Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[REPORT: Chrysler to make Ram its own brand]]>http://www.autoblog.com/2009/09/24/report-chrysler-to-make-ram-its-own-brand/http://www.autoblog.com/2009/09/24/report-chrysler-to-make-ram-its-own-brand/http://www.autoblog.com/2009/09/24/report-chrysler-to-make-ram-its-own-brand/#commentsFiled under: , , , , , , , , ,



When a report came out earlier this week regarding Fiat's intentions for Chrysler (making it a Cadillac competitor), Dodge (focusing on driving dynamics) and Jeep (being, well, Jeep), one semi-iconic nameplate was left out of the discussion: Ram.

Toiling away under the Dodge brand, the Ram moniker has been reserved for Chrysler Co.'s truck offerings. However, a new initiative could promote the Ram as a standalone brand, focusing exclusively on vans, SUVs, commercial vehicles, and, of course, pickups. That would free Dodge from rough-and-tumble heavy-duty products, leaving it to fend for itself in the compact, mid-size and performance segments - although it's destined to receive some help from Alfa Romeo in the form of joint product development.

Unfortunately for Europe, Dodge - which was just recently introduced across the pond in 2006 - won't benefit from the reworked branding and products. According to InsideLine, Chrysler Group's European arm is likely to drop Dodge abroad in the future. So get your Avenger, Caliber, Journey or Nitro while you can... if you must.

[Source: InsideLine]

REPORT: Chrysler to make Ram its own brand originally appeared on Autoblog on Thu, 24 Sep 2009 18:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerchrysler groupchrysler spinoff ramChryslerGroupChryslerSpinoffRamdodgejeepramram brandRamBrandThu, 24 Sep 2009 18:26:00 EST<![CDATA[Chrysler fills out board of directors]]>http://www.autoblog.com/2009/07/06/chrysler-settles-on-board-of-directors/http://www.autoblog.com/2009/07/06/chrysler-settles-on-board-of-directors/http://www.autoblog.com/2009/07/06/chrysler-settles-on-board-of-directors/#commentsFiled under: , ,



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]

Continue reading Chrysler fills out board of directors

Chrysler fills out board of directors originally appeared on Autoblog on Mon, 06 Jul 2009 08:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Alfredo AltavillAlfredoAltavillboard of directorsBoardOfDirectorschryslerchrysler groupChryslerGroupdodgejeepllcsergio marchionneSergioMarchionneMon, 06 Jul 2009 08:29:00 EST<![CDATA[Chrysler pondering whether Sebring/Avenger replacements should go rear-wheel drive?]]>http://www.autoblog.com/2009/06/22/report-chrysler-pondering-whether-sebring-avenger-replacements/http://www.autoblog.com/2009/06/22/report-chrysler-pondering-whether-sebring-avenger-replacements/http://www.autoblog.com/2009/06/22/report-chrysler-pondering-whether-sebring-avenger-replacements/#commentsFiled under: , , , ,


Chrysler 200C concept car - click above for high-res image gallery

Setting the Challenger and 300 aside, what Chrysler needs now most of all is a C/D segment car that moves more metal than the pitiful performance of its current offerings. According to Automotive News, Chrysler shifted just 133,626 of its Sebring and Dodge Avenger platform-mates, a number that pales in comparison to class leaders like the Toyota Camry (436,617) and Honda Accord (372,789). The constant clamor to put the 200C concept into production in some form has got Chrysler looking for ways to make that car a reality, but finding a platform that will play on Main Street is a thorny little chestnut.

Replacing the universally jeered Sebring and Dodge Avenger (and their Mitsubishi platform) by going rear-wheel drive is a possibility. The 200C show car sat on a shortened version of the LX platform, in theory inviting both rear-wheel and all-wheel drive configurations. Fiat's D-Evo platform, debuting with the replacement for Alfa Romeo's 159, is another possibility, but there are concerns it may not be flexible enough to grow to the size the 200C needs. Fiat's bid for General Motors' Opel unit brought with it speculation that the 200C could snag the Epsilon platform, but that's since fallen off the radar.

