, "The emphasis is going to be on getting a vehicle that is still true to the Ram brand image and also gets excellent miles per gallon rating and at an attractive price point." Chrysler was reportedly already working on a unibody Dakota when money troubles forced the idea to the back burner.

While we like the idea of a fuel efficient pickup that can do most of the things that a body on frame truck can do, we're wondering if the truck-buying public will embrace the idea. The best example of a unibody pickup, the Honda Ridgeline, has been anything but a massive commercial hit and midsize trucks are already a dying breed, with only five percent of the overall vehicle market. But if Chrysler wants to make Ram its own brand, we're guessing that the Pentastar's truck company is going to need more than one vehicle.

[Source: Detroit News]

REPORT: Chrysler still considering unibody Dakota replacement originally appeared on Autoblog on Mon, 07 Dec 2009 14:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Honda to supplant Chrysler as America's 4th largest auto retailer

Chris Shunk — Mon, 07 Dec 2009 08:58:00 EST

Filed under: Car Buying, Chrysler, Honda

Throughout most of the history of the US auto industry, the Detroit Three sat atop of the sales charts with General Motors claiming first, Ford in second and Chrysler placing third. In the past few years Toyota has clawed its way past Chrysler and then Ford, and now it appears that Honda too has now passed the Pentastar. Barring some miraculous (and we mean truly outstanding) development, Honda will officially overcome Chrysler to become the fourth largest automaker in the States. Honda holds a rather insurmountable 200,000 unit cushion against its competition from Auburn Hills, MI -- more vehicles than any automaker sold during the month of November. Speaking of November, Chrysler was the only major automaker to see a sales decline, down 18.5 percent with a mere 65,000 units sold. Honda fared better with over 74,000 products sold.

While Honda's victory on the sales charts is indisputable, neither automaker is making a big deal about it. A Honda exec reportedly told Automotive News that it only worries about it internal sales numbers and doesn't focus on ranks. Chrysler spokeswoman Kathy Graham told AN that the company is on the right track to improve its standing, adding, "We are taking the steps that are necessary to have a good foundation and to build consumer confidence." Graham also said that the company is expecting better results in the future on account of its increased advertising spending. If Chrysler doesn't reverse its sales slide, the next automaker to pass team Pentastar could be Nissan -- the Japanese automaker finished only 7,000 units behind Chrysler in November.

[Source: Automotive News - sub. req'd]

REPORT: Honda to supplant Chrysler as America's 4th largest auto retailer originally appeared on Autoblog on Mon, 07 Dec 2009 08:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

VIDEO: Chrysler ad gets political, advocates for release of Myanmar Nobel Peace Prize Laureate

Jonny Lieberman — Fri, 04 Dec 2009 14:58:00 EST

Filed under: Videos, Chrysler, Celebrities

Chrysler 300 in political spot - click above to watch the video

This is... different. To summarize, a new commercial by Chrysler is agitating for the release of Aung San Suu Kyi, Myanmar's (a.k.a. Burma's) pro-democracy leader and lightning rod who has been under one form of house arrest or another for twenty years. The thirty-second spot was originally created to be part of sister-brand Lancia's sponsorship of the 10th World Summit of Nobel Peace Laureates. Says Oliver Francis, the new President and CEO of Chrysler and Managing Director of Lancia:

"We produced the TV film in honor of all those who put their lives at stake in the hopes of making the world a better place. In particular, those men and women who are still prisoners, like Aung San Suu Kyi. For Chrysler, this is a chance to use our brand image to join with others in the fight for peace and to knock down the walls that divide us. We at Chrysler believe in doing the right thing and making a difference."

The spot opens with a Chrysler 300 driving next to the some still-standing sections of the Berlin Wall. It then passes by a mural of Nobel Peace Prize winner Nelson Mandela. We then see three Nobel Laureates getting out of the back of 300s: Muhammed Yunus, founder of the micro-lending Grameen Bank in Bangladesh, Polish union leader and president Lech Walesa and former leader of the USSR Mikhail Gorbachev.

As to whether or not a car company should be advocating in favor of peace and democracy, all we'll say is we're glad Chrysler is not fighting against 'em. Be sure to check out the video and press release after the jump.

