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Chrysler LLC hosted a multi-hour business plan meeting last week where the reborn automaker detailed its strategy for the next few years. Enabled by its new partner Fiat, Chrysler will consolidate platforms, expand product offerings, and aim to boost sales volume and profit. All while significantly increasing product quality. Sounds good so far. The basic breakdown begins with reducing the number of unique platforms. Aside from pickup trucks, Chrysler, Dodge, and Jeep count 11 platforms today. For 2014, the aim is to use just six, and that includes expanding into the A/B subcompact/compact-car segments thanks to Fiat. The trick is to move C and D segment vehicles, including small and midsized crossovers and sedans, onto a single, versatile platform. The Jeep Wrangler will have the distinction of having its own platform. (There’s only one, as they say.) The large sedans, minivans, and larger SUVs will each ride on three distinct platforms. There are several tangible benefits to this strategy. Chrysler lost its engineering partner with Daimler divested its interests. While Chrysler continues to use variations of Mercedes platforms, access to such resources is finite going forward. New...
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It's the week ending November 6, and we've browsed our favorite automotive blogs all week long to gather the highlights from each.
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Too much time spent watching television may rot your brain, but video entertainment on the road can make long trips pass by more quickly for all aboard. A clever new digital pacifier will be available on select Chrysler, Dodge, and Jeep models starting late December providing live television on the go. And, with 20 channels to select from, there will be much more than cartoons to entertain travelers. Where previous mobile television systems have focused on the kids, Chrysler is touting a broad selection of cable-type channels that includes CBS Mobile, CNBC, Comedy Central, FOX News, MSNBC, MTV, NBC 2Go, and Nickelodeon. The Flo TV system will cost $629 plus installation, and it includes one-year service subscription. Offered as a Mopar accessory, the entertainment package will be available as a dealer-installed option on the following 2008-2010 model year vehicles with factory DVD entertainment systems: Chrysler Town & Country , Jeep Grand Cherokee , Jeep Commander , Dodge Grand Caravan, Dodge Journey , Dodge Nitro , Ram 1500 and Ram 2500/3500. The service also can be added to select 2008-2010 model-year vehicles when new Mopar headrest or seat-top DVD entertainment systems are...
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This year, Jeep has announced four vehicles will be introduced at SEMA, including the Dodge Challenger 1320 Drag Pak, upscale Dodge Ram Bianco, Jeep Wrangler Overland camp-anywhere concept, and the Jeep Wrangler Lower Forty....
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Not much in the way of new product. Remember, the company is rapidly reinventing itself, now that it has purged billions in so-called bad assets and almost 800 dealerships , leaving a leaner Chrysler Group to develop a revised product portfolio with its new corporate partner Fiat. (Read: " Like a Phoenix, New Chrysler Group LLC Rises .") For the imminent future, there simply isn’t much happening. The products are largely in a holding pattern for another model year. However, if you look closely, there are numerous refinements that should make the vehicles more satisfying to own than before, though not the kind of breakthrough changes that are likely to spark showroom traffic. Below are the highlights of the Chrysler, Dodge, and Jeep product updates for the 2010 model year. We have already blogged on the notable update to Dodge Caliber’s interior . Most other vehicles that receive any update for the new model year are given a light touch. The one exception is the 2010 Dodge Ram heavy-duty pickups to be offered for the first time in a true crew-cab configuration, complimenting the regular and mega cab. All heavy-duty trucks are distinguished from their light-duty brethren by...
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With consumers itching to take advantage of the new Car Allowance Rebate System (CARS) program that is rolling out nationwide, Chrysler is looking to sweeten the pot by offering similar additional incentives on many cars and trucks. The “Double Cash For Your Old Car” incentive has the automaker offering $3,500 to $4,500 off the purchase of new 2009 Chrysler , Dodge , and Jeep vehicles, potentially doubling the discount some customers can get this summer. Customers will be able to choose the Double Cash program, or zero percent financing for 72 months. (Run your own numbers before deciding, as in many cases the rebate will save more money in the long run.) The program is in place through August 31, 2009. Eligible 2009 vehicles and rebate about listed below, notably excluding the iconic Jeep Wrangler and SRT models. Additional local and owner loyalty incentives may be available. Double Cash For Your Old Car Chrysler 300 - $3,500 Chrysler Aspen - $4,500 Chrysler PT Cruiser - $4,500 Chrysler Sebring - $4,500 Chrysler Sebring Convertible $3,500 Chrysler Town & Country $3,500 Dodge Avenger $4,500 Dodge Caliber $3,500 Dodge Grand Caravan $3,500 Dodge Charger $3,500 Dodge Dakota $3,500...
