Chrysler's over-sized dealer-body has been struggling with the Pentastar's shrinking market share, but that's not stopping Chrysler brass from asking them for donations for the newly non-profit Walter P. Chrysler museum. Dealers are being asked to contribute $5,000 apiece to help keep the museum up and running, and in turn Chrysler is changing the museum's name to the Walter P. Chrysler Founding Dealers Society. Dealers that participate in the program will get their name added to the Founding Dealers Society Donor Wall.
While it's well-known that Chrysler is working hard to shrink non-core costs, the 70-vehicle museum only has six full-time employees, which doesn't meaningfully impact the bottom-line. The program is strictly voluntary as well, so no dealers will be unwillingly hurt during the funding of this museum.
If you have a Dodge Ram in the driveway and someone claiming to be Jim Press calls you asking if you're satisfied with your truck, it just might be him. Chrysler recognizes that it has a customer service problem, and the Pentastar is going to extraordinary lengths to correct it. Its top 300 executives and directors are participating in a program called "Customer First" that puts a priority on -- you guessed it -- the customer. The executives, even guys named Nardelli, Press, and LaSorda, are responsible for at least one customer call per day, and all execs will man at least one shift at Chrysler's customer call center.
The Pentastar elite are also partaking in a three month competition to see who can generate the most sales. We don't know what the prize is for the winner, but whomever claims top sales should get something really, really good. Like a lifetime supply of Chrysler Sebrings.
Daimler may have divested 80.1% of its ownership in Chrysler, but the German automaker is still feeling pain from the Pentastar. The value of Daimler's portion of Chrysler has dropped from $2.18 billion to $852 million not even a year after the two parted ways. The loss of nearly $1.4 billion in value is a fair chunk of change, even for the mighty Daimler, but the news is not all bad for company shareholders. If Daimler hadn't sold Chrysler to the private equity firm Cerberus as fast as it did, the automaker's stock would likely be in much worse shape.
Since the privately owned Chrysler, LLC doesn't have to report earnings, it claims that its fiscal standing is all peaches and cream. According to Chrysler, the company has had positive earnings since it was bought out by Cerberus last year. The official line that explains the discrepancy with Daimler's reporting is that U.S. accounting rules are much more favorable than those overseas. Damn accountants.
Chrysler is looking to offload two of its axle plants in an effort to limit its in-house parts production. The automaker has already offered to sell both plants to American Axle & Manufacturing and Dana Corp. for $400 million, according to sources cited by the Wall Street Journal. Unfortunately for Chrysler, however, there hasn't been much interest in the offer. The move could also include the closure of Detroit Axle and the purchase of Chrysler's unfinished plant in Marysville. All of this is further proof that the Cerberus-owned automaker is making a serious attempt to pair down its production facilities and lessen its overhead.
Click on image above for his-res gallery of the SRT8
As expected, the entire first-year production run of 6,400 Dodge Challenger SRT8 models has sold out. The purchase slots for 2008 models were in short supply two months ago when we reported that more than 10,000 orders had been placed for the 425-hp muscle car. You can still give your dealer all the coins in your piggy bank, but the money goes on the hood of 2009 model, scheduled to arrive this fall.
If the thought of missing out on one of these rare 2008-model HEMI-powered beasts is keeping you up at night and you just can't wait for next year, there's always eBay. Although Chrysler tried to dissuade dealers from gouging, more than two dozen of the $37,995 (base MSRP) cars have been put on the auction site -- mostly by speculating dealers with prices in the mid-$50,000 range. Ah, the joys of a free market...
If you've been waiting on pins and needles for a small Chrysler that's due to be built in China by Chery, you're going to have to twiddle your thumbs a little longer. Though we've been hearing about a Chrysler/Chery Hornet or Demon for some time, execs from both companies don't believe the products are ready for North America, yet. Quality and safety are still a concern with the vehicles, but Chrysler's China boss Phil Murtaugh feels the challenges are far from insurmountable. Chery Chairman, Yin Tongyao, is also convinced that more work needs to be done to get the product up to US standards, saying the US and Europe are "very mature markets."
Chery is dying to get its affordable vehicles into the US market, but both Chrysler and Chery seem to understand that any sub-standard Chinese vehicles are destined to take their place next to Yugo in the history books. Chances are that the two companies will only have one shot to get things right, and if the final product is garbage, Chery will be finished in the US, and Chrysler's already dim rep will start to flicker. If the inexpensive vehicles are a big hit, however, the Pentastar will be pulling in Yuan hand over fist.
