Autoblog

Playing the role of the wild and free divorcee, Chrysler is sending out 3,700 party kits and invitation to its dealers to mark the automaker's return to all-American greatness. The celebration will run in conjunction with a new ad campaign (TV, print, etc.) that touts the brand's rebirth, along with a new logo and some form of rewards that will attract new buyers.

No dates have been set, but expect the balloons to drop sometime between July 25th and Aug 10th, when DCX sells off the automaker to Cerberus Capital Management, and the company is renamed Chrysler Corp.

[Source: Detroit News]

Whoopee, just what Dodge needs, another crossover. We're glad that operations are still underway after the sale announcement, but come on, have cars been forsaken? The Jalopnik boys captured an odd duo cruising around; a JC 49 with camo, followed by a PSA minivan. Would it be rude to confess we're more interested in the French van?

Based on the Sebring/Avenger platform, the JC 49 will likely wind up with a 3.5 liter V6 at the top of the range, if the dual exhausts are any indication. The JC 49 will share a familial resemblance to the Nitro, so think squared shoulders, crosshair grille, essentially an Avenger adaptation of the Magnum idea. Look for the camo to come off around the end of the year. We can hardly contain ourselves.

[Source: Jalopnik]

Lee Iacocca has been an automotive icon for so long, it's hard to remember a time when he wasn't in the picture. He was at the apex of the Ford Mustang project, saved Chrysler from ruin, and lead the charge for the minivan. Those credentials have helped Iacocca sell some books over the years, and his new book, "Where have all the leaders gone" takes some big cuts at the leadership in the White House, and a few auto executives, too.

We haven't gotten our hands on a copy of the new book yet, but after reading the book's opening lines as quoted by the Free Press, we'll have to give those pages a turn. "We've got a gang of clueless bozos steering our ship of state right over a cliff, we've got corporate gangsters stealing us blind, and we can't even clean up after a hurricane much less build a hybrid car." Ouch.

The book also points out some things that Iacocca has done that he now probably regrets. According to the Free Press, he criticizes former Chrysler CEO Bob Eaton for not fighting for a true merger, but he also points out that he chose Eaton to be his successor in 1992. Iacocca also touches on what he thinks would happen if Chrysler was sold, saying that the company would become "a shell" of its former self.

When you've done as many great things as Lee Iacocca, you get to say just about anything you want. From what we've seen already from his new book, Iacocca is freely exercising that right.

[Source: Detroit Free Press]

The bean counters at DaimlerChrysler have decided to postpone the automaker's first quarter results, mainly due to a switch from one set of reporting standards to another. Instead of publishing the report in April, as expected, DCX plans to release its quarterly earnings sometime in mid-May.

A DaimlerChrysler spokesperson assured Automotive News that the delay was strictly due to the changes necessitated from shifting from the U.S. GAAP standards to the pan-European International Financial Reporting Standards (IFRS). Although many publicly listed companies made this transition in 2005, DCX was one of the few that put off the shift until 2007.

[Source: Automotive News – Sub. Req.]

Not much has been heard about GM's acquisition of Chrysler recently, and with parts supplier Magna partnering with two private equity firms, the General has taken a back seat in the bidding. According to both Automotive News and the Detroit News, GM's proposal is still on the table, although at first, it was rejected by DCX's execs.

The original bid, outlined by Fritz Henderson, GM's CFO, proposed that no money would be exchanged for Chrysler, however, DCX would receive a small amount of GM stock and DaimlerChrysler would actually pay General Motors $1 billion to help cover "unfunded health care liabilities." DCX felt that this bid was far too low to even consider.

Additionally, GM wants the unions in both the U.S. and Canada to make concessions for the General and Chrysler if such a purchase was to take place.

While GM's acquisition of Chrysler is still considered a long shot by many, the fact that the General Motors' bid is still being measured confirms Dr. Z's initial "all options" quote.

[Sources: Automotive News (Sub. Req.), Detroit News]

Times have been tough lately for the Chrysler group, so we're happy to see the company is soldiering on. Dodge may be late to the crossover game, but with a best-selling minivan, the automaker hasn't had the need to bring another people mover to market. However, with minivan sales stagnant and competitors ushering in a greater variety of products into the showroom, we think it's a good idea for Dodge to take a stab at the crossover segment.

The folks over at Allpar say the new Dodge crossover will be named "Crew" and will do battle with the likes of the Toyota Highlander and Ford Edge. The crossover will be underpinned by the Dodge Avenger platform, with top-end power likely to come from the
Avenger's 3.5L V6 or the 4.0L V6 that motivates the Pacifica, while Chrysler's 2.4L world engine is a possible candidate for the base model. Beginning in December 2007, the "Crew" is going to be built along side the PT Cruiser at the Toluca plant in Mexico. Chrysler may use the JC49 platform to replace the PT Cruiser in 2010, with little or no connections to the looks of the current PT. Word is that the vehicle will be priced from around $20,000, which we think would be necessary to meet Chrysler's lofty goal of 150,000 units per year.

[Source: Allpar.com]

We're fired up about a few things for episode #61. We eventually get to an enthusiastic discussion of the American LeMans Series, but we wind our way through a few subjects to get there. We start off with the snub to Chrysler by some DCX shareholders who suggest a return to Daimler-Benz AG name. Not only is that a kick in the pants to the Chrysler group, but it's incredibly arrogant and illustrates that it was never really a merger of equals. In a froth, we move on to the anti-surprise that Nissan has nixed the heavy-duty Titan. In the death match that is the US pickup truck marketplace, the Japanese are having a tough fight. The Titan has its own charms but low sales, and the Tundra is taking criticism and underperforming in crash tests. We get the truck wars out of our system and move on to rhapsodic descriptions of the GT2 finish at this weekend's ALMS Sebring kickoff. Oh yeah, there were some kind of Audis there, and Acuras, too. We can't get the last-lap dogfight between the Ferrari and Porsche for the GT2 crown out of our heads, though. Before we go, we touch briefly on Smart's recently-opened registration for US buyers, as well as marvel at the low price for the practical city car that will end up as an effette bauble, as well. That's it in a nutshell, enjoy!

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The C-class is the entry-level Benz in the North American market. As such, every nouveau riche new graduate seemingly goes out and treats themselves to a slice of flashy bourgeois pie. That can be alarming for the Euro-car fan, as you risk being lumped into that precocious category along with Johnny Overachiever from down the block. There's no denying that the Stuttgart Swabians build nice vehicles, and we've certainly considered parking one in our driveway. We wouldn't want to deny ourselves the pleasure just to avoid being lumped in with a group of lecherous climbers, either. Lorinser has given the C-class a once-over and made it possible for true car-guys to have their Mercedes pleasure while standing apart from the schmuck brigade.

We love the look of the cosmetic upgrades. The turbine-style wheels look like impellers from a turbocharger with a wacky pituitary gland, and we wonder if they can slice, dice and julienne at speed. We're not normally fans of unnecessary extra ventilation, but the revised front quarter panels have gained a nice pair of extractors. We do find the "gills" in the lower rocker covers sorta strange, and they don't appear to have any purpose other than serving as a visual element. The front airdam has also received some tasteful attention, and Lorinser offers performance upgrades to back up the high-powered looks. Unlike some of the entry-level MBZ crowd, we'd rather the car be the high-powered one in a zoot suit.


[Source: World Car Fans]

Rumors have been flying around about which companies and/or equity groups are interested in purchasing the Chrysler Group. Buyout firm Cerberus has shown it is definitely in the running by hiring former Chrysler COO Wolfgang Bernhard as a consultant. Bernhard could be an asset to Cerberus since he knows Chrysler's strengths and weaknesses and was one of the architects of Chrysler's last restructuring and short-lived resurgence in the new milennium.

Bernhard has had a string of bad luck lately with jobs, beginning with his ousting from DCX in 2004. He quickly moved over to VW where he was recently let go after a management shuffle. Bernhard never seems to be out of work for long, however, and now he gets the chance to advise one of the front runners on how best to approach a potential Chrysler purchase. If Cerberus does, in fact, win the right to own Chrysler, we wouldn't be surprised to see Bernhard as the new Chrysler CEO.

[Source: Automotive News]

Since Daimler Chrysler CEO Dieter Zetsche declared 'all options are open' with regards to a possible Chrysler sale, the rumors have been flying. With the exception of GM and Magna, every automaker that comes up as a potential suitor has politely denied the rumor. VW, Hyundai, and Ford have all denied interest in Chrysler, and the Chinese automakers haven't exactly gotten in line to throw their names in the hat.

Surprisingly, over the past few weeks Wall St. has shown some of the strongest interest in the Chrysler brand. Blackstone Group, an investment company with a whopping $125 billion in its corporate war chest, has emerged as one of Chrysler's potential suitors. In fact, the company was already given access to confidential business data about Chrysler.

Blackstone already has seen success in the automotive sector with a 56% ownership in TRW and a stake in American Axle. Another investment firm that has been eying Chrysler has been Cerberus. The company leads a group of investors looking at bankrupt Delphi and they already own a 51% stake in GMAC.

[Source: Detroit News]