Archive for Chrysler

Before Daimler got rid of Chrysler, there was a team in DaimlerChrysler Malaysia (now known as Mercedes-Benz Malaysia) studying the possibility of introducing the Chrysler brand here in Malaysia, and other marques within the Chrysler group. If that happened, one of the vehicles that could have found its way onto our roads would be this.

Introduced at the 2007 Frankfurt Auto Show, the Dodge Journey only went on sale to the public in March this year in the US, and soon in Europe as well. The Journey is based on an extended D-segment Dodge Avenger platform and its wheelbase measures a long 2891mm, providing excellent interior room for its three rows of 7 seats.

Under the hood is a choice of engines including the 173 horsepower 2.4 liter GEMA engine that is also found in cars like the Hyundai Sonata and Mitsubishi Outlander, a 235 horsepower 3.5 liter V6 and a 190 horsepower 2.7 liter V6.

It’s trademark Dodge muscular and boxy styling gives people an alternative to all the more sedate-looking soccer mom MPVs out there. Threatening to ruin ride comfort are large 19 inch wheels with low profile tyres. The car is front wheel driven by default but all-wheel drive is available.

Look for more hi-res photos after the jump.

Click here to read the rest of Dodge Journey 7-seater MPV

Fans of Chrysler’s Dodge Hornet 2006 Geneva concept should be excited now as there is new indication of the company’s continued interest and intention to produce a production version of the compact car.

Chrysler vice president for international purchasing Thomas Hausch says that Chrysler is working intensely on the Dodge Hornet study, and will announce something on the car in the future. This will probably happen sometime in 2010.

The question is, will it be a Dodge or a Chrysler? Hausch mentioned that the possibility of a small Chrysler positioned below the Chrysler Sebring should not be ruled out.

Related Posts:
2006 Dodge Hornet Concept (with video)

Chrysler and Nissan has entered a rebadging deal, which involves Chrysler selling the Nissan Latio (called the Nissan Versa in North America) with a Chrysler marque in South America. I’m not sure if the Latio/Versa/Tiida will be badged as a Chrysler or a Dodge.

Chrysler already has does rebadging in South America - Dodge-badged Hyundai cars. This is Nissan’s second cooperation with Chrysler, with the first being a transmission deal - Nissan’s Jatco has been supplying Chrysler with transmisisons since 2004.

Next up: Chrysler assistance for next generation Nissan pickups perhaps?

Related Posts:
Nissan and Chrysler in technical collaboration talks
Chery to build small car for Chrysler
Chery and Chrysler discusses two small car projects
Chrysler and Chery sign small car letter of intent
Chery to build Dodge subcompacts for DCX

Nissan and Chrysler are current exploring the possibilities of a technical collaboration to help each other with new vehicle development. Nissan is interested in leveraging on Chrysler’s full-size truck expertise, while Chrysler is interested in Nissan’s appealing small cars.

The Nissan Versa is the best seller in the American subcompact car class, and Chrysler has not had much success in its talks with Chinese manufacturer Chery for the latter to build a car for them as according to Chrysler, Chery did not have a model that met its standards yet.

Related Posts:
Chery to build small car for Chrysler
Chery and Chrysler discusses two small car projects
Chrysler and Chery sign small car letter of intent
Chery to build Dodge subcompacts for DCX

Source

Chery S12 to enter South American market

After a short pause because of the recent change in ownership over at Chrysler, the talks between Chery and Chrysler on their small car collaboration has resumed.

Two cars are being discussed - one is a Chery model that will be badged as a Chrysler in the US market. CKD kits of the Chery S12 will be shipped to Mexico and South America, and the kit will be assembled there for sale in those markets. The Southern American states share similar fate to South East Asia, we always get the boring stuff.

For other markets where something more premium is needed, Chrysler and Chery intends to produce a production version of the Dodge Hornet concept car in China, both engineered and manufactured at Chery’s research center and plant in Wuhu, Anhui.

Production could begin in 2010.

Source

Chery wants to re-examine it’s deal with Chrysler to develop Chrysler-branded small cars for numerous markets, said Zhang Li, Chery Automobile Co Ltd’s general manager. The project has been halted for the moment and awaits renegotiation of the agreement.

This is because Chrysler has recently changed hands, now belonging to private equity firm Cerberus Capital Management LP thanks to last week’s US$7.45 billion deal. Chrysler spokesperson Mary Gauthier said Chrysler’s global growth plans remains the same, and the new owners Cerberus has not changed any of those goals.

I suppose Chery just wants to play it safe and make sure Cerberus is fully aware of all details of the plan.

Related Posts:
Chrysler goes to Cerberus for US7.45 billion
Chrysler and Chery sign small car letter of intent

DaimlerChrysler has finally dumped Chrysler to private equity group Cerberus Capital Management for US$7.45 billion, or 5.5 billion euros. DaimlerChrysler will still retain 19.9 pecent of Chrysler, which means perhaps a name change will not happen anytime soon. The Cerberus stake is the entire 80.1 percent that’s being dumped off.

DaimlerChrysler CEO Dieter Zetsche said DCX has no plans to sell it’s remaining 19.9 percent of Chrysler, adding that it wanted to maintain close ties with Chrysler.

DaimlerChrysler CEO Dieter Zetsche was “grilled” at a shareholder’s meeting yesterday, for not moving fast enough to dispose of Chrysler, seen as a patient leeching off the profitable German half of the DaimlerChrysler supposed “merger of equals.”

Lawyer Hans-Richard Schmitz represented the shareholders and issued this statement on behalf of the shareholders: “Chrysler is the worst problem in the group. It has been a patient for so many years and a burden for some time. I dont understand why you are so hesitant. The only thing to do is execute a separation. You are underestimating how poisonous this pill can be for your company.”

Besides Schmitz, more shareholders came forward personally to criticize Zetsche during the meeting. “For nine years you have been sitting on this scrap heap called Chrysler. What have you been doing for nine years? Nobody has learned anything. To call this a sale is a euphemism. If you pay for the garbage man to empty the dust bin, then does that mean you have sold something to the garbage man?” said Ekkehard Wenger.

Previously Ekkehard Wenger and another shareholder Leonhard Knoll proposed a name change of the company back to DaimlerBenz because the name Chrysler brought a negative image to the company. DCX’s board responded by saying that was not a valid ground to change the name of the corporation.

Other shareholders have blamed the failed partnership on cultural differences. “Germans care about quality and technical expertise. Americans only want money. They dont care about the craftsmanship of the product. This is an arrangement that must end,” said Georg Nuemeier, also a DCX shareholder. “Ten years should have resulted in a better return. The fact is just that the marriage never worked,” said shareholder Klaus Fiereck.

Related Posts:
Shareholders want Chrysler name dropped from DaimlerChrysler

Two DaimlerChrysler Shareholders, Ekkehard Wenger and Leonhard Knoll have submitted a name change proposal to the DaimlerChrysler board of directors, detailing their wishes for the company to drop the name Chrysler regardless of whether Chrysler gets sold off or not. “If a proper separation cannot be effected within one year, this would only serve to underscore the need to remove this affliction on the image from the corporations name,” said Wenger and Knoll.

However DaimlerChrysler’s board opposes the change, saying there is no grounds for the name change proposal. “The DaimlerChrysler name is established all over the world. There are no grounds to change the name of the corporation,” the company said in a statement.

Nevertheless, a vote on the name change will be held at the shareholder’s meeting in April. DaimlerChrysler was previously known as Daimler-Benz until the merger with Chrysler in 1998. From what was supposed to be a merger of equals, Daimler-Benz ended up babysitting Chrysler through the years.

On the matter of who’ll Chrysler end up with, it seems that private equity groups are willing to pay alot more money than General Motors and automotive-related firm Magna International. The highest bid is currently at US$5 billion, while Magna is offering US$4 billion. Chrysler posted a US$1.5 billion loss last month.

However, employees do not want Chrysler to fall into the hands of a non-automotive owner. “We wouldn’t support a solution such as a private equity firm that would cut out choice bits. We prefer if a manufacturing company like another automaker take control of Chrysler in the event of a sale,” said Helmut Lense, one of the 10 employee representatives on DaimlerChrysler’s 20-member supervisory board.

Lense is also against the Chery deal. “Chrysler won’t improve its image by selling what are effectively Chinese cars,” he said. Lense also thinks a sell-off is not really necessary, as a revamp of Chrysler could be done by doing a total revamp of it’s passenger car model line-up. Chrysler has been over-reliant on truck sales, which have taken a downturn the past 2 years. One solution proposed would be for Chrysler to take over the Mercedes Benz A-Class and B-Class, leaving Mercedes to focus on more premium vehicles.

Other than the obvious buyout by another car company - General Motors, two non-automotive companies have been interested in Chrysler - the Blackstone Group and Cerberus. Investment firm Blackstone is currently already in the auto industry, and has US$125 billion in the bank. It currently has 58% ownership in TRW and has a stake in American Axle. Cerberus is currently looking at Delphi, and already own 51% in GMAC.

Blackstone has been given access to confidential Chrysler data to determine whether the firm is worth buying or not, while Cerberus has hired Chrysler’s former COO to advise it on a possible bid. This former COO is none other than Wolfgang Bernhard, who was involved in turning Chrysler around to a short-lived earnings rebound a few years back, but somehow got booted off the team in 2004. He then joined Volkswagen, and left in January 2007.

Other companies said to be interested in possibly taking up stake in Chrysler include Magna International and General Motors.