While a rear-drive Chrysler midsizer sporting the sharp exterior and interior design of the 200C and priced like a Fusion would be something distinctive, the sales case for such a departure from the class-norm of FWD remains yet to be convincingly argued. Tuned properly, such a vehicle could give much higher-zoot iron a run for its money, and performance enthusiasts likely would embrace such a model; though they may not actually buy one. Chrysler needs to close sales, not set internet chatrooms abuzz, so regardless of how it comes to market, the 200C must be more fully realized than the current Chrysler midsizers.


Gallery: Chrysler 200C Concept


[Source: Automotive News (subs req)]

Chrysler pondering whether Sebring/Avenger replacements should go rear-wheel drive? originally appeared on Autoblog on Mon, 22 Jun 2009 11:00:00 EST. Please see our terms for use of feeds.

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Joseph Heller's novel Catch-22 is an assault on bureaucratic circular logic, and when talk turns to Chrysler's bankruptcy, you can almost picture the book's character, Yossarian, shaking his head about the latest developments surrounding warranty claims. Current Chrysler owners might find themselves owning vehicular orphans whether or not the company manages to stick around in some form. Chrysler's bankruptcy deal, where there's an upside and a downside to the Schwartz, could see the new, "Good" Chrysler floating above any responsibility for any Chrysler vehicle sold before the bankruptcy.

Consumers groups, realizing that buyers will have no recourse, have filed an objection that's spurred a quickly organized hearing of the House Judiciary Committee. According to a report by ABC<, the new Chrysler has agreed to cover normal warranty claims, but when some new issue that would normally prompt a recall campaign pops up - or some other kind of defect rears its ugly head - the company would want nothing to do with it. Bad thingamajigy covered, horrible manufacturing or design defect that causes you injury, not covered. No right to sue, either.

It's not like Chrysler vehicles have stellar resale values now, but if this is how things shake out, the machinations to avoid standing behind its product are likely to further devalue anything wearing a Pentastar.

[Source: ABC]

Consumer group objects to Chrysler bankruptcy, says customers could be stranded without warranty originally appeared on Autoblog on Thu, 21 May 2009 18:29:00 EST. Please see our terms for use of feeds.

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As you'd imagine, it's pretty tough to run a successful auto company if there's no viable product in the pipeline. Chrysler has seen its fair share of negative press for not announcing a clear strategy to rebuild the heart of its line-up, namely the Chrysler Sebring and the Dodge Avenger, and it's unclear how much life the aging 300C and Charger platform has in it. According to Chrysler's product development chief, Frank Klegon, though, there's nothing to worry about... assuming that the Feds pull through and "show them the money" they need for future development. If Detroit's number 3 automaker doesn't get the cash? Don't ask.

Klegon also says that Project D is still moving along, though no actual decisions have yet been made as to whether 1) a completely new platform is needed, 2) the old one will be modified or 3) another firm's mid-sizer will be cribbed for the next Chrysler Sebring and Dodge Avenger. Despite rumors of its apparent demise, Klegon reiterated that the Phoenix project to develop next-gen V6 engines is well into the testing phase. Chrysler needs to knock all of these plans out of the park in order to remain competitive.

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

Chrysler hasn't killed future product plans... yet originally appeared on Autoblog on Mon, 01 Dec 2008 16:28:00 EST. Please see our terms for use of feeds.

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The automotive sales sector is in a major state of flux as consumers continue to run from SUVs and pickup trucks into smaller, more fuel efficient cars. One manufacturer hit especially hard by this transition is Chrysler, a company that recently posted the worst fleet average fuel economy numbers of all major automakers in the U.S. due to its truck-heavy lineup. Still, the automaker has built up a large supply of Chrysler, Dodge and Jeep utility vehicles that they have got to get off dealer lots somehow. To ease consumers into the fuel-thirsy utes, Chrysler has introduced new incentives of zero-percent financing for 72 months on the 2008 Dodge Durango, Chrysler Aspen and Jeep Grand Cherokee and Commander.