Despite the fact that the beleaguered automaker has not yet turned a profit since its unceremonious departure from Daimler to Cerberus, Chrysler CEO Bob Nardelli says that the company is still on track. "Through the first quarter we are still on plan relative to the pro forma and the targets we established for 2008, in spite of some of the economic winds that are hitting us," he says. In order to turn last year's $1.6 billion loss into positive cash flow, Chrysler will be relying heavily on joint-partnerships like the one it just announced with Nissan (but probably not Fiat) as well as with new and advanced engineering. Nardelli highlights interiors, upcoming technology integration and alternative powertrains as potential new incoming-generating features for their line of vehicles.
With Project Genesis in full swing, new revelations from Steven Landry, Chrysler executive vice president for North American Sales, have shed some more light on the corporate strategy to trim waste and turn the company around. As of now, dealers are under the belief that the automaker intends to cut its lineup by one-third to one-half. Supporting that assumption, Landry told a crowd at Northwood University that "twins" -- vehicles built on the same platform yet are sold under different brand names -- are out (think Jeep Liberty / Dodge Nitro). As Chrysler has more than a handful of twins, sold under several different brands, their dilemma will be in choosing which twin gets the axe, and which gets to survive.
As Chrysler moves ahead with its "consolidation strategy" (a.k.a. Project Genesis), it's apparently had enough foresight to realize that shutting down dealerships seriously handicaps your ability to service your customers. According to Steven Landry, Chrysler executive vice president of North American sales, the company's solution will be "stand-alone service stores" -- it is easiest to think of them as dealerships that have closed, but the service department still remains open.
While the first stand-alone service store is still about two years from opening its doors, Chrysler is in active talks with a handful of other retailers about the strategy with customer service as their goal. "If we all of a sudden go from 80 stalls to 40 stalls we don't want to do our customers a disservice," says Landry. "You need to have the right number of stalls." Funny, any woman at a professional sporting event could have told you that.
Click above to view more high-res sketches of rejected Rams
Chrysler is in the battle of its life to regain its competitiveness here in North America, and there is perhaps no vehicle more important to becoming profitable again than the 2009 Dodge Ram. The Pentastar put in a lot of elbow grease to get this truck just right, and the end result is improved power and efficiency, more storage, and a more refined look than the current truck. We like the design of the new Ram, but the production truck unveiled in Detroit was just one of many designs sketched by Chrysler artists.
Friend of Autoblog Mike Levine at Pickuptruck.com got his hands on many of the designs that led to the Ram we'll see in showrooms this fall, and the sketches range from interesting to bizarre. If you take the photo above, for instance, you can see where Dodge was trying to conceptualize nifty storage solutions. The forward-leaning cross-hair grille and integrated bumper had already taken shape, too. Check out our gallery below that includes some exclusive pictures of rejected Rams, and visit PIckuptruck.com to see even more.
Following the announcement this past January that Nissan would be supplying Chrysler with a new car based of the Versa's platform, the two automakers announced today that more exchange is on the horizon, including a new small car for Chrysler and a Dodge-based pickup for Nissan.
The unnamed small car will be built by Nissan in Japan utilizing a Chrysler design and will be sold in North America, Europe and other markets in 2010. On the other side of the spectrum, Chrysler will build a full-size pick-up for Nissan that will share design cues with the rest of the Nissan line and be built at Chrysler's Saltillo Assembly Plant in Mexico. Sales of the pick-up will begin in North America in 2011.
The move is part of an effort by both automakers to utilize each other's global manufacturing facilities and finally gets Carlos Ghosn, Nissan's CEO, the American automaker partnership he's been looking for since last year.
We're hoping on a conference call with Nissan to see if either automaker releases more information, but in the meantime check Chrysler's press release after the jump.
UPDATE: No word on whether or not the new Nissan pick-up will use Chrysler's hybrid drivetrain. Nissan spokespeople are not calling this a partnership, rather an "OEM exchange" and nothing more. UPDATE 2: The Nissan pick-up will be a full-size light truck. UPDATE 3: The Chrysler small car will be on a Nissan-developed platform and will be covered in Chrysler-designed sheetmetal. The platform will not be based of the Versa. Nissan reps couldn't answer any questions about whether or not the small car will share any design cues from the Dodge Hornet concept. UPDATE 4: We're going to hop onto the the Chrysler conference in a bit and will update this post with information as it happens. Check back in about 30 minutes for more. UPDATE 5: Chrysler and Chery are still working together. Chery has Chrysler drivetrain people working with them now. Chery-developed B-segment model is still in the offing, but no idea when it could come to the U.S. UPDATE 6: Chrysler's design team just wrapped up styling of the small car, so it's doubtful that it will share many cues with the Hornet concept. Too bad, since the Hornet was well received. LaSorda says, "it's a beautiful design."
