autoMedia Auto News Blog : Fiat

Future Product Plans: Chrysler, Dodge, Jeep

admin — Mon, 09 Nov 2009 03:23:00 GMT

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...(read more)

autoMedia CARnival 11-06-09: This week in Auto Blogs

Brandy Schaffels — Fri, 06 Nov 2009 13:00:00 GMT

It's the week ending November 6, and we've browsed our favorite automotive blogs all week long to gather the highlights from each. ...(read more)

autoMedia CARnival 8/28/09: This week in the auto blogs

Brandy Schaffels — Fri, 28 Aug 2009 11:25:00 GMT

It's the week ending August 28, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each.

Once again, the biggest news involves the end of the Car Allowance Rebate System (CARS) program AKA "Cash for Clunker" rebates, culminating in 690,114 transactions valued at $2.88 billion, with stories galore on its "wildly successful" outcome. LeftLaneNews reports on some of the downfalls of the program, saying the clunkers' Web site crashed several times, resulting in a bottleneck of applications. Moreover, only about a third of dealers have received their first clunkers check, leaving many dealerships with cash flow problems. Consumer Reports shares the environmental impact, saying the average new car bought with the rebates got 9.2 mpg more than the average clunker traded in, for an annual average fuel savings per driver of 277 gallons of fuel or about $720.

Pizza magnate Papa John Schnatter has finally been reunited with his Camaro. In celebration, he gave away nearly 36,000 free pizzas. Click here to read the detailed story of how Jalopnik helped make it happen -- and if you want, you can even browse the gallery of photos snapped by Camaro owners when they used their car as the ultimate coupon.

You wake up in the morning and suddenly everyone is driving on the "wrong" side of the road. Sound freaky? Well, that is exactly what is going to happen in Samoa on September 7th of this year. All Cars All The Time predicts this move will be an epic fail. The Wall Street Journal seems to agree. We suggest travelers stay away until they get their drivers retrained.

Are we there yet? Jaime Case and Chris Hodges hopped into a Fusion sedan provided by Ford, and took off on a six-week pre-wedding road trip around the country to see friends and family prior to signing their marriage certificate. Well, they've finally tied the knot, apparently the road trip is nearly over, and to celebrate the couple plans to change their names.... to Ford. Jeez, I hope Ford lets them keep the car after all that!

Get this: AutoBlogGreen.com suggests watermelon juice could be the next great automotive fuel, saying there's enough watermelon juice available to brew 2.5 million gallons of ethanol, which would displace up to 15 percent of corn or molasses, cut down on water usage, and supply needed nitrogen to the mix. Seems like the perfect use for the 360,000 tons of watermelons left to rot and spoil each year!

Chrysler and Nissan have decided to part ways, scrapping three joint-vehicle programs originally intended to fill yawning gaps in their respective line-ups. With Nissan officials recently telling TheDetroitBureau.com they were still open to working with their Detroit counterpart, it appears that the announcement was heavily influenced by Chrysler's new parent, the Italian automaker Fiat. It also appears Nissan is the loser in the latest developments. A separate agreement calling on Nissan and Chrysler to share transmission remains unchanged.

AutomotiveTraveler.com has snagged spypix of the upcoming 2011 Ford Fiesta -- only not the little Euro hatchback version we've seen so many Fiesta Agents driving! This article features several remarkably clear road shots of the four-door sedan version destined to arrive in American dealerships in the second quarter of 2010. I'd like one in magenta, please?

We all hate sitting in traffic, and in the Los Angeles area, it's notoriously bad. AutoBlog.com shares the results of a study that demonstrates having a GPS system with real-time traffic can save drivers four days per year and reduce emissions by 21%!

If you're writing a research paper on the history of electric vehicles, then look no further than cleancartalk.com which shares everything you ever wanted to know -- but were afraid to ask -- about the electric car. With detailed info from its origins in the 1830s to modern-day options, this article is good reading for green gearheads.

Mark Tapscott may very well be THE founder of the Carnival of Cars concept, and he had the wisdom to include ME in one of his first editions, nearly three years ago! If you want to keep up with Tapscott's current content, favorite him at Examiner.com

Thanks for joining us for this week's autoMedia.com CARnival! Have you got something of interest you want us to include in a future carnival? Then fill out our online form so we can be notified of your interesting entry to our weekly blog CAR-nival. Check back next week for another installment--until then, have a great weekend!