While the lack of any financing charges will certainly impact the bottom line, it is nothing compared to the losses the automaker has been hit with over its past lease deals. In fact, truck and SUV residuals are so bad these days that Chrysler Financial has gone so far as to completely cut leasing out of its available portfolio starting August 1. The financing deals announced today are scheduled to continue through Thursday, July 31.

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

Chrysler offering even more incentives to close out July originally appeared on Autoblog on Fri, 25 Jul 2008 16:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerchrysler aspenchrysler financialchrysler groupchrysler incentivechrysler incentiveschrysler leasechrysler llcChryslerAspenChryslerFinancialChryslerGroupChryslerIncentiveChryslerIncentivesChryslerLeaseChryslerLlcdodge durangoDodgeDurangojeep commanderjeep grand cherokeeJeepCommanderJeepGrandCherokeeFri, 25 Jul 2008 16:59:00 EST<![CDATA[Wolfgang Bernhard to become chairman of Chrysler Group]]>http://www.autoblog.com/2007/07/26/wolfgang-bernhard-to-become-chairman-of-chrysler-group/http://www.autoblog.com/2007/07/26/wolfgang-bernhard-to-become-chairman-of-chrysler-group/http://www.autoblog.com/2007/07/26/wolfgang-bernhard-to-become-chairman-of-chrysler-group/#commentsFiled under: , ,



According to a German magazine referenced by Automotive News, Wolfgang Bernhard is expected to be announced as the Chrysler Group's chairman-in-waiting, pending DaimlerChrysler's sale of the automaker to Cerberus Capital Management. Currently Bernhard is an acting advisor, a consultant if you will, for Cerberus, and spends his days at Chrysler's Auburn Hills headquarters, presumably gathering info for Cerberus on what aspects of the business need the German exec's magic touch the most. When the sale happens and Bernhard officially moves in, the speculation is that current CEO Tom LaSorda will remain in his position and likely report to Bernhard.

Bernhard was formerly VW's brand chief, and before that he worked for Chrysler immediately following the "merger of equals" that resulted in DaimlerChrysler. Other former Chrysler execs are also advising Cerberus at the moment according to Automotive News, including the company's well respected former design chief Tom Gale. Hopefully the news of Bernhard's official return, when it comes, will portend the return of other key Chrysler execs that can aid the company's turnaround efforts.

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

Wolfgang Bernhard to become chairman of Chrysler Group originally appeared on Autoblog on Thu, 26 Jul 2007 12:38:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bernhardcerberuscerberus capital managementCerberusCapitalManagementchairmanchryslerchrysler groupChryslerGroupdaimlerchryslerexpire-images:2008-7-25tom galetom lasordaTomGaleTomLasordawolfgangwolfgang bernhardWolfgangBernhardThu, 26 Jul 2007 12:38:00 EST<![CDATA[UAW head says Chrysler needs concessions from union]]>http://www.autoblog.com/2007/06/19/uaw-head-says-chrysler-needs-concessions-from-union/http://www.autoblog.com/2007/06/19/uaw-head-says-chrysler-needs-concessions-from-union/http://www.autoblog.com/2007/06/19/uaw-head-says-chrysler-needs-concessions-from-union/#commentsFiled under: ,

Two years ago, the UAW gave some health care concessions to struggling GM and Ford in an effort to help the Detroit giants save billions of dollars and stay afloat. At the time, Chrysler was relatively well-off and so the union rejected a similar package for them. UAW President Ron Gettelfinger says that it's time to make up for that omission. Since 2005, the Chrysler Group went from a profit of $1.8 billion, to a loss of $618 million last year, and on to a $1.98 billion loss so far this year. Gettelfinger said a review of Chrysler's finances shows there's a problem that needs to be addressed, so talks are ongoing.

More after the jump.

