Autoblog

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

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

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.

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Wall Street Journal makes early Chrysler, Dodge and Fiat predictions

Jeremy Korzeniewski — Tue, 27 Oct 2009 12:32:00 EST

Filed under: Chrysler, Dodge, Jeep, Alfa Romeo, Fiat

Finally, after years of mismanagement marked by a distinct lack of tangible product decisions, the Chrysler, Dodge and Jeep brands seem likely to get a thorough makeover via its new Fiat corporate overlords. Whether this turns into a good thing or bad thing for the three brands remains to be seen, and the stage is set for the plan to be officially released on November 4.

The Wall Street Journal has apparently procured a little inside knowledge on the plan, and, if accurate, there are a few surprises. First, the expected: Chrysler will begin offering the Fiat 500 in its own U.S. dealerships as soon as possible; Alfa Romeo will make its long-awaited American comeback with an established dealer network and the majority of the Dodge and Chrysler lineups will be reworked atop Fiat platforms, save the rear-wheel drive architecture of the Dodge Charger/Challenger and Chrysler 300.

Looking further down the line, the Dodge Grand Caravan will reportedly be dropped in favor of the Chrysler Town and Country and unloved nameplates like Dodge Nitro, Caliber and Avenger will be forgotten, probably along with the Jeep Patriot and Compass. New models will be brought in from Fiat to replace these outgoing cars, including a new mid-size sedan in 2012. Finally, Alfa Romeo's resurgence will begin with the subcompact MiTo in 2012 and a larger sedan a year later.

We won't know how much of this is accurate until we hear it from the horse's mouth next Wednesday, but it definitely gives us plenty to chew on. Thanks to all who sent this in!

[Source: Wall Street Journal | Image: Bill Pugliano/Getty]

Wall Street Journal makes early Chrysler, Dodge and Fiat predictions originally appeared on Autoblog on Tue, 27 Oct 2009 12:32:00 EST. Please see our terms for use of feeds.

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Chrysler officially done building engines with Hyundai, Mitsubishi

Sam Abuelsamid — Fri, 11 Sep 2009 09:01:00 EST

Filed under: Plants/Manufacturing, Chrysler, Hyundai, Mitsubishi

In a terse statement issued last night, Chrysler made official what had been expected for at least a couple of weeks: The Global Engine Manufacturing Alliance is no more. Chrysler Group LLC has bought out its former partners Hyundai and Mitsubishi, and the Dundee, MI engine plant that builds Chrysler's four-cylinder engines for a variety of vehicles is now wholly owned by the company.

No buyout price was announced and the status of the engine designs was not mentioned. Presumably, the Japanese and Korean automakers which also build versions of the same engines will be allowed to continue doing so for the foreseeable future at their own manufacturing facilities. Mitsubishi uses a version of this engine in the latest versions of its Lancer, including the EVO. The Dundee plant began production in 2005.

[Source: Chrysler]

Continue reading Chrysler officially done building engines with Hyundai, Mitsubishi

Chrysler officially done building engines with Hyundai, Mitsubishi originally appeared on Autoblog on Fri, 11 Sep 2009 09:01:00 EST. Please see our terms for use of feeds.

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Officially Official: Chrysler PT Cruiser to live on

Sam Abuelsamid — Fri, 31 Jul 2009 11:32:00 EST

Filed under: Hatchback, Chrysler

Chrysler made it official this morning: the PT Cruiser will cruise on -- for at least another year. Earlier this spring, the PT Cruiser was one of several products slated to get the axe as Chrysler madly tried to boost it's bottom line in a failed attempt to stave off bankruptcy. However, shortly after Chrysler Group LLC was born out of the ashes of DaimlerChrysler and Cerberus, a report came out that PT Cruiser production would continue for a while.

Chrysler's Toluca Mexico plant has been building the Cruiser since 2000 and will continue production, although Chrysler isn't saying for how long. Since the tooling is long since paid for, we'd assume the PT will keep rolling off the line until sometime in late 2010 when new Fiat-based cars are expected to replace the Cruiser in Chrysler's revamped line-up. We recently had a chance to drive a "fresh" PT for a week, so stay tuned for a review.

Gallery: 2009 Chrysler Dream Cruiser Series 5

Continue reading Officially Official: Chrysler PT Cruiser to live on

Officially Official: Chrysler PT Cruiser to live on originally appeared on Autoblog on Fri, 31 Jul 2009 11:32:00 EST. Please see our terms for use of feeds.