[Source: Chrysler]

Continue reading VIDEO: Chrysler ad gets political, advocates for release of Myanmar Nobel Peace Prize Laureate

VIDEO: Chrysler ad gets political, advocates for release of Myanmar Nobel Peace Prize Laureate originally appeared on Autoblog on Fri, 04 Dec 2009 14:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Fitch Ratings says U.S. auto industry headed for airline-style cyclical bankruptcies

Chris Shunk — Mon, 30 Nov 2009 08:29:00 EST

Filed under: Chrysler, Ford, GM

Remember this past spring and summer's super speedy General Motors and Chrysler bankruptcies? If the billions in government loans and White House strong-arming is starting to slip into the recesses of your memory, your mind will likely be refreshed sometime in the future, at least according to Fitch Ratings. Fitch says that high fixed costs, perpetual over capacity and weak sales will lead to more bankruptcies that will mirror the misery of the airline industry.

Fitch gives plenty of reasons that the auto industry is far from out of the woods, chief among them is the continuation of weak sales. The ratings agency predicts 2010 car sales will rise by 7.8% to 11.1 million units, an improvement that is still far shy of the industry's peak sales of 17 million units. Another chief concern is GM and Chrysler's inability to access the credit markets for the foreseeable future. Credit markets are tight enough already, and Fitch doesn't see any bank lining up to loan money to any company fresh out of bankruptcy and still in restructuring mode. And if suppliers don't become more healthy or if gas prices spike again, Fitch sees the potential for more stress and ultimately more bankruptcies. And the Detroit 3 still have to contend with a high dollar union workforce and retiree obligations. Of the Detroit automakers, Fitch unsurprisingly sees the most stability at Ford. The Blue Oval still has access to bank loans and Fitch feels it has the strongest product lineup as well.

While we certainly agree that the auto industry is anything but out of the woods, we're also a bit skeptical of Fitch Ratings' foggy crystal ball. After all, Fitch didn't foresee much of the banking collapse that brought this country to its largest recession in decades until the collapse was painfully obvious, giving AA ratings to banks like Lehman Bros. only one year before that financial institution's dive into Chapter 11 protection.

[Source: Reuters | Photo by David Goldman/Getty]

REPORT: Fitch Ratings says U.S. auto industry headed for airline-style cyclical bankruptcies originally appeared on Autoblog on Mon, 30 Nov 2009 08:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Chrysler piles on even more incentives ahead of the holidays

Chris Shunk — Mon, 23 Nov 2009 17:59:00 EST

Filed under: Car Buying, Marketing/Advertising, Chrysler, Dodge, Jeep

In an effort to spur lagging sales, Chrysler has reportedly cranked up incentive spending on nearly all of its models by $1,000 to $1,500 while also offering 0% financing on many of its models. Chrysler is also said to be offering lease incentives of $500 to $1,000 on minivan leases and financing deals on leftover 2008 and 2009 Dodge Vipers.

The move towards additional rebates comes as incentive spending has been down for crosstown rivals General Motors and Ford. And Chrysler was already spending more on incentives than the industry at large - Edmunds says the typical Chrysler, Dodge or Jeep sold had $3,219 on the hood versus an industry average of $2,486. Chrysler is in a tougher position than its Detroit contemporaries, because the Auburn Hills, MI-based automaker has seen its sales slide by 39% on the year - more than any other major player in the U.S. market. One thing Chrysler does have going for it is that dealer inventory is largely in check and Automotive News is reporting that 88% of its vehicles are 2010 models.

Chrysler's latest round of incentives is good now through January 4, 2010.

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

REPORT: Chrysler piles on even more incentives ahead of the holidays originally appeared on Autoblog on Mon, 23 Nov 2009 17:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Chrysler could lose up to 145 more dealers because they can't get financed

Jonathon Ramsey — Mon, 23 Nov 2009 10:30:00 EST

Filed under: Chrysler, Earnings/Financials

Chrysler's dealers haven't yet entered the portion of the game wherein they can catch a break. As if the dearth of inventory and lack of new vehicles weren't enough, nearly 150 dealers haven't been able to finalize floorplan financing. Since Chrysler Financial has exited that business, GMAC stepped in, but dealers are having a hard time meeting its terms: 85 have been turned down flat, another 60 or so are still working on it.