[Source: Detroit Free Press]

Continue reading UAW head says Chrysler needs concessions from union

UAW head says Chrysler needs concessions from union originally appeared on Autoblog on Tue, 19 Jun 2007 13:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CerberusChrysler GroupChryslerGroupDaimlerChryslerhealthcare costsHealthcareCostsRon GettelfingerRonGettelfingerUAWTue, 19 Jun 2007 13:29:00 EST<![CDATA[April showers could bring May sale of Chrysler]]>http://www.autoblog.com/2007/04/21/april-showers-could-bring-may-sale-of-chrysler/http://www.autoblog.com/2007/04/21/april-showers-could-bring-may-sale-of-chrysler/http://www.autoblog.com/2007/04/21/april-showers-could-bring-may-sale-of-chrysler/#commentsFiled under: , ,

Last week we told you that DaimlerChrysler's Rüdiger Grube was heading to New York to visit with potential suitors for the Chrysler Group. And it appears he was a man on a mission. It seems that a close source has told news outlets that a sale could be wrapped up by as early as May. Although talks are ongoing and nothing is definite, it looks like at least one of the bidders has met the company's expectations in principle. Those bidders included Blackstone Group, Centerbridge Capital Partners LP and Cerberus Capital Management LP, as well as Canadian auto-parts supplier Magna International Inc. and private-equity firm Ripplewood Holdings Inc. After initial meetings, the final three appeared to be Cerberus, Blackstone and Magna.

Deals like this don't happen overnight, however, so even if a bidder has been chosen, it will take some time to dot the i's and cross the t's. And one slightly sticky point may remain. Workers' reps on the Chrysler supervisory board have reportedly been okay with a sale "as long as the buyer agrees to protect as many jobs as possible." That's a bit different than what UAW head, Ron Gettelfinger, said a couple of days ago. His words were a bit less supportive. Something closer to sale or no sale, UAW jobs were the most important thing. He also suggested he had the support of the supervisory board, of which he is a member. Equity partnership possibilities are also a potential stumbling block still. Since Kirk Kerkorian first brought that issue into the spotlight, other bidders have incorporated it into their proposals.

But billionaire Kerkorian's $4.5 billion bid is apparently still getting snubbed as well. Gettelfinger, who said he has met the bidders, said the UAW would reject any bid from so-called "strip-and-flip" investors. That seemed a thinly veiled slap at interested leveraged-buyout firms. The primary concern for the union is preserving jobs, which also explains why GM didn't ever have a real chance, according to sources. Of course, with a $1.5 billion loss last year, Chrysler still plans to cut 13,000 jobs in hopes of returning to profitability by 2008.

[Source: Automotive News, sub req]

April showers could bring May sale of Chrysler originally appeared on Autoblog on Sat, 21 Apr 2007 07:27:00 EST. Please see our terms for use of feeds.

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The Detroit News is reporting that a group of 25 Chrysler employees in Toledo have formed a group called the "Employee Buyout Committee" and are actively exploring the necessary steps required to see the fate of Chrysler end up in the hands of its employees. Their proposal would give Chrysler employees a 70% stake in the automaker, with DaimlerChrysler retaining the remaining 30%. The group appears to be making all the right moves so far, having submitted its proposal first to the UAW, whose legal department is now evaluating the proposition. The employee buyout plan was also mentioned at DaimlerChrysler's annual shareholder meeting in Berlin on April, 4. The committee's apparent spokesperson, Michele Mauder, has also sent the proposal to Chrysler Gropu CEO and DaimlerChrysler CEO Deiter Zetsch, humbly requesting the employee's bid at least be given equal consideration with bids from private equity firms like Cerberus Capital Management and Blackstone Group, as well as Canadian parts supplier Magna. A Chrysler spokesperson has also commented that the proposal is expected to be reviewed by the automaker's legal department.

If allowing Chrysler's own 50,000 UAW employees to own the automaker doesn't happen, the UAW has expressed that it would much rather thow its hat in the ring with Canadian parts supplier Magna than any of the private equity firms that have offers on the table. While the employee buyout plan is a long shot, and if successful, an incredible risk for the employees, it's also inspiring that a group of workers would be the masters of their own fate. Unfortunately, it's not yet known how much the employees could offer for a 70% stake in their employer, which, in the end, is likely DaimlerChrysler's number one consideration in this sale.