Brandy Schaffels, Contributing Editor

Chrysler Changes Mind: PT Cruiser Will Live On

Editor — Mon, 03 Aug 2009 21:39:00 GMT

Reversing a decision made earlier this year to kill the PT Cruiser after 2009, Chrysler Group LLC announced this weekend plans to continue production of their retro-style wagon at its Mexico assembly plant.

Chrysler has sold over 1.3 million PT Cruisers in 60 countries since its 2000 debut as a 2001 model. Even though sales have significantly softened during the first half of 2009 - and it has yet to receive a substantial redesign since its launch - the very distinct PT Cruiser has continued to earn awards, model year after model year. In June, the PT cruiser tied with Honda's CR-V for first place in J.D. Power's Initial Quality Survey IIQS) in the compact truck/multi-activity vehicle category.

While changes - if any - for the 2010 PT Cruiser model have yet to be disclosed, Fiat's alliance with Chrysler appears to reveal a partnership that recognizes the PT Cruiser's popularity around the world.

-Deborah Neal, Editorial Director

Like a Phoenix, New Chrysler Group LLC Rises

admin — Thu, 11 Jun 2009 02:32:00 GMT

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," said Fiat CEO Sergio Marchionne, who today was named Chief Executive Officer of Chrysler Group LLC.

Former Chrysler President Jim Press, a Toyota veteran, was named Deputy CEO of the new Chrysler. Beneath him, management is being reorganized to more closely match Fiat with an eye on speeding decision making. Former Chrysler CEO Bob Nardelli, who has served as the public faced for the troubled company, has stepped aside to join Chrysler-parent Cerberus as an advisor.

Mr. Marchionne added, "We intend to build on Chrysler's culture of innovation and Fiat's complementary technology and expertise to expand Chrysler's product portfolio both in North America and overseas. Those Chrysler operations assumed by the new company that were idled during this process will soon be back up and running, and work is already underway on developing new environmentally friendly, fuel-efficient, high-quality vehicles that we intend to become Chrysler's hallmark going forward.

Even with the 789 dealers closed, this remains a great time to buy a Chrysler product, as the remaining dealers in many cases have flooded their lots with the excess inventory. You could jumpstart the new Chrysler, and get a great deal, by shopping your local dealer.

Research Chrysler, Dodge, and Jeep in the new car buyer's guide. Read "Fiat 500: On Its Way."

New Chrysler Emerges from Bankruptcy

admin — Wed, 03 Jun 2009 01:34:00 GMT

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, fuel-efficient car in the pipeline – until now.

The Autos Task Force will serve in an advisory role on the board, though will leave the day-to-day management to Chrysler Group. The Task Force is looking out for its investment, or rather the taxpayer investment, as the U.S. and Canadian governments have a combined 12-percent stake in the new company. The majority share hold is the United Auto Workers health care/retirement program, known as VEBA, with a 68-percent interest.

Through its restructuring, Chrysler ordered that 789 dealerships forfeit their franchise rights by June 9th. In a monthly sales call today, Chrysler management said the standing inventory reduction was going well, and unsold vehicles would be redistributed. In the meantime, there are tremendous deals on Chrysler, Dodge, or Jeep products.

The factories that went idle on April 30th will be running again by late June. The downtime will enable the marketplace to absorb many of the 44,000 cars that had been on the lots of the 789 dealers.

The so-called “bad” assets from the old Chrysler still need to be sold off, or otherwise disposed of, though the process if moving quickly.

The key message here is that the new Chrysler is in business, full swing.

Read "Fiat 500: On Its Way."

Chrysler to Close 789 Dealers – Any Near You?

admin — Fri, 15 May 2009 00:54:00 GMT

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, those may remain in business and conceivably some may continue servicing Chrysler products.

The U.S. Treasury released a statement today underscoring this message:

A month ago, Chrysler faced the real prospect of liquidation, which would have eliminated all 3,200 of the company's dealers. As a result of the successful Chrysler-Fiat partnership and the backing of the President's Auto Task Force, Chrysler is now positioned to move forward with a plan that retains 75% of its dealers – representing 87% of Chrysler sales. Consistent with the Task Force's role in the restructuring process, it was not involved in the specific design or implementation of Chrysler's dealer consolidation plan. The Task Force played no role in deciding which dealers, or how many dealers, were part of Chrysler's announcement today.

Without question, the move does impact everyday people. For consumers, it means the greatest deals on Chrysler, Dodge, and Jeep vehicles ever may be available over the next two weeks.

If you’re in the market for a new vehicle this month, check to see if the dealers in your area are on closure list (pdf).

If you’re a current owner, be aware that future service and repair may need to be conducted at another dealership (check here to see the dealers that will remain) or at an independent shop.

Owner, shopper, or simply enthusiast, wish the dealers well who drew the short straw.

For more information, visit: chryslerrestructuring.com

Research Chrysler, Dodge, and Jeep in the new car buyer's guide.

Chrysler Files for Bankruptcy, Merges with Fiat

admin — Fri, 01 May 2009 01:44:00 GMT

The deadline for Chrysler to deliver a more promising viability plan came due, and with it came dramatic moves that will forever reshape the automaker. Chrysler filed Chapter 11 bankruptcy today, enabling a controlled restructuring that can reduce debt and allow for a rapid rebuilding. The process expected to take just 30 to 60 days. During this time, Chrysler will idle its factories as it puzzles through its near-term strategy and reduces standing inventory, just as General Motors is doing. When the reborn company comes to life, Chrysler Chairman and CEO Bob Nardelli is expected to step aside, taking an advisor role with Cerberus.

A strategic alliance with Fiat was a government condition for continued support, and Chrysler is effectively merging with the Italian automaker, though it has publicly avoided characterizing the partnership as such. Fiat will initially be a 20-percent shareholder, with the potential to take on a larger interest up to 35 percent. The larger piece of the corporate pie will be available only when Chrysler repays its federal loans, ensuring no U.S. taxpayer money is funneled overseas.

Through the merger, uh, partnership, Chrysler will gain access to Fiat technology, platforms, and completed vehicles. As President Obama spelled out in a press conference, this will enable Chrysler to rapidly round out its product portfolio with fuel-efficient models. It is an open question as to how readily Americans will receive quirky Fiat transplants and how long it would be before Chrysler offers co-developed products. In return, Fiat would gain manufacturing capacity in the States, as well as a distribution and dealer networks. (Read "Fiat 500: On Its Way.")

The U.S. and Canadian governments together will have a 10-percent stake in the new company, until all debts are paid back.

The majority shareholder will be the Voluntary Employee Beneficiary Association (VEBA) with 55-percent ownership, making it effectively an employee-owned company. The irony here is that many fingers pointed at the union workers’ wages and benefits package as limiting Chrysler’s ability to compete with foreign automakers.

In another interesting twist, GMAC will be the preferred lender for Chrysler dealer and consumer business, as Chrysler Financial is caught with its own troubles.

Chrysler danced on the edge of oblivion, but now has the potential to reinvent itself in rather exciting ways. With its future more secure, what Chrysler needs now is to regain consumer confidence and sell cars. Remember, as it goes through the restructure, the federal government has pledged to provide a warranty backstop thereby reducing risks to car buyers.

Looks like the lights will stay on. Swing by your local dealer and give him a high five. If you're in the market for a Chrysler product, remember the deals may dwindle comensurate with the dealer inventory.

Research Chrysler, Dodge, and Jeep vehicles in the 2009 new car buyer’s guide.

Read "Government Action to Aid Chrysler, GM" and "Obama Gives Tough Love to Chrysler, GM."

Government to Chrysler: Prepare for Bankruptcy

admin — Fri, 24 Apr 2009 00:58:00 GMT

That’s right, the dreaded “B” word. The Treasury Department has requested Chrysler prepare for a Chapter 11 bankruptcy filing as early as next week, according to a report by The New York Times. President Obama had given tough love to Chrysler, stating their last proposal was not convincing and giving the company 30 days to try again, with its chance for success hinged upon a partnership with Fiat. (General Motors was given a 60 day extension.) Meanwhile, the government would provide continued assistance to the troubled American automakers.

With the deadline looming, Chrysler continues to face challenges, including a once-promising Fiat partnership that now looks less certain. In fact, Fiat has been quoted saying the chance for a deal is 50/50 and dependent on labor reductions from the UAW and the CAW, in Canada. A letter from Chrysler CEO Bob Nardelli received a harsh reaction from the CAW, with the Canadian union leaders setting it on fire.

Ultimately, the inability for Chrysler to manage its corporation and partners may be bankruptcy. In reaction to The New York Times report, Chrysler released a statement:

"As we move forward in this process, we believe it’s important to keep all options open. Chrysler will continue to work through the end of the month, based on the direction given by the Presidential Auto Task Force, to secure the support of the necessary stakeholders and reach a successful conclusion that the Administration and U.S. Treasury deems appropriate."

Many numbers and scenarios have been flying around the Web, but it is all speculation until Chrysler meets its April 30th deadline and the Treasury reviews the submission. (General Motors has until June 1, and it has already stated it will miss an upcoming $1 billion loan payment obligation.)

The auto industry drama could not be more exciting, or terrifying. Stay tuned…

Read "Fiat 500: On Its Way."

Chrysler Watch: Fiat Deal 50/50

admin — Mon, 20 Apr 2009 01:01:00 GMT

Tensions mount as Chrysler and General Motors race to meet the imminent deadlines for satisfying government overseers that these troubled corporations can reverse their fortunes. Chrysler has seen significant tensions the past few days, as CEO Bob Nardelli said the automaker would concede control of its board if it completes the alliance with potential Italian partner Fiat. The U.S. government, along with Fiat, would appoint a new board of directors, according to reports from Reuters and others.

Stumbling blocks remain to the alliance. Notably, the United Auto Workers and Canadian Auto Workers must agree quickly to further reduce labor costs. As it stands, Fiat officials have been saying that the chances for the deal are only 50-50. Not good odds.

Painful as concessions may be, we hope the unions and others involved can reach an agreement to see the deal move forward. To do otherwise would have repercussions well beyond Auburn Hills.

Shame, as Chrysler has good things in the pipeline, from its significant quality improvement effort now underway to its promising 2011 Jeep Grand Cherokee. Our fingers are crossed…

Read "Government Action to Aid Chrysler, GM" and "Obama Gives Tough Love to Chrysler, GM," plus "Fiat 500: On Its Way."

Obama Gives Tough Love to Chrysler, GM

admin — Tue, 31 Mar 2009 01:52:00 GMT

Chrysler, General Motors, and indeed the entire automotive industry anxiously awaited today’s announcement from President Obama, expecting further aid and assistance. However, in a memorable speech Obama said neither automaker met the requirements to prove viability. Gulp.

The administration has given Chrysler 30 days to further restructure and secure its partnership with Fiat, a move seen by Obama as essential. GM has 60 days to aggressively reshape its business. Both corporations will be provided with enough additional working capital to keep the lights open during that time.

Obama said, “We cannot, and must not, and we will not let our auto industry simply vanish. This industry is like no other -- it's an emblem of the American spirit; a once and future symbol of America’s success.”

The analysis by the auto task force paints grim picture, stating that the Chrysler product portfolio is not competitive, with weakness in quality and fuel efficiency. Further, the automaker lacks the scale to engineer and build vehicles at a profitible volume, with limited overseas sales limiting its global reach.

The task force reported that GM is currently burdened with underperforming brands, nameplates and an excess of dealers. Further, its product mix depends on profit from trucks and SUVs, rather than smaller, fuel-efficient vehicles now in favor. It specifically cited that the Chevrolet Volt is “too expensive to be commercially successful in the short-term.”

On Chrysler, Obama said, “The situation at Chrysler is more challenging. It's with deep reluctance but also a clear-eyed recognition of the facts that we've determined, after careful review, that Chrysler needs a partner to remain viable. Recently, Chrysler reached out and found what could be a potential partner -- the international car company Fiat, where the current management team has executed an impressive turnaround. Fiat is prepared to transfer its cutting-edge technology to Chrysler and, after working closely with my team, has committed to build -- building new fuel-efficient cars and engines right here in the United States. We've also secured an agreement that will ensure that Chrysler repays taxpayers for any new investments that are made before Fiat is allowed to take a majority ownership stake in Chrysler.”

On GM, Obama said, “GM has made a good faith effort to restructure over the past several months -- but the plan that they've put forward is, in its current form, not strong enough. However, after broad consultation with a range of industry experts and financial advisors, I'm absolutely confident that GM can rise again, providing that it undergoes a fundamental restructuring.”

Tough love indeed, though there is a message of hope—an Obama trademark. Both automakers face immeasurable challenges in the weeks ahead.

What can you do to support the automakers? Buy a car. Seriously.

Research Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, and Saab, or Chrysler, Dodge, and Jeep in the 2009 new car buyer's guide.

Chrysler Plans Small Cars From Partners

admin — Thu, 29 Jan 2009 03:54:00 GMT

With all the crazy talk of California leading an initiative to elevate emissions standards, and thereby increase fuel economy requirements to Prius-like levels, Chrysler would seem to be particularly vulnerable. After all, the automaker has a dearth of small, fuel-efficient models, and a slew of thirsty, heavy, V-8 vehicles. If Chrysler can stretch out its federal aid package long enough, the company may be rich in thrifty desirable models in 1-2 years.

From its new 35-percent shareholder and BFF, Chrysler will gain access to several, sleek Fiat models. Reports indicate the award-winning Fiat 500 three-door is U.S. bound (shown here), as well as a next-generation five-door Panda. There is talk of a slightly larger model to join the Alfa Romeo MiTo. Continuing up the range, Chrysler is expected to manufacturer is own Caliber replacement spun off a Fiat platform, with a larger version being used for the Sebring and Dodge Avenger replacements.

In addition, Chrysler has continued to nurture its relationship with Nissan. This arrangement will provide Chrysler with a rebadged Versa. In return, Chrysler will build the next-generation Nissan Titan off the Dodge Ram platform. As a bonus, Nissan will develop a small hatchback based on the cool Dodge Hornet concept.

And let’s not forget, the Chrysler ENVI group is preparing an electric-drive model for 2010, with more to follow. (Read "Shocking: Chrysler to Sell Electric Vehicles.")

We hope Chrysler can hang in there, as its pipeline is filling with compelling new models. That an about 54,000 employees are counting on it.

Research Chrysler, Dodge, and Jeep vehicles in the 2009 new car buyer’s guide.

Saved! - Chrysler and Fiat Form Alliance

admin — Wed, 21 Jan 2009 02:57:00 GMT

Fiat swooped in and effectively saved Chrysler with the announcement of a global alliance that will see the automakers share platforms, powertrains, and vehicles. In the cash-less arrangement, Fiat will gain a 35-percent stake in struggling Chrysler. In return, Chrysler will gain access to the types of products and technology its line-up sorely needs to adjust to the changing economic realities. Together, the companies now have the potential to be a powerful international competitor. (Read "Fiat 500: On Its Way.")

Bob Nardelli, Chairman and CEO of Chrysler LLC, said, "This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the Government Loan. The partnership would also provide a return on investment for the American taxpayer by securing the long- term viability of Chrysler brands in the marketplace , sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs."

That’s right, Chrysler still seeks the $4 billion federal loan, however the company now has a much brighter future than it looked last week. Indeed, even at the 2009 Detroit auto show, Chrysler couldn’t conjure much hope with its lackluster product display. Now, thoughts of Americanized 500s, Pandas, Puntos, and Qubos sounds downright exciting and right on target.

Fiat will gain ready-made access to one of the world’s largest automotive markets, the United States. After years of promising Alfa Romeo would make a return, Fiat now has access to under-utilized factories and a dealer network that can be cultivated for the imminent Italian renaissance. In addition, Chrysler and Fiat can collectively save billions through shared product development and large-scale supplier deals. (See our modern classic report on the Fiat 124.)

The United Auto Workers also issued a statement showing their strong support for this arrangement.

The alliance will require government approval, though given the circumstances, that is expected to be a mere formality as Chrysler gets back on track.

Raise a glass of vino for Chrysler!

Read Chrysler’s original proposal presented to Congress. Research Chrysler in the new car buyer’s guide.