In some cases GMAC has asked for more collateral; in at least one other case, GMAC is looking for the dealer to alter the lending structure of his mortgages (not floorplan), held by Chrysler Financial. The former Pentastar piggy bank, again accused of trying to wind down its operations, said it "continues to cooperate" with all involved. If the rumored number of dealers does fall, it would take Chrysler's planned closures up to nearly 1,000, after the 789 announced earlier this year.

[Source: Bloomberg | Image: Mark Ralston/Getty]

REPORT: Chrysler could lose up to 145 more dealers because they can't get financed originally appeared on Autoblog on Mon, 23 Nov 2009 10:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Government reportedly encouraged by Fiat's plan for Chrysler, sees "huge sense of urgency"

Chris Shunk — Thu, 19 Nov 2009 08:58:00 EST

Filed under: Government/Legal, Chrysler, Fiat

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]

Government reportedly encouraged by Fiat's plan for Chrysler, sees "huge sense of urgency" originally appeared on Autoblog on Thu, 19 Nov 2009 08:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: January's Detroit Auto Show to be loaded up with political VIPs

Chris Shunk — Tue, 17 Nov 2009 15:58:00 EST

Filed under: Detroit Auto Show, Government/Legal, Chrysler, GM

After General Motors and Chrysler required a combined $80 billion in government assistance to keep their doors open, many speculated that Uncle Sam would want to keep a hand in the carmaking cookie jar. While it is debatable how much control (a lot) the White House and Congress have over the Detroit automakers, it certainly appears that our politicians have taken a keen interest in the nation's auto industry.

One sign that our government is keeping an eye on our investment is the overwhelming amount of interest Washington is reportedly taking in the 2010 North American International Auto Show. The Detroit Free Press is reporting that Congress, the Department of Transportation and other agencies are making so many requests for access to the press days of the show that special gray and silver government badges are being created just for them. NAIAS Chairman Doug Fox says more than twice the politicians and government agencies have requested to attend the show than last year, and we're guessing the queries will continue to pour in as the show draws nearer. There is also speculation that President Obama may himself attend the show, though the White House isn't likely to confirm or deny that until much closer to the actual event.

On one hand, it's nice to see that Washington has finally decided to pay attention to the auto industry, but we can't help but wonder what what the value add is of joining the scrum during press days. We're thinking most of the politicians and government officials can learn all they need to know about the show from Autoblog, save a few million dollars, and perhaps avoid some time in the frozen tundra that is Detroit in January.

[Source: Detroit Free Press | Image: Stan Honda/AFP/Getty]

REPORT: January's Detroit Auto Show to be loaded up with political VIPs originally appeared on Autoblog on Tue, 17 Nov 2009 15:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Senator John McCain doesn't believe Chrysler will make it

Jonny Lieberman — Mon, 16 Nov 2009 12:59:00 EST

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

It looks like everyone is thinking about Chrysler these days. First it was former DaimlerChrysler CEO (and current Daimler CEO) Dieter Zetsche offering advice to Fiat CEO Sergio Marchionne. Now it looks like former presidential contender and current Arizona Senator John McCain not only thinks that bailing out the ailing automaker was a bad idea (even though he supported bailing out Detroit during his 2008 presidential campaign), he thinks that Chrysler has no future. Here's a quote that comes via The Detroit News:

"It was all about the unions. The unions didn't want to have their very generous contracts renegotiated so we put $80 billion into both General Motors and Chrysler, and anybody believes that Chrysler is going to survive, I'd like to meet them."

While McCain's never been one for pulling punches, this may be one head butt over the top. Chrysler declined to comment on McCain's statements. Ironically, McCain made his comments while serving as grand marshal of a NASCAR event at the Phoenix International Raceway as Dodge announced its new Nationwide Series Challenger racer.

[Source: Detroit News | Photo by Christian Petersen/Getty]

REPORT: Senator John McCain doesn't believe Chrysler will make it originally appeared on Autoblog on Mon, 16 Nov 2009 12:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Daimler CEO Dieter Zetsche dishes out advice for Chrysler

Jonny Lieberman — Sun, 15 Nov 2009 08:46:00 EST

Filed under: Car Buying, Chrysler, Dodge, Jeep, Mercedes-Benz, Fiat

It's said that certain cultures don't handle the concept of irony well. You know, irony - where the intended answer is the opposite of the actual answer. Case in point: Back when cab forward cars were all the rage and the once mighty Plymouth brand was put out to pasture, Chrysler looked as if it had a fighting chance at remaining solidly within the Big 3. The Dodge Ram was a gauntlet thrown, the V10 Viper had sports car fans atwitter and the Dodge Intrepid really was a smart, good looking car.