[Source: The Detroit News]

Chrysler workers making long shot bid to buy automaker originally appeared on Autoblog on Fri, 20 Apr 2007 14:35:00 EST. Please see our terms for use of feeds.

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Looks like fears of a possible sale aren't scaring the product planners at Chrysler. Recognizing that the show must go on, the group announced a plan to build $1.78 billion worth of capacity over the next few years. According to this Automotive News piece, a new $730 million engine plant is a big part of that plan. The plant will be built in Trenton, Mich. and will concentrate on the production of the automaker's new range of fuel-efficient V-6 "Phoenix" engines. Also in the works are a new $700 million axle plant in Marysville, Mich., and a $300 million investment in the paint shop at their Sterling Heights, Mich. assembly plant.

Chrysler had actually announced many of these upgrades in February, when they pledged about $3 billion to build and revamp plants for the new engines, and the new investments don't change the fact that Chrysler is still planning to cut 13,000 jobs in their overall plan to return to profitability by 2008. New fuel-efficient engines and a renewed focus on cars is hoped to be the solution for record losses due to lower demand for the company's trucks and SUVs. Everybody loves the Hemi, but it ain't exactly a gas-sipper. As part of the new announcement, The Michigan Economic Development Corp. (a state agency) said Chrysler would be getting $11.2 million in tax concessions over the next eight years.

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

Chrysler spending $1.78bil on new Michigan plants originally appeared on Autoblog on Wed, 18 Apr 2007 14:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>assembly plantAssemblyPlantChrysler GroupChryslerGroupMichigan plantMichiganPlantThe Michigan Economic Development CorpTheMichiganEconomicDevelopmentCorpWed, 18 Apr 2007 14:26:00 EST<![CDATA[Shareholders call for DaimlerChrysler to be renamed Daimler-Benz AG]]>http://www.autoblog.com/2007/03/14/shareholders-call-for-daimlerchrysler-to-be-renamed-daimler-benz/http://www.autoblog.com/2007/03/14/shareholders-call-for-daimlerchrysler-to-be-renamed-daimler-benz/http://www.autoblog.com/2007/03/14/shareholders-call-for-daimlerchrysler-to-be-renamed-daimler-benz/#commentsFiled under: , ,



In an article that sums up nicely the current situtation surrounding the potential sale of Chrysler, the Detroit Free Press reveals that two DaimlerChrysler shareholders have called for the company to change its name by dropping "Chrysler" if the Chrysler Group isn't sold by March 31st, 2008. Shareholders Ekkehard Wenger and Leonhard Knoll have crafted a name change proposal that would insert the potential name change into the company's articles of incorporation at its next annual meeting on April 4th. Wenger and Knoll didn't hold back any punches in the proposal when speaking about the Chrysler Group and the perceived failure of this merger of equals:
  • "Maintaining a corporate name that evokes associations with the failure of the business combination with Chrysler is detrimental to the image of the corporation and its products."
  • "This is all the more true as unflattering nicknames such as Doting Daimler, Daimler-Crisis or even Crime-ler have long been in circulation."
  • "The disadvantages this entails for shareholders, customers and employees can only be borne at most for a short transition period until there is a proper separation from Chrysler. If a proper separation cannot be effected within one year, this would only serve to underscore the need to remove this affliction on the image from the corporation's name."
What does it say about the state of solidarity within your company when you have one half being referred to as an "affliction"? Not much. And while we don't read business trade journals in German over breakfast, we've never heard DCX referred to as "Daimler-Crisis" or any of the other nicknames mentioned in the proposal. Of course, now that we have, we'll have to start using them.

The Freep article closes by noting that DCX supervisory and management boards are totally opposed to the namge change, so don't expect them to be ordering new business cards anytime soon.