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Just hours after the U.S. Supreme Court approved the split of Chrysler into an old company and new company, Chrysler Group LLC proudly emerged under new ownership. Under the terms approved by the U.S. Bankruptcy Court in New York, the key assets from old Chrysler LLC, without certain debts and liabilities, were sold to the new company. The Chrysler , Dodge , Jeep , and Mopar brands, along with new partner Fiat , hit the ground running, rapidly remolding the company and preparing to face the formidable challenges that lay ahead. As part of the alliance, Fiat will share its technology, platforms, and powertrains for small- and medium-sized cars, allowing the new company to offer a full product portfolio—a critical weakness with old Chrysler that contributed to its downfall. Chrysler will also benefit from Fiat's management expertise in business turnaround and access to Fiat's international distribution network with particular focus on Latin America and Russia. "This is a very significant day, not only for Chrysler and its dedicated employees, who have persevered through a great deal of uncertainty during the past year, but for the global automotive industry as a whole,"...
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Today was a fateful day for Chrysler. June 9th will be remembered through automotive history as the day Chrysler let go one quarter of its dealers, or 789 total. (Check to see if any closed dealers are near you .) Friday, federal bankruptcy court had approved the split of old and new Chrysler, enabling the new company to slough off debts and obligations, while restructuring with new owners. That move was pending Supreme Court approval, enabling consideration for appeals. Monday, the Supreme Court issued a stay, buying time to review the claims, lead by an Indiana pension plan. Today ended with the Supreme Court ruling that the new Chrysler LLC is clear to proceed. Jim Press, Vice Chairman & President, Chrysler LLC released the following statement: “We are pleased with the Judge’s decision allowing us to go forward with the realignment of our dealer network. A financially strong, competitive dealership network can increase sales and afford to invest in facilities, in people, in training, and in amenities, with a major focus placed on customer satisfaction. The 2,392 U.S. dealers that will move forward will be integral to the success of the new Chrysler.” Read: “ New Chrysler Emerges...
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For car shoppers, this weekend could be a great time to purchase a Chrysler , Dodge , or Jeep vehicle. Chrysler is forcing the closure of 789 dealers by June 9th (provided there aren’t successful appeals), meaning about one fourth of the dealerships will be looking to liquidate their inventory. Further, Chrysler is offered factory-backed incentives to keep the sales rolling. Of course, it is important to understand that these closing dealers may not be able to provide after-sales support, so you want to be aware of what dealers in your area are retaining their new-car franchise. Likely, the closing dealers will be available for routine maintenance and possibly repairs. Most closing dealers will be shuffling inventory to the remaining 2,392 stores at deep discounts, meaning even those stores will be offering great deals over the next few weeks from their overstocked inventory. We have seen advertised new-car prices showing 25 to 40 percent discounts, promising terrific upfront savings. Of course, these will be somewhat offset by accelerated depreciation. To move the metal, Chrysler is offering zero-percent financing for 60 months through GMAC Financial Services on select 2009 model vehicles...
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Just was General Motors entered Chapter 11 bankruptcy , Chrysler exited from its filing as Chrysler Group LLC. Two months after it entered bankruptcy protection, Chrysler Group emerged from its chrysalis with a firm alliance with Fiat. A key condition for government-assisted Chapter 11, versus liquidation through Chapter 7, was the teaming with Fiat . The Italian automaker will work with Chrysler to offer the award-winning Fiat 500 subcompact in the United States, as well as develop future models, both those retuned from Europe and those specifically engineered for this market. Fiat brings to the table vast global resources, with a product and technology portfolio that dovetails with Chrysler’s thirsty, truck-heavy line-up. With the federal government significantly raising fuel economy standards for 2016, the ready access to small car platforms and high-tech, small-displacement engines will prove essential. Without Fiat, the government felt Chrysler would simply not be able to return to profitability even with appealing models in the pipeline such as the very impressive 2011 Jeep Grand Cherokee and 2011 Chrysler 300. The reality is, Chrysler simply did not have a good, small or midsized...
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The fate of Chrysler LLC is being decided in New York bankruptcy court, where the first day’s proceedings have ended with positive signs for moving forward with an imminent $2 billion sale to Fiat, United Auto Workers, and the Canadian and U.S. governments. With encouragement from the Autos Task Force, Chrysler is looking to rapidly restructure its business into a “new” Chrysler . But before doing so, the court must sort through approximately 340 objections, including those from the nearly 800 dealers who will lose their Chrysler franchises in early June. The swift sale would free Chrysler from $6.9 billion in debt and potentially preserve more than 100,000 auto-related jobs, according to a Reuters report. As Bloomberg.com has outlined, the proceedings are filed with complexities and conflicting view points, as dissenters struggle to have their concerns and objections heard. The proceedings are expected to extend into Friday, when in all likelihood, a green light will be given for this government-favored “new Chrysler” scenario. For car buyers, this continues to be a great time to consider a Chrysler , Dodge , or Jeep product, with the greatest incentives to be found at the 789 cut...