Chrysler, meet Daimler, your new "equal." And by equal we mean Daimler gets the all the profits and you get cast off, last-generation Mercedes platforms on which to underpin your new cars. In the case of the 300C/Charger/Magnum, this particular strategy worked, for a couple of years at least. In the case of the Crossfire, not even a little bit. And then under Daimler's watch - and specifically under the eyes of Dieter Zetsche, a.k.a. Dr. Z - Chrysler was piledriven through the mat. Have you driven a Dodge Journey lately?

Here's the irony - Dr. Z is handing out unsolicited advice to Fiat's Sergio Marchionne vis-a-vis Chrysler - and we just can't help but laugh. Zetsche claims, "I continue to be emotional about this company and am crossing my fingers for the very best future." And while we're 51% sure he's being sincere, where was that emotion when he green lit the Jeep Compass? Or the Chrysler Sebring? Or the Dodge Caliber? All cars that led directly to the bankruptcy of Chrysler. We could go on, but you get the idea. Our advice to Sergio? Do the opposite of whatever Zetsche is telling you.

[Source: USA Today | Source photo by TORSTEN SILZ/AFP/Getty Images]

Daimler CEO Dieter Zetsche dishes out advice for Chrysler originally appeared on Autoblog on Sun, 15 Nov 2009 08:46:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Chrysler disbands ENVI group, EV development will continue

Jeremy Korzeniewski — Mon, 09 Nov 2009 09:59:00 EST

Filed under: Chrysler, Electric

Dodge Circuit - Click above for high-res image gallery

According to a report from Reuters, Chrysler has disbanded its ENVI program and integrated the group back into its normal product development organization. Former ENVI head Lou Rhodes will now take the title of group line executive in charge of electric vehicle development and will manage that group for both Chrysler and Fiat. Though we weren't exactly expecting this change, the move isn't entirely surprising.

At this point, we don't yet know what this reorganization means for the electric vehicles that Chrysler had previously promised to put into production, the first of which was to be the Lotus-based Dodge Circuit that was hopefully supposed to be on the market by late 2010.

Fiat CEO and newly-appointed head of Chrysler Sergio Marchionne said earlier this week during Chrysler's painfully long new product plan presentation that electric vehicles are still a very tough proposition with current battery technology. In fact, the automaker expects that less than two percent of its lineup will be electric by 2014, which would amount to fewer than 60,000 vehicles per year.

Gallery: Dodge Circuit EV

[Source: Reuters]

REPORT: Chrysler disbands ENVI group, EV development will continue originally appeared on Autoblog on Mon, 09 Nov 2009 09:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Autoline on Autoblog with John McElroy

John McElroy — Fri, 06 Nov 2009 19:00:00 EST

Filed under: Truck, Work, Chrysler, Autoline on Autoblog

CHRYSLER CONSIDERS GETTING BACK INTO BIG RIGS

One of the more intriguing tidbits that dribbled out of Chrysler's grueling 8-hour press conference on Wednesday is that the company is considering getting back into the heavy truck business. They're not talking about heavy duty pick-ups, they're talking about 18-wheelers.

Up until the early 1970's Dodge sold heavy trucks, including semi-tractors. In fact, Dodge trucks were famous the world over. But like GM and Ford, the Chrysler Corporation decided to get out of that business at a time when the commercial truck sector was under pressure.

When times are good heavy trucks generate a significant amount of profits. Mercedes-Benz, Volkswagen, Renault, Toyota (Hino), Nissan and Mitsubishi (Fuso) are still in the business. But it takes a lot of capital investment to get into and stay in the highly cyclical heavy truck segment, which is why the American car companies abandoned that market years ago.

In this case, the idea to get Chrysler back into the heavy truck market is Fiat's, not Chrysler's. And that is precisely why this could actually happen.