[Source: Detroit Free Press]

Shareholders call for DaimlerChrysler to be renamed Daimler-Benz AG originally appeared on Autoblog on Wed, 14 Mar 2007 16:02:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>chrysler groupChryslerGroupdaimler-crisisdaimlerchryslername changeNameChangeWed, 14 Mar 2007 16:02:00 EST<![CDATA[PETA goes after Chrysler Group for Iditarod connection]]>http://www.autoblog.com/2007/03/02/peta-goes-after-chrysler-group-for-iditarod-connection/http://www.autoblog.com/2007/03/02/peta-goes-after-chrysler-group-for-iditarod-connection/http://www.autoblog.com/2007/03/02/peta-goes-after-chrysler-group-for-iditarod-connection/#commentsFiled under: , , ,



Another action group has set its sights on the auto industry, this time its People for the Ethical Treatment of Animals. PETA has the Chrysler Group in its crosshairs for a loose connection it maintains with the annual Iditarod Trail Sled Dog Race held in Alask, which officially starts this Sunday. Clearly PETA has a problem with using sled dogs as an engine for ground-based transportation over snow. We get that. What we don't get is why the organization is attacking the Chrysler Group.

Automotive News reports that Dodge actually sponsored the Iditarod for three years in the early '90s. Dodge backed off, however, in 1993 when Alaska's Dodge dealers group took over primary sponsorship of the event. The dealers dropped the sponsorship in 2003, and ever since Ron Udd, owner of Anchorage Chrysler-Dodge (a single dealership) has paid $300,000 a year to be the official sponsor.

PETA claims on its website that DaimlerChrysler is a sponsor of the 2007 Iditarod, which obviously is not the case, and invites its members to contact who it refers to as "DaimlerChrysler Corporation CEO" Tom LaSorda (Uh, that would be Dieter Zetsche, did you mean to say Chrysler Group CEO?). The organization conveniently has a page set up with a letter all written, all you have to do is type in your name and hit send. When did protestors get so lazy?

Regardless of your feelings towards the plight of sled dogs, PETA could at least put in the leg work to get its facts straight before it aims its gun of righteousness at the wrong target.

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

PETA goes after Chrysler Group for Iditarod connection originally appeared on Autoblog on Fri, 02 Mar 2007 18:29:00 EST. Please see our terms for use of feeds.

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According to the Financial Times, General Motors has actually created a group to explore a potential purchase, alliance or other relationship with the Chrysler Group. Rumors have continued to persist that General Motors is interested in outright purchasing the Chrysler Group from DaimlerChrysler, but the fact that this exploratory group is headed by the same guy, Fritz Henderson (shown), who led the team that studied and eventually recommended against a possible tie-up with Nissan/Renault, adds more fuel to the fire. Of course, GM is still sticking to its original comment on the situation, which is that it regularly has discussions with other automakers on topics of mutual interest.

So far Hyundai, Volkswagen, Fiat and Nissan/Renault have ruled themselves out as potential buyers for the Chrysler Group, though reports have surfaced that at least four private equity groups are in preliminary talks with DCX concering a possible purchase deal. DaimlerChrysler CEO Dieter Zetsche has been quoted as saying that "all options are on the table." Just like it was with the exploratory group set up to study the Nissan/Renault deal, it will be months before Fritz and the gang will be able to provide a recommendation to GM.

[Source: Just-Auto - sub. req'd]

GM assembles group to explore relationship with Chrysler originally appeared on Autoblog on Fri, 23 Feb 2007 16:33:00 EST. Please see our terms for use of feeds.

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This afternoon Chrysler revealed more details on one part of its plan to extensively reduce its workforce by 13,000 workers between now and 2009. The details today concern the 2,000 salaried workers that will be leaving the company. Chrysler hopes it can entice at least 1,000 of those salaried workers to leave by June 30th of this year.

There are two deals on the table, one for those workers age 53 to 61 and the other for those 62 and older. At least 10 years of employment with the company is required to be eligible for either group. The yungins are being offered what's called the Separation Incentive Program, which is basically an early retirement package that waives any retirement benefit reductions that would have been incurred under normal circumstances. It appears those eligible for this group will also get 100% of their health care plan's medical credits. For those 62 and up that meet the requirements, there's the Special Early Retirement package that offers three months salary and either a $20,000 car voucher "grossed up for taxes" (I believe that means it's $20,000 after taxes) or a $20,000 contribution to their Retirment Health Account. This group would also receive 100% of their health care plan's medical credits.