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Even as the details are being sorted out with “Old Chrysler” versus “ New Chrysler ” in the bankruptcy-lead restructuring , Chrysler LLC has submitted three proposals to the Department of Energy (DOE) seeking $448 million to accelerate the development of electrified vehicles. The proposed vehicles to include Dodge Ram 1500 plug-in hybrid-electric vehicles (PHEV), Chrysler Town & Country PHEVs, and Chrysler Town & Country electric vehicles (EV). (See our Chrysler Town & Country minivan review .) The funds were requested from the DOE Electric Drive Vehicle Battery and Component Manufacturing Initiative and the Transportation Electrification Initiative. Through these programs, if approved, the DOE would match funding from Chrysler and its partners for the development of advanced powertrains. With support, Chrysler would build and distribute a test fleet numbering 365 vehicles to aid in developing the powertrains for practical, real-world applications. In addition, Chrysler LLC will deliver 165 Chrysler Town & Country EV cargo minivans for daily mail service in four regions throughout the country. With the government moving to raise the fleet average requirement to 35.5...
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Chrysler filed a motion with the U.S. Bankruptcy Court today to essentially cull 789 dealerships from its herd. On a conference call today, Chrysler LLC executives explained that they sought to cancel franchise agreements with the least successful dealerships, thereby strengthening the remaining 2,392 dealers will be a part of the " new company " being developed. It is expected that the targeted dealers, which account for just 14 percent of the corporation’s sales volume, will be closed by June 9th. Chrysler says that about 80 percent of the remaining dealerships will carry all three brands. Down the road, any of the dealers may be tapped to add Fiat or Alfa Romeo. (Read " Fiat 500: On Its Way .") Due to bankruptcy laws, Chrysler LLC is not required to purchase parts, tools, or vehicles from the shuttered dealerships. Those dealers have a combined inventory of 44,000 vehicles, which Chrysler LLC will facilitate selling to retained dealers. The move will impact hundreds of communities, though Chrysler execs say by targeting small, less successful dealers, they have lessened the impact from the franchise reduction. Since many dealers also sell products from other brands...
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Now that Chrysler has filled for Chapter 11 bankruptcy protection and is moving forward with an alliance with Fiat , its future seems more certain. Time to focus attention on selling cars--essential to keep the money flowing while it builds a new car company . To that end, Chrysler is now offering up to $4,000 Consumer Cash on 2009 model vehicles; $1,000 Owner Loyalty for current Chrysler LLC vehicle owners that is good towards most 2008 and 2009 Chrysler, Jeep, and Dodge vehicles; and up to $1,000 Credit Union Bonus Cash for qualified members who finance their new vehicle purchase through a participating Credit Union. These incentives are valid through June 1, 2009. In addition, given that most dealers have bloated inventories, remember that there is additional negotiation room. The amount of haggling a dealer will do will likely decrease along with their inventory as plants idled during the Chrysler restructuring . So, for those considering a Chrysler, this is a great time to buy. Especially if you’re looking for a memorable Mother’s Day gift. Research Chrysler , Dodge , and Jeep in the new car buyer's guide .
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…starting with an ad campaign. Over the weekend, Chrysler ran an ad campaign in dozens of major newspapers across the country, and it continued the promotion Monday in the Wall Street Journal , The New York Times , and USA Today . The message was simple, announce to America that the company is working hard to rebuild itself. Beneath an image of the 2011 Jeep Grand Cherokee , Chrysler 200C concept , and Dodge EV concept , ran the following: "At Dodge, Chrysler, and Jeep, we’re restructuring the way we do business. We’re committed to being stronger, leaner and more competitive. To help us achieve these goals quickly, we’ve formed a strategic alliance with Fiat. This alliance gives us access to advanced small car technology, enabling us to build high-quality, environmentally friendly, fuel-efficient vehicles. Together, we’re poised to serve our customers and dealers better, with a broad lineup of car and trucks you’ll want to drive. Plus, we still have the best powertrain warranty in the industry, backed by the U.S. Government. At Dodge, Chrysler and Jeep, we’re building a new car company." The print ad will be supported with an on-going print, radio, and television campaign...
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