click above image to view high-res gallery of the Dodge Journey
According to the sprawling press release pasted after the break, Dodge is planning their largest ever digital marketing push to accompany the launch of its new Journey CUV. "The campaign ties consumers to the new Dodge Journey emotionally by helping them realize their dreams, then drives them to action," according to Dodge's Senior manager of Communications, Mark Spencer. While we recognize the Journey as a credible entry into the crowded CUV segment, we don't feel any special emotional attachment to it, nor are we sure that it'll be making people's dreams come true -- unless they were dreaming for a price break on their next vehicle purchase. Still, for those who sit at the I'll-never-own-a-minivan table, the Journey offers a nice option, with lots of clever storage solutions, save the poorly placed sat nav.
Dodge's dreamy Journey strategy is closely related to Chrysler's new "If you can dream it, we can build it" campaign, which will debut on April 14.
Anyone who's rolling in a 2007-2008 Chrysler Sebring or Dodge Avenger, take note. Chryslerberus is recalling all 181,000 of those vehicles sold during that time to fix an electrical defect that affects unused connectors on the tire pressure monitoring system. Apparently, corrosion can cause a short, and owners could experience their vehicles failing to start, stalling once underway, or some other affectations of the electrical components, including the cruise control. Formal notices are going to be sent out later this month, and dealers have been instructed to locate the problem and seal the affected circuits. Check your mailboxes, folks.
Car sales in the U.S. flat-out suck right now, and both domestic and Japanese automakers are feeling the pinch. Chrysler posted a 13.2% decline in its Daily Sales Rate last month while offering 0% financing, so the Auburn Hills-based automaker has little choice but to continue offering free loans in an effort to stop the bleeding. Current deals include five years at 0% for 2008 models and six years for leftover 2007 models. Chrysler is also dealing with folks with less than perfect credit, which is a risky move with credit restrictions so tight right now.
Beyond money for nothing, Chrysler is also looking into further production cuts to keep dealer inventory in check. It's also cutting labor costs by offering buyouts to workers to shed its army of industrial storm troopers by up to 10,000. Times are tough right now in the auto industry, but if you're in the market to buy a new car, 0% appears to be making a comeback
Unfortunately for Chrysler's army of some 14,000 white-collar retirees, the automaker has announced that it will be cutting the free life insurance that workers were previously covered by. Those affected will be given a one-time opportunity to buy into the plan themselves, which offers coverage equal to their last year of pay if retired before 2003 or $50,000 for those who retired after the cutoff. They're also eligible for receiving a $4,000 bump in their pensions. Of note is that the cancelation does not affect any union-represented workers or retirees.
Clearly a cost-cutting measure for the company, we're not sure how much it will actually save Chrysler per year, but apparently it's enough. Since those affected no longer work for the company, Chrysler knows that the move will not affect how its business currently runs, and since these workers aren't unionized, there's not much they can do about it, either.
If you have a Dodge Ram in the driveway and someone claiming to be Jim Press calls you asking if you're satisfied with your truck, it just might be him. Chrysler recognizes that it has a customer service problem, and the Pentastar is going to extraordinary lengths to correct it. Its top 300 executives and directors are participating in a program called "Customer First" that puts a priority on -- you guessed it -- the customer. The executives, even guys named Nardelli, Press, and LaSorda, are responsible for at least one customer call per day, and all execs will man at least one shift at Chrysler's customer call center. 
Chrysler is looking to offload two of its axle plants in an effort to limit its in-house parts production. The automaker has already offered to sell both plants to American Axle & Manufacturing and Dana Corp. for $400 million, according to sources cited by the Wall Street Journal. Unfortunately for Chrysler, however, there hasn't been much interest in the offer. The move could also include the closure of Detroit Axle and the purchase of Chrysler's unfinished plant in Marysville. All of this is further proof that the Cerberus-owned automaker is making a serious attempt to pair down its production facilities and lessen its overhead.
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Despite the fact that the beleaguered automaker has not yet turned a profit since its unceremonious departure from Daimler to Cerberus, Chrysler CEO Bob Nardelli says that the company is still on track. "Through the first quarter we are still on plan relative to the pro forma and the targets we established for 2008, in spite of some of the economic winds that are hitting us," he says. In order to turn last year's $1.6 billion loss into positive cash flow, Chrysler will be relying heavily on joint-partnerships like the one it just announced with 
Car sales in the U.S. 
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_thumbnail.jpg "Lamborghini Reventon unboxed in Las Vegas")