Neither of these plans affect the many union workers under Chrysler Group employ. Details of those attrition offers are still being finalized.

[Source: Chrysler]

Continue reading BREAKING: Chrysler reveals details on white-collar "separation packages"

BREAKING: Chrysler reveals details on white-collar "separation packages" originally appeared on Autoblog on Fri, 23 Feb 2007 15:28:00 EST. Please see our terms for use of feeds.

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When asked about the possible GM/Chrysler buyout deal, Ron Gettelfinger, the head of the United Auto Workers Union said, "I have absolutely no opinion on that at all." Really?! No opinion?! No comment, we could understand. But no OPINION? This could be one of the most significant moves in the future of your organization and the U.S. auto industry in general. And you have no opinion? That seems odd to say the least. In his defense, perhaps Gettelfinger just didn't have the desire to SHARE his opinion, especially not during an interview on Detroit radio station WJR.

The UAW, and its position on a possible acquisition of the Chrysler group by GM has been widely cited as a major roadblock in the process. Besides being the head of the UAW, Gettelfinger also has a seat on the supervisory board of DaimlerChrysler. He did say that rumors of the possible sale surprised the hourly workers who were just expecting to hear details of Chrysler's cost-cutting plan.

Gettelfinger also addressed Ford wanting special concessions in its upcoming summer contract talks by saying, "They just went through this huge financing. They've got a ton of cash. They've got great leadership at the top of that company," "They've made some tough decisions but so have we. That company is in great shape." We're not sure what websites Mr. Gettelfinger is reading, but we've yet to find one describing Ford as being in "great shape".

[Source: Automotive News, sub req]

UAW has no opinion on possible GM/Chrysler deal originally appeared on Autoblog on Wed, 21 Feb 2007 12:27:00 EST. Please see our terms for use of feeds.

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Automotive News has filed yet another report that insists DaimlerChrysler is in talks with General Motors about the latter purchasing the Chrysler Group. This time the trade pub claims that sources from Germany, where the rumor originated, and the United States have confirmed that GM is interested in picking up the struggling U.S. division of DCX. The New York Times has already confirmed from inside sources that the two companies are talking, but the topic of conversation is sharing the GMT900 full-size SUV platform.

We've already talked about why GM purchasing the Chrysler Group would be the biggest bone-head move of all time. To recap, the two automakers have many products that compete directly with each other, the Chrysler Group's product portfolio is farther behind GM's with less to be optimistic about in the pipeline, the last thing GM needs is more production capacity in the U.S., and absorbing legacy costs and additional UAW workers would be a nightmare. As a point of fact, automakers talk to each other all the time. It's time media outlets quit screaming "Buy out!" every time Rick Wagoner says hello to someone.

[Source: Automotive News]

Automotive News insists GM and DCX talking buyout originally appeared on Autoblog on Fri, 16 Feb 2007 15:55:00 EST. Please see our terms for use of feeds.

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Project X has now officially been renamed the Recovery and Transformation plan by the Chrysler Group, which plans to reduce its workforce by 13,000 people between now and 2009. About 11,000 employees will be hourly workers, while 2,000 will be salaried employees. In addition, total production capacity for the Chrysler Group will be reduced by 400,000 units per year, aided by the immediate elimination of shifts at its Newark Assembly Plant and Warren Truck Plant, along with cancelling a shift at its St. Louis South Assembly Plant in 2008. In 2009, the Newark Assembly Plant will be completely idled. There's also the standard restructuring moves you'd expect in the plan, like reducing the number of dealers, selling less to fleets, and offering retirement and attrition packages to current workers not affected by the layoffs.

Chrysler Group hopes the R&T plan will return the company to profitability as early as 2008. It's main weapon is cost reduction by the aforementioned layoffs and plant closings. The idea seems to be that if the company can reduce costs enough, its operating profit can offset the quarterly losses it will be facing in the near term.

It's not all slash and cut though, as Chrysler also announced a $3 billion investment in new engines, transmissions and axles that will focus on producing more fuel efficient power and drivetrains. One such product will be a dual-clutch transmission it's commissioned Getrag to produce and a new V6 engine dubbed "Phoenix". There's a slew of BLUETEC diesel vehicles on the horizon, and the 2008 Dodge Durango will host the company's first two-mode hybrid, as well.

One item of note in the press release issued is DaimlerChrysler CEO Dieter Zetsche's statement that, "we do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler," which some analysts have taken to mean that selling off the Chrysler Group wholesale is still on the table as a viable option.

Check out the Chrysler Group's full press release after the jump for all the nitty gritty details, and let us know in the comments whether or not you think the Recovery and Transformation plan has what it takes to turn Chrysler around.

[Source: Chrysler Group]

Continue reading Chrysler Group announces Recovery and Transformation plan

Chrysler Group announces Recovery and Transformation plan originally appeared on Autoblog on Wed, 14 Feb 2007 10:09:00 EST. Please see our terms for use of feeds.

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We have more details on the rumored restructuring plan that the Chrysler Group is expected to announce on February 14th. First, it's dubbed internally as "Project X", which must mean it involves chimpanzees and large doses of radiation. In addition to radiated chimps (we're kidding, click the link for the punchline), Automotive News is reporting that the plan will likely involve cutting 10,000 factory jobs and closing the Newark Assembly Plant that builds the Dodge Durango and Chrysler Aspen, as well as the an engine plant in Detroit that we believe makes the 4.7L V8 motor for Jeep and Dodge. The ultimate goal is reportedly to make the Chrysler Group smaller, more efficient and more closely alligned with Daimler-Chrysler and Mercedes-Benz. The restructuring plan sounds similar to those currently being implemented by General Motors and Ford, though smaller in scale. For its part, Ford learned a valuable lesson not cutting deep enough the first time around, so we're eager to see if the Chrysler Group comes back for a second round of cuts, as well.

[Source: Automotive News]

Chrysler's "Project X" calls for 10,000 jobs cuts, two closed plants originally appeared on Autoblog on Mon, 05 Feb 2007 13:57:00 EST. Please see our terms for use of feeds.

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After all the sales numbers for the month of January were released, reports began popping up that Ford had fallen to fourth place in sales in the U.S. last month behind General Motors, Toyota and the Chrysler Group. This is nothing more than selective journalism, with journos picking out the numbers that serve a sensational headline like "Ford's #4!". Basically, the battle for third place in sales in the U.S. is between Ford and DCX, and the victor depends on which brands you count in both company's sales numbers. In the past, Ford had always been counted as sales from Ford, Lincoln, Mercury and the Premier Automotive Group that includes Aston Martin, Jaguar, Land Rover and Volvo. If all those brands are counted, which they usually are, Ford sold 166,835 vehicles. Normally DaimlerChrysler sales are split in two between the Chrysler Group and Mercedes-Benz. The Chrysler Group sold 156,308 units in January, while Mercedes-Benz sold 17,069 last month. Together, DaimlerChrysler as a whole sold 173,377. True, in the battle of Ford vs. DaimlerChrysler, DCX wins. Even in the battle of Ford, Lincoln and Mercury vs. Chrysler, Dodge, and Jeep, the Chrysler Group again wins by a narrow margin of 156,308 to 153,026. However, if the numbers are calculated in the way that have been since we've been paying attention, Ford (including PAG) sold 166,835 units to the Chrysler Group's 156,308 units.

The problem is that, to our knowledge, the standard practice has been to count Ford's domestic brands with all of PAG and to count the Chrysler Group separately from Mercedes-Benz. We've pretty much been following the lead of each automaker, which releases their sales numbers in that fashion. Now, whether or not Mercedes sales should be split off from those of the Chrysler Group is an argument for another day. We just think it's convenient for some journalists to change the unofficial rules of the game to suit a sensational headline.

[Source: the Detroit News - "A NEW BIG 3?"]

Ford is not #4, still part of Big 3 originally appeared on Autoblog on Fri, 02 Feb 2007 12:29:00 EST. Please see our terms for use of feeds.

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