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

Noah Joseph — Fri, 26 Jun 2009 09:55:00 EST

Filed under: Chrysler, 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]

REPORT: Alfa Romeo to lead American charge, Fiat 500 to go it alone originally appeared on Autoblog on Fri, 26 Jun 2009 09:55:00 EST. Please see our terms for use of feeds.

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Chrysler pondering whether Sebring/Avenger replacements should go rear-wheel drive?

Dan Roth — Mon, 22 Jun 2009 11:00:00 EST

Filed under: Concept Cars, Sedan, Chrysler, Alfa Romeo, Fiat

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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Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately

Frank Filipponio — Wed, 10 Jun 2009 13:28:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Chrysler, Earnings/Financials, Fiat

Fiat now owns a big chunk of Chrysler. Officially. Soon after the Supreme Court gave it the go-ahead, the sale of Chrysler to Fiat was complete. Altogether, the deal took just 42 days. With a couple of signatures and a wire transfer Wednesday morning, the sale was official. Fiat gets most of Chrysler's assets and $6.6 billion in "exit financing" from the federal government.

This can be seen as a victory of sorts for the Obama Administration, which had hoped to get Chrysler reorganized quickly and efficiently. Supporters say that the new Chrysler Group LLC has a good chance of being more competitive out of the box, having shed much of its legacy labor costs and debt, and Fiat's expertise with small cars shouldn't hurt either.

Official statements by current Chrysler CEO Bob Nardelli and Fiat's Sergio Marchionne are pasted in after the jump. Nardelli congratulates employees on being a part of "a leaner, healthier and more robust company," and says goodbye at the same time. He will return to a position with Cerberus. Marchionne introduces himself as the new CEO, former Toyota exec Jim Press as Deputy CEO, and Robert Kidder as board chairman. He also promises that the world's sixth largest automaker will begin to show signs of improvement immediately.

In related news, the Obama Administration has announced the appointment of a new 'Compensation Czar' to oversee the salaries and benefits packages awarded to 175 major executives at seven of America's biggest companies that receive federal aid. According to the New York Times, Washington attorney Kenneth R. Feinberg will have "broad discretion" in determining what compensation packages executives are awarded, including the top 25 decision makers at General Motors, GMAC, Chrysler, and Chrysler Finance.

For its part, as it emerges from bankruptcy, Chrysler's union retiree trust (VEBA) will own 55% of the company, with Fiat getting a 20% share that can grow to a max of 35%. The U.S. and Canadian governments split the rest. If the Fiat-Chrysler deal is any indication, General Motors may see a quick exit from bankruptcy as well, even without a Fiat of its own to step in and help. Now they just need to get people into showrooms with cash in hand.

[Sources: Chrysler, The New York Times | Photo by Sean Gallup/Getty]

Continue reading Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately

Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately originally appeared on Autoblog on Wed, 10 Jun 2009 13:28:00 EST. Please see our terms for use of feeds.

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Meet Brian Deese, the 31-year-old in charge of breaking up GM

Dan Roth — Fri, 05 Jun 2009 10:31:00 EST

Filed under: Government/Legal, GM

Many of us ABers being in our early- to mid-30s, we're less amazed that another of our ilk has risen to a decisive government position. We are, after all, a generation on the rise. The surprising part about Brian Deese's story is that he's been instrumental in shaping the Obama administration's moves to save General Motors, and this is his first official tour of duty in Washington. What qualifies a guy who hasn't even finished his Yale Law degree to steer President's automotive task force around? From what's been said about Mr. Deese, his quick ability to boil down the often competing economic and political aspects of any given issue.

Deese piped up in favor of Fiat's rescue of Chrysler, pointing out with a memo that a fire sale of the ailing automaker would send unforseen ripples out into the economy as a whole. Speaking out in such an influential manner is definitely unusual considering Deese doesn't appear to be an auto enthusiast or business propeller-head with his nose buried in studies and reports about the car industry. A childhood spent in the Boston suburb of Belmont, Massachusetts under the parentage of a college professor an an engineer, Deese did his undergraduate time at Middlebury College in Vermont before heading to Washington to work for Nancy Birdsall on international aid. A turn with former Clinton policy wonk Gene Sperling before the move to Yale, Hillary Clinton's bid for nomination brought Deese back to DC. With friends in Washington, Deese found himself hooked into the Obama team, and from there he's been running busily around our nation's capital.

If General Motors can successfully navigate Chapter 11, we'll all get to see just how well Brian Deese has done digesting the thorny chestnut that is saving our domestic auto industry.

[Source: The New York Times, Image: Maxhawkins - CC2.0]

Meet Brian Deese, the 31-year-old in charge of breaking up GM originally appeared on Autoblog on Fri, 05 Jun 2009 10:31:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #130

Dan Roth — Tue, 02 Jun 2009 16:45:00 EST

Filed under: Podcasts, Government/Legal, Chrysler, Ford, GM, Volvo, Earnings/Financials, Opel, Fiat, Opinion/Editorial

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

Episode #130 of the Autoblog Podcast sees Chris, Sam, and Dan kibbitzing over the obvious news, but it's not an All-GM-Bankruptcy show. Starting with General Motors (after all, it's a huge event) we move on to Magna's deal with Opel (and GM, coincidentally). Volvo's clever implementation of a diesel hybrid in its wagon comes next before talk turns to Fiat-based Chryslers. It all wraps up at about an hour and a half after we polish off some of your questions. Thanks for listening, hit us up at Podcast at autoblog dot com with questions/comments/praise/scorn.

Follow the jump to subscribe to the Autoblog Podcast in iTunes, add the show to your RSS aggregator... or listen to it right now!

Continue reading Autoblog Podcast #130

Autoblog Podcast #130 originally appeared on Autoblog on Tue, 02 Jun 2009 16:45:00 EST. Please see our terms for use of feeds.

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Officially, Official: Bankruptcy judge approves sale of Chrysler assets

Sam Abuelsamid — Mon, 01 Jun 2009 08:55:00 EST

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

Late Sunday night, U.S. bankruptcy Judge Arthur Gonzalez approved the sale of Chrysler's remaining good assets to a group that includes the UAW VEBA health care trust, Fiat, and the U.S. and Canadian governments. The union will get a 68% stake, Fiat gets 20% and the governments split the rest. Gonzalez over-ruled virtually all objections to the deal on the grounds that the best chance of preserving any value in the assets was to move ahead with the sale. The only other viable alternative was liquidation, which would likely only bring a small fraction of the potential value in keeping the company alive.

Gonzalez cited the public interest as one of the reasons to move ahead with the sale. Because the billions of dollars in loans from the two governments, keeping the company alive it was decided that this course of action was the best opportunity for some repayment. Senior lenders will receive $2 billion, or about .29 cents on the dollar of the debt currently owed by Chrysler. Some 90 percent of the company's senior lenders were reportedly in support of the deal.

The "new" Chrysler will henceforth be known as Chrysler Group LLC.

[Source: Reuters]

Officially, Official: Bankruptcy judge approves sale of Chrysler assets originally appeared on Autoblog on Mon, 01 Jun 2009 08:55:00 EST. Please see our terms for use of feeds.

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Chrysler submits $448m plan to build electric vehicles

Jeremy Korzeniewski — Wed, 27 May 2009 12:35:00 EST

Chrysler Town & Country EV - Click above for a high-res gallery

Chrysler has submitted a series of plans to the U.S. Department of Energy intended to speed up the development of plug-in hybrids and fully electric cars and trucks under the DOE's Transportation Electrification Initiative and Electric Drive Vehicle Battery and Component Manufacturing Initiatives. Under the terms of these initiatives, Chrysler and the DOE would each pay half of a total investment of $448 million.

If approved, Chrysler says it will build a new-vehicle electrification technology and manufacturing center at an unnamed location in Michigan that would have the capacity to produce 20,000 vehicles per year. The initial programs would focus on building 100 plug-in hybrid versions of the Dodge Ram pickup truck along with 100 plug-in hybrid Chrysler Town & Country minivans. Further, 165 fully electric Town & Country cargo vans would be used by the U.S. Postal Service for daily mail service.

We'd be remiss if we didn't mention that today is also the day that Chrysler bankruptcy lawyers plan to file a motion to sell all of the automaker's best assets to the so-called New Chrysler group, which will likely be headed by Fiat CEO Sergio Marchionne. We can only assume these PHEV and EV programs would be lumped in with the rest of the good stuff.

Gallery: 2011 Chrysler EVs

Gallery: Chrysler EV USPS mini-van

[Source: Chrysler]

Continue reading Chrysler submits $448m plan to build electric vehicles

Chrysler submits $448m plan to build electric vehicles originally appeared on Autoblog on Wed, 27 May 2009 12:35:00 EST. Please see our terms for use of feeds.

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Consumer group objects to Chrysler bankruptcy, says customers could be stranded without warranty

Dan Roth — Thu, 21 May 2009 18:29:00 EST

Filed under: Government/Legal, Safety, Chrysler

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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And so it begins: Affected Chrysler dealers prepare suit

Jeremy Korzeniewski — Wed, 20 May 2009 14:01:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Chrysler, Earnings/Financials

Click above to view and explore Chrysler's dealer rejections nationwide and in your town

The consequences of the Obama Administration's hope for New Chrysler to emerge from bankruptcy as quickly as possible will be felt by the 789 dealerships being shut down by the automaker on June 9th. According to a statement filed by Stephen Lerner, an attorney representing the Committee of Chrysler Affected Dealers:

"Chrysler's proposed asset sale and request for immediate termination of the dealer franchises will destroy several hundred independent businesses, ruin the livelihoods of their owners, cause the loss of thousands of jobs and precipitate inevitable personal and business bankruptcies."

There's probably a lot of truth in that statement. As Ford Veep Jim Farley said, "You don't orphan four million customers overnight without some fallout." Still, none of this changes the fact that Chrysler needs to shed a large portion of its network of dealerships to ensure viability moving forward.

Says bankruptcy attorney at Mintz Levin, "The beauty of Chapter 11 is that you can accomplish these things that would be very difficult outside of Chapter 11." Somehow, we'd guess "beauty" isn't the word Chrysler's affected dealers would use, and we're interested to see how it all plays out in court.

[Source: Automotive News - Sub. Req.]

And so it begins: Affected Chrysler dealers prepare suit originally appeared on Autoblog on Wed, 20 May 2009 14:01:00 EST. Please see our terms for use of feeds.

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Tale of two Chryslers: Bankruptcy could take two years, not two months

John Neff — Wed, 13 May 2009 15:31:00 EST

Filed under: Government/Legal, Chrysler

When President Obama announced that Chrysler LLC would be filing for Chapter 11 bankruptcy in late April, he mentioned that the beleaguered automaker could emerge after 60 days. "Well, that's not so bad," we all thought. Turns out that as details of Chrysler's reemergence begin to surface, the actual time table for bankruptcy to be completed could be as much as two years, not two months.

A condition of Chrysler's emergence is splitting the company into two entities - a good Chrysler and a bad Chrysler. The good entity would contain everything within the company that's valuable like the Jeep brand and Dodge trucks and their associated assembly plants. That entity would be the one controlled by Fiat and owned by the UAW VEBA fund, the U.S. and Canadian governments and Fiat. President Obama was likely referring to this entity when he mentioned the 60-day time table, as a judge has already scheduled these good assets to be transfered into the new entity by May 27th.

The other entity, the bad one, will contain non-valuable assets like shuttered plants and be responsible for most of the companies debts and liabilities. Governments, creditors and any one else owed money by Chrysler would have to wait for these bad assets to be sold before they could receive any payment, and what they'll get is likely pennies on the dollar of what they're owed. This process of selling off the diseased parts of Chrysler is what administration officials are now reportedly saying may take up to two years. By that time, the good Chrysler may be humming along nicely under the leadership of Fiat while the last remaining vestiges of what went wrong are sold to the highest bidder.

[Source: Bloomberg, Source Image by Scott Olson/Getty ]

Tale of two Chryslers: Bankruptcy could take two years, not two months originally appeared on Autoblog on Wed, 13 May 2009 15:31:00 EST. Please see our terms for use of feeds.

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The Chrysler-Kia alliance that never was

Dan Roth — Thu, 07 May 2009 10:59:00 EST

Filed under: Etc., Chrysler, GM, Hyundai, Kia, Fiat, Rumormill

Chrysler has been trying to shack up with another automaker for quite a while now, and the trail of relationships that never got off the ground reads like a middle school diary. While Chrysler's deal with Fiat has all but gotten 500s rolling out of plants on this continent, a deal with Kia had been worked pretty hard as a way to source a car, resulting in a term sheet for the relationship. Kia ultimately put the kibosh on the deal, citing manufacturing issues, a move that sent Tom LaSorda around the globe trying to play matchmaker for his employer.

A deal with Nissan to swap trucks for small cars was all but official, but fell apart after the financial climate worsened further, so it seems there will be no Ram-based Titan after all. Another joint deal was investigated, this time with GAZ and Magna, to build a car in Russia using excess GAZ capacity. Serious talks with General Motors even went on under the "Project America" moniker back in October. For all the efforts to get the Auburn Hills automaker betrothed, it finally seems like things are moving along with an assist from Fiat, and we should start to see the nuts and bolts of the deal come together now.

[Source: WSJ]

The Chrysler-Kia alliance that never was originally appeared on Autoblog on Thu, 07 May 2009 10:59:00 EST. Please see our terms for use of feeds.

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Chrysler creditors continue to object, claim death threats

John Neff — Mon, 04 May 2009 18:02:00 EST

Filed under: Chrysler, Earnings/Financials

The same creditors who President Obama scolded last week for preventing Chrysler from restructuring outside of bankruptcy have filed objections in bankruptcy court against the automaker's plan to reemerge as a new company owned in part by Fiat. Chrysler has about $6.9 billion in debt that it owes to banks and hedge funds, and those entities who hold the I.O.U. for $4 billion of that debt have already agreed to accept $2 billion and walk away happy with the knowledge that it's better than nothing. Other senior creditors led by Oppenheimer Funds and Stairway Capital are not willing to walk away from the $3 billion they're owed without a fight. These creditors are specifically trying to block or delay the court proceedings scheduled for May 21st that would allow Chrysler to sell off its assets to a newly formed company of which Fiat would own a 20% stake that will grow to 35% after certain conditions are met. The Detroit News is also reporting that some of the dissenting lenders have received death threats that are being investigated by local police and the FBI.

This all comes down to the question of what these lenders would receive if Chrysler entered Chapter 7 and was liquidated versus what it's guaranteed to receive in a Chapter 11 settlement. Chrysler and the government claim they'll get more by settling, while the creditors claim otherwise. Considering that Chrysler's reemergence from Chapter 11 bankruptcy has the full support of the U.S. government, we're placing our bet on the proposed alliance and sale of assets to an entity owned partly by Fiat going through.

[Source: The Detroit News | Photo by Scott Olson/Getty]

Chrysler creditors continue to object, claim death threats originally appeared on Autoblog on Mon, 04 May 2009 18:02:00 EST. Please see our terms for use of feeds.

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Chrysler begins "New Car Company" ad campaign in newspapers

John Neff — Mon, 04 May 2009 15:58:00 EST

Filed under: Marketing/Advertising, Chrysler

In the midst of being taken over by Fiat ("alliance" sounds too egalitarian) and filing for Chapter 11 bankruptcy last week, Chrysler LLC fears that potential shoppers might forget that it's still in the business of selling cars and trucks. This sounds like a job for the Marketing Dept.! The automaker's message makers ran the ad you see here (click to enlarge) in "dozens of major newspapers across the country" over the weekend as part of its new "We Build" ad campaign. The tagline "We're Building a New Car Company" is accompanied by the 2011 Jeep Grand Cherokee, Chrysler 200C Concept and Dodge Circuit EV Concept. The copy below the vehicles tries to explain in flattering terms without using the word "bankruptcy" that Chrysler's got some things cooking, its "alliance" with Fiat and the technology sharing that will result being the biggest carrot.

A couple things struck as odd, though. For one, only one vehicle shown is an actual production vehicle, the 2011 Jeep Grand Cherokee, the other two being concepts, though the Dodge Circuit EV is in development (we've actually driven it). Two, when are marketing departments going to get that advertising in newspapers is not the best way to reach the most people with your message anymore? Honestly, had it not been for this post on Chrysler's employee communications blog, The Scoop, we would have never known because we don't read newspapers anymore unless they're offered on a Kindle. Chrysler says the ad campaign will continue in print, TV and radio later this week and highlight specific products, but still no web penetration. Save a tree people, go digital.

[Source: The Scoop]

Chrysler begins "New Car Company" ad campaign in newspapers originally appeared on Autoblog on Mon, 04 May 2009 15:58:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler products from Fiat could be here in 18 months

Jeremy Korzeniewski — Fri, 01 May 2009 16:57:00 EST

Filed under: Chrysler, Fiat

Fiat 500 - Click above for a high-res image gallery

Will we see a new line of Fiats in America in just 18 months? According to Chrysler vice chairman and president Tom LaSorda, the answer is "yes." Responding to reports that some analysts predict it will take upwards of three years before the first Fiat is (once again) sold in America, LaSorda said:

"We've done a lot of pre-work in terms of homologations and emissions. Eighteen months is practical. Three years is fundamentally wrong. We can do it faster."

Of course, in light of Thursday's bankruptcy filing at Chrysler, perhaps a better question is whether we'll still see Chrysler vehicles in 18 months. Jim Press, another Chrysler VP, says the ailing automaker still plans to reduce the number of nameplates it currently sells and offer Chrysler, Dodge and Jeep dealers under one roof. It remains to be seen how Fiat fits in to the discussion, but CEO Sergio Marchionne says they are indeed coming.

So, what's up first? Hard to say, but LaSorda did suggest that the retrotastic Fiat 500 MINI-fighter is likely to be built somewhere in the United States, Canada or Mexico for sales in the U.S. market.

Gallery: Fiat 500

[Source: Inside Line]

REPORT: Chrysler products from Fiat could be here in 18 months originally appeared on Autoblog on Fri, 01 May 2009 16:57:00 EST. Please see our terms for use of feeds.

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Eight plants to close under Chrysler bankruptcy

Jeremy Korzeniewski — Fri, 01 May 2009 15:35:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler

Now that the court documents have officially been filed, details regarding Chrysler's ongoing plans to stay in business are becoming a bit less muddy. Two corporations will be created from the dying automaker: a so-called "OldCo" with unwanted bits and liabilities that seem likely to die a slow and painful death through the automaker's Chapter 11 filing, and a "NewCo" that contains the best that the ailing automaker has to offer.

Tellingly, lumped in with the OldCo legal entity are eight plants that now seem likely to be closed down entirely. In addition to plants in south St. Louis, Missouri and Newark, Deleware that are already idle, the following 6 North American plants are in danger:

Sterling Heights (Mich.) Assembly Plant
Detroit (Mich.) Axle
Conner Avenue (Detroit) Assembly
St. Louis (Mo.) North Plant
Kenosha (Wisc.) Engine
Twinsburg (Ohio) Stamping Plant

These plants are all scheduled to be shut down by December of 2010. Considering that the assembly plant in Sterling Heights is the only location building the Chrysler Sebring and Dodge Avenger, these two unloved mid-size sedans appear to be on the chopping block. Further, the Connor Avenue Assembly plant is where Dodge builds the Viper, so unless a new knight in shining armor shows up to take the supercar operations off Chrysler's hands, that may be all she wrote for the V10-powered behemoth.

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

Eight plants to close under Chrysler bankruptcy originally appeared on Autoblog on Fri, 01 May 2009 15:35:00 EST. Please see our terms for use of feeds.

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Obama announces Chrysler bankruptcy, deal with Fiat; Nardelli out soon *UPDATED

Frank Filipponio — Thu, 30 Apr 2009 12:36:00 EST

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

President Obama has just concluded a televised press conference where he announced that Chrysler will indeed head into Chapter 11 bankruptcy proceedings almost immediately. As part of the same announcement, he noted that the Auburn Hills automaker has reached terms with Fiat and will be headed into a partnership agreement that will include a cash infusion and technology transfers. By some estimates, the restructuring is expected to take 30-to-60 days.

The announcement came after late-night talks with a small group of creditors broke off before a restructuring plan could be reached. During the conference, Obama took pains to note the sacrifice of many players, including some in the financial sector, but he openly chastized other hedge fund operators and speculators for holding out for more debt compensation, arguing that they were looking to make money on the taxpayer dollars.

Keeping an upbeat tone in his announcement, Obama also reassured Americans that they will be repaid in full before Fiat gets any stake in the automaker, and that GMAC has agreed to step in to provide loans for Chrysler vehicles. Canada is also pitching in to make it work, but the U.S. taxpayers will be on the hook for an additional $8 billion in aid. Obama also reiterated that the government will stand behind Chrysler and General Motors vehicle warranties, and he extolled Americans to purchase new vehicles from domestic automakers.

Finally, in related news, it is being reported that Chrysler CEO Bob Nardelli (whom Obama praised during the press conference) will exit the company after the bankruptcy filing is complete.

*UPDATE: A new Chrysler press release (posted after the jump) confirms that Nardelli will leave Chrysler after it emerges from bankruptcy:

He will return to Cerberus Capital Management LP as an advisor. "Now is an appropriate time to let others take the lead in the transformation of Chrysler with Fiat," said Nardelli. "I will work closely with all of our stakeholders to see that this new company swiftly emerges with a successful closing of the alliance."

The Detroit Bureau's Ken Zino has excellent analysis of the announcement here.

More details and analysis on the way...

[Image: Bill Pugliano/Getty]

Continue reading Obama announces Chrysler bankruptcy, deal with Fiat; Nardelli out soon *UPDATED

Obama announces Chrysler bankruptcy, deal with Fiat; Nardelli out soon *UPDATED originally appeared on Autoblog on Thu, 30 Apr 2009 12:36:00 EST. Please see our terms for use of feeds.

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