Even more terrifying tales of the automotive bailout are emerging from Steven Rattner's new book. CNN Money reports that, according to the text, Chrysler had an even rougher go of things than General Motors. Rattner, who served as the head of the automotive task force, writes that after congress failed to give Chrysler the $7 billion in funding that the company originally asked for, executives began to scramble to find other ways to keep the operation afloat. That includes Pentastar boss Bob Nar
Sergio Marchionne harbors no illusions about Chrysler being in the black for 2010. The Detroit News reports the Chrysler chairman and Fiat CEO stated flat out that a net profit in 2010 isn't likely during an August 23rd tour of a Toledo Jeep plant. Despite recent reports of operating profits from Chrysler, there's still tremendous cost associated with loan interest payments and a lineup of moribund product to turn over. Add to the mix the reintroduction of Fiat automobiles to the U.S. market, an
It's no secret that Chrysler's future plans are in a constant state of flux right now. After all, the automaker just went through a ridiculously fast bankruptcy where bits and pieces were shed before stewardship was handed over to Italy's Fiat. It's only natural that Chrysler's new management would need some time to get itself organized.
Company representatives for Chrysler have been in contact with at least 50 dealerships regarding reinstatement into the the automaker's dealer network. According to a leader who represents the 400-plus dealerships seeking arbitration, the dealers contacted will receive intent letters to begin the lengthy reinstatement process.
The United States Treasury Department, under the direction of pay czar Kenneth Feinberg (pictured) has cut the total cash compensation for the top 25 executives at both General Motors and Chrysler, among other companies who received bailout assistance under the $700 billion Troubled Asset Relief Program (TARP). On average, the overall compensation for 2010 is down 15 percent versus 2009.
Chrysler's international sales in both the minivan and pickup categories are strong, but the company lacks strong small vehicle sales outside of the U.S. In Canada, Chrysler may be fairing well in the light truck market, but is virtually non-existent in both the B-segment and the C-segment of passenger cars. With limited international success in the small car market, Chrysler struggles to gain a strong foothold. B-segment and C-segment vehicles accounted for more than half of all vehicles sold i
With the ENVI electric vehicle group disbanded, the engineers at Chrysler will need to resort to old-fashioned efficiency improvements to meet upcoming federal CAFE regulations for cleaner vehicles. That's just what the company has in store to show off this week at the Detroit Auto Show with three new powerplants that it says will improve fuel economy by 25 percent by 2014. The three engines on display in Detroit are:
So you're Chrysler, and you hop into the Chapter 11 pool to save your own skin. While you can wash away some of your past sins with a bankruptcy-protection filing, the deal with Chapter 11 is that you've got to come up with a way to get out of your financial pickle and return to profitability. Part of the Chrysler plan to keep its head above water was divestiture of 789 dealers, a very unpopular idea with the rejected sales organizations (and no small number of politicians, whose ears were subse
Before Fiat and prior to bankruptcy, the old Chrysler, LLC needed $4 billion just to keep the doors open. The Bush Administration came through with the company-saving cash at the 11th hour, keeping the Pentastar solvent long enough to make it to bankruptcy court. Chrysler was reportedly given $15 billion in total aid, and it appears much of that money will be repaid through future payments and through incentives for Fiat to increase its stake in Chrysler from 20 percent to 35 percent. But that o
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.
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.