____________________________________________________________________________________

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.
____________________________________________________________________________________

Continue reading Autoline on Autoblog with John McElroy

Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 06 Nov 2009 19:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Chrysler's 335-slide PowerPoint presentation and the weird stuff therein

John Neff — Thu, 05 Nov 2009 20:29:00 EST

Filed under: Chrysler, Humor

Chrysler 5-year business plan... all of it - Click above to view gallery

So you're not an automotive journalist and couldn't spend seven hours (!) following along yesterday as Chrysler execs presented their 5-year business plan for the company. What you missed was a bladder-busting 335-slide PowerPoint presentation that we won't soon forget. Fear not, as we've obtained the entire presentation and uploaded into a gallery. Every slide is there, including some curious ones that deserve pointing out.

Slide #14: The crucial demographic that Dodge is targeting to increase sales: moms with tat sleeves.
Slide #32: Is this the next-gen Dodge Charger or just the Charger R/T Concept?
Slide #38: Look familiar? It does to us! Chrysler swiped a photo of the Dodge ACR shot by our own Drew Phillips (see original here).
Slide #144: Did you know? The word "Jeep" is used to help kids learn how to write the letter J, as is every other word with a J in it.
Slide #291: A brochure for the 2010 Chrysler 300 that shows a mystery grille. We've seen the brochure's contents, which instead show the model currently on sale.
Slide #303: The speaker onstage said the Viper would return in 2012, the slide says it's under consideration.

Now it's your turn. Let us know if you find anything strange, wrong or worth pointing out in the comments below.

Gallery: Chrysler's 5-Year Business Plan

Chrysler's 335-slide PowerPoint presentation and the weird stuff therein originally appeared on Autoblog on Thu, 05 Nov 2009 20:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Chrysler's 5-Year Business Plan: The Product Breakdown

John Neff — Wed, 04 Nov 2009 23:00:00 EST

Filed under: Chrysler, Dodge, Jeep, Fiat

Chrysler LLC has concluded its 7-hour-long marathon presentation of the business plan (read our Live Blog of the event here) that will see it through the next five years, and what we're left with is a little confusing. It's almost as if the automaker's new executives, amidst apologizing for the company's past and promising to do better in the future, were hoping we'd all fall asleep or get lost in the details. Well, we didn't fall asleep or get lost, and below you'll find a breakdown of what we learned while spending the day hip deep in Chrysler's future product. You can also check out the slides from Chrysler's presentation relating to product in the gallery below.

Models On Their Way Out

Jeep Patriot (end of 2012)
Jeep Compass (end of 2012)
Jeep Commander (end of 2010, may continue being sold internationally)
Chrysler PT Cruiser (end of 2010)
Dodge Dakota (mid 2011)
Dodge Caliber (mid 2012)
Dodge Viper (mid 2011, may return in 2012)

New Models That Are Coming

Jeep compact SUV (2013, supplied by Fiat, may be Panda)
Jeep small CUV (2013, supplied by Fiat, replaces Patriot and Compass)
Jeep Liberty (2013, replaced by Fiat product but retains name)
Chrysler small car (2013, supplied by Fiat)
Chrysler compact sedan (2012, supplied by Fiat, replaces PT Cruiser)
Chrysler Sebring (2013, replaced by Fiat product but retains name)
Chrysler midsize CUV (2013, supplied by Fiat)
Ram midsize unibody pickup (under consideration for 2011)
Ram large and small commercial van (2012, supplied by Fiat)
Dodge small car (2013, supplied by Fiat)
Dodge compact sedan (2012, supplied by Fiat)
Dodge Avenger (major update 2010, replaced by Fiat product 2013)
Dodge full-size CUV (2010)
Fiat 500 (late 2010, convertible 2011, Abarth 2012)

Models Staying, Receiving Attention

Jeep Wrangler Diesel (2010/2011, not confirmed for U.S. market... yet)
Jeep Grand Cherokee (all-new 2010)
Chrysler 300C (all-new 2010)
Chrysler Town & Country (major update 2010, next-gen 2014)
Ram 1500/2500/3500 (major update 2012)
Dodge Journey (major update 2010)
Dodge Nitro (major update 2011 under consideration)
Dodge Challenger (refresh 2011)
Dodge Charger (all-new 2010)
Dodge Grand Caravan (major update 2010, next-gen 2014)

UPDATE: You can dive whole hog into the plan yourself at Chrysler's website.

View Poll

Gallery: Chrysler LLC 5-year Businnes Plan for Products

Chrysler's 5-Year Business Plan: The Product Breakdown originally appeared on Autoblog on Wed, 04 Nov 2009 23:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments