Chrysler has decided to grab the axe and split Dodge right in half, severing the ties between Dodge’s Ram truck business and the rest of the company that makes passenger vehicles. Apparently this will allow Dodge to “protect and develop the unique nature of the product offerings within the Dodge brand”, according to Chrysler boss Sergio Marchionne, who is also the CEO of Fiat.

The Dodge Ram truck business will be renamed simply RAM, and will be headed by Fred Diaz. “Dodge Car”’s new head will be Ralph Gilles. Chrysler’s new CEO and marketing head will be Olivier Francois, another man from Fiat where he plays a double role as Fiat marketing chief and the head of the Lancia brand.

Chrysler now has two predominantly truck-based brands – RAM and Jeep. The Dodge Ram is currently in its fourth generation called the Dodge Ram 1500, and is available in various 2-door and 4-door cab bodies.

It’s powered by a choice of a 5.7 liter Hemi V8 producing 390 horsepower and 552Nm of torque, a 4.7 liter Magnum V8 making 310 horses and 447Nm of torque, or a 3.7 liter Magnum V6 making 215 horses and 319Nm of torque.

Dodge also has the smaller Dodge Dakota and the Dodge Durango based on the Dakota. I guess it would make sense for these to follow the Ram to the new RAM brand.

Related Posts:
Dodge Ad Video – Ram Rash!

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

There are currently three different sizes available – 1.8 liter, 2.0 liter and 2.4 liter. In Malaysia, there are a few cars that use engines derived from the GEMA project – the 2.0 liter motors in the Lancer and Lancer Evolution X, and the 2.0 liter motors in the Hyundai Sonata, Kia Optima and Naza Rondo.

Chrysler says it intends to replace its GEMA engines with new small engine technology it will gain access to from its new Italian partner Fiat. But interestingly, despite Chrysler stating an intention to replace its GEMA products with Fiat products, Chrysler is the one who has ended up with full ownership of the GEMA plant. Mitsubishi and Hyundai have just sold their stakes to Chrysler. It is likely that the plant will be converted to a plant making Fiat engines in the future.

Technology bought to GEMA by an individual company will remain the intellectual property of that company, so Hyundai and Mitsubishi will likely be able to continue using their Theta/Theta II and 4B series of engines respectively.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

Here comes the killer – Chrysler’s lawyers from Jones Day have asked for special priority for their fees to be paid. University of Pennsylvania law professor David Skeel says he has never heard of any lawyer ask for this in a bankruptcy case as they normally don’t take cases where there is little chance of being paid.

Skeel suspects Jones Day are not optimistic about a payment, and because they know what is going on, that is very scary indeed.

Source

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

Well, the conditions for Fiat to take up a stake with the now bankrupt Chrysler has been fulfilled, and Fiat has been quick to look to something else in order to hasten the move towards consolidation of the auto companies during this recession.

Many have predicted that there will only be a few automakers left after this slump, with the rest either eliminated or merged. Datuk Syed Zainal’s suggestion for Proton to merge with Perodua a couple of weeks back would put Proton under the Toyota umbrella via Perodua’s Daihatsu shareholding, which is in turn owned by Toyota.

Lancia, Alfa Romeo, Fiat, Vauxhall and Opel could share B and C platforms

Anyway back to Fiat and the New Chrysler – a third piece of the puzzle that Fiat is said to be interested in acquiring is GM Europe, which covers Opel, Vauxhall, and other GM European operations. The resulting company would be a giant with annual sales of 6 to 7 million cars, which is claimed to be similiar to how much the Volkswagen Group puts out. Saab is pretty much a separate thing, and at least 10 parties are interested in acquiring them at the moment, according to Saab spokersman Eric Geers.

The new company is temporarily given the codename Fiat/Opel and is described by Fiat head Sergio Marchionne to be a “marriage made in heaven” as Fiat and Opel could consolidate their B and C segment cars to use the same platforms, while Fiat continued with its small A-segment platform and Opel’s D-segment platform. Apparently Fiat offered 1 billion Euros for Opel, but GM considers the amount too small for the moment. No updates if any other follow-up offers were made.

Volkswagen’s platform-sharing success is an inspiration to all

But of course whenever there’s any news to do with GM you have to listen to what their unions have to say. Opel senior labor leader Klaus Franz says if the Fiat and GM Europe merger does happen, between 9k to 10k jobs may be lost via factory closures and other restructuring. He then accused Marchionne of trying to build a global carmaker financed with German and American taxpayer money.

Volkswagen’s CEO Martin Winterkorn also warned that achieving and maintaining real synergies between multiple brands while increasing volumes and lowering costs is a very difficult thing to do. He added that Volkswagen’s platform-sharing strategy started all the way back in 1992 and it was alot of hard work and planning for it to be the success that it is today.

And Fiat and GM have already been in some sort of alliance from the year 2000 to 2005, which ended in GM paying over US$2 billion to get out of the arrangement because it was not going very well. At that time Fiat was burning cash at a rate of nearly US$2 billion a year, accumulating $14 billion in net losses during the 5 year period. It was the time of the Fiat Stilo which went nowhere, and a Fiat Punto that shared components with an Opel Corsa.

Whatever happens, it’s really one thing to build a huge empire that could be the second largest carmaker in the world and perhaps the largest in the future, but another to structure and manage it properly once formed. Just look at GM and its mess of brands. You could end up flourishing like the Volkswagen Group or just another GM or DaimlerChrysler.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

According to a published report by Reuters, struggling American auto makers General Motors and Chrysler may end up getting funds from private institutions, if the U.S Government decides not to provide further funds to both companies, that will then force the auto makers to file for Chapter 11 which basically mean that both companies will go into restructuring, to become viable businesses.

A number of external advisers to The Treasury are rumored of trying to secure the funds from private institutions, which will be needed to restructure both companies. The amount which is rumored to be about U.S $ 40 billion, and to be backed or guaranteed by the government would also be used to pay back the U.S $ 17.4 billion the government initially lent General Motors and Chrysler late last year.

This means that the U.S Government would not tap into “the people’s” money to give a helping hand to both auto makers. However, this brings us to the next question; will these private institutions be able to extend the above mentioned amount during such uncertain times? If both companies file for Chapter 11, they would also be temporarily protected from creditors.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

Chrysler has unveiled their business restructuring plan for submission to the US government in order to quality for the rest of their bailout money. The total money asked for us now US$9 billion, up US$2 billion from the original US$7 billion amount, of which they have already received US$4 billion. Anyway that is not the point, what we’re here to look at is how they plan to integrate Fiat models into their product line-up.

Chrysler will be grabbing 9 models for the US market together with Fiat’s Multi-Air engines (FIRE and FAMB), commonrail turbodiesel engine technology and a dual clutch transmission. Chrysler will be able to supply Fiat with the Dodge Journey, the GEMA world engine with displacements between 1.8 liters to 2.4 liters, and the Phoenix family 3.6 liter V6 engine. The 9 Fiat models include models that will be sold as their original brands which are the Fiat 500, the Alfa Romeo Mito, the Fiat Punto, the Alfa Milano and Giulia (149 and C-EVO based 159 replacement), and an unnamed Alfa crossover.

The other three will use Fiat underpinings but will be Chrysler-branded vehicles: a B-segment 5-door hatchback, a sedan based on the 159’s C-EVO platform, and a larger vehicle based on the D-EVO platform.

Of course whether this will all happen or not depends on whether Chrysler gets the bailout money. Fiat will only confirm its on board with a share take-up (for free!) if that happens.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

Chrysler and Nissan originally planned to expand their current cooperation of marketing the Nissan Versa in South America as the Dodge Trazo with another two cars – another Chrysler-designed Nissan (Japanese)-built small car (dare we say this might be the Dodge Hornet?) and a full-sized Nissan pick-up based on a Chrysler (next gen Nissan Titan). But right now in face of a depressing economy and unfavorable dollar to yen exchange rates, that plan has been put on hold. The Versa project will go on as planned.

Other than the Versa, there are also other third-party sourced small cars sold there, such as the Hyundai Atos and the Hyundai Accent, sold as the Dodge Atos and Dodge Attitude respectively. Word is that the Versa-based Trazo will replace the Attitude as Hyundai has officially entered the Mexican market.

The word is that the cancellation/postponement of the other two vehicle projects have nothing to do with the recent involvement of Fiat in the American company, but it’s just that the projects were a deal done during better times, which unfortunately have ended what feels like a long time ago.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

After the marriage and the short “family planning” course, Fiat and Chrysler have unveiled details on their new American family. 7 new cars will make their way into the US market, four with Chrysler brands and three with either Fiat or Alfa Romeo badges.

The Chrysler-badged cars could stretch all the way from the A-segment up to the D-segment. Something based on the Fiat Panda/500 platform (also used by Ford to underpin their Ford Ka) would give Chrysler the city car they need. The B-segment will be served by the Grande Punto/Mito platform. A C-segment car will utilize Fiat’s C-Evo platform, which could replace the Dodge Caliber.

Finally, a D-segment car would use a stretched version of the mentioned C-Evo platform to replace the Chrysler Sebring and the Dodge Avenger. This apparently fits well into Chrysler’s vehicle roadmap according to Chrysler executive VP Frank Klegon, as Chrysler does not have an A or B-segment vehicle and their C-segment Dodge Caliber is due to be replaced soon.

The Fiat/Alfa Romeo branded cars are likely to be hits such as the Fiat 500, the Alfa Romeo MiTo, and a new vehicle based on the C-Evo platform for the C-segment which could end up being the Alfa Romeo “149″ (successor to the aging 147).

Chrysler will also get access to Fiat’s Fire T-JET small displacement engines (1.4L to 1.8L). If I’m not mistaken, Chrysler’s smallest engine family right now is the GEMA engine, something it gained from DaimlerChrysler times. The GEMA family ranges from 1.8 liters (4B10) to 2.4 liters (4B12), and Chrysler uses these (including a turbocharged 2.4 liter) in cars like the Dodge Caliber (photo shown above).

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

The other big Detroit automakers also have/had movie deals. Notice the many Ford cars in the last two James Bond movies and the new Knight Rider, and the GM placements in the Transformers movie.

I checked out the trailer and didn’t notice any Chrysler cars. You can watch it yourself after the jump.

Video: Terminator Salvation Trailer

Video: Terminator Salvation Short Trailer

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

Fiat will also allow Chrysler access to its distribution network in areas that are key for growth, and you could probably assume Chrysler would be the way for Alfa Romeo to get back into the American market. The word is that the Italian company plans to increase this 35% up to 55% over time. Fiat will also assist Chrysler with the viability plan it needs to support to the U.S. Treasury. And apparently the 35% deal does not involve any money. In return for the platforms and management consultancy help with restructuring, 35% of Chrysler will be handed over to Fiat for free.

The other two Detroit companies already have suitable platforms and powertrains to enter the European (Eastern Europe in particular) and Asian markets. GM has Daewoo while Ford has always built decent cars for the European market in the first place. This announcement fills that missing piece in the puzzle of how Chrysler plans its turnaround. It already has existing deals with Nissan mainly for Latin America, and a failed partnership with Chinese automaker Chery, but nothing like this new Fiat deal.

The last time Fiat and Chrysler had alliance talks was in the early 1990s, but that did not go anywhere, and many blame that on disagreements between Lee Iacocca and Bob Lutz, who is now at GM. Then a Chrysler exec, Bob Lutz had likened Fiat to “a bride lying on her deathbed.” Well Mr Lutz, Fiat has turned itself around and both the company you used to work for and the company you are looking for are going around asking for multi-billion dollar bail-outs.

I wonder what happened to the supposed upcoming merger between PSA Peugeot Citroen and Fiat, as reported by an Italian newspaper. Are we looking at a new PSA-Fiat-Chrysler trinity in the future?

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

Chrysler is said to be mulling introducing a small pick-up truck based on a monocoque car chassis to slot in below its large ladderframe trucks. Such a vehicle would allow Chrysler to improve its Corporate Average Fuel Economy standards, as the more fuel efficient small truck would compensate for the large guzzlers at the top of the line.

What immediately comes to mind is a pick-up truck based on the Nissan NP200 pickup, which was itself based on the Dacia Logan pickup. Chrysler already has a partnership with Nissan, who supplies Chrysler with compact vehicles to sell under the Dodge brand in Latin America. For example, the Nissan Latio is sold under the Dodge brand as the Dodge Trazo with little changes, not even a major adaptation of the Latio’s grille to match the Dodge corporate nose.

While we’re at it, they really might as well look into replacing the Dodge Dakota with a rebadged Nissan Navara (artist’s impression after the jump), like Suzuki has done with the Suzuki Equator.


Click for enlarged image

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

So you’ve just got US$4 billion in bailout money. What do you do? Do you immediately get to trying to turn your company around, cut costs, boost sales, etc? Well no. Not if you’re Bob Nardelli and the bunch of monkeys working under him.

One of their first moves are to blow several hundreds of thousands, perhaps even up to a million US dollars on full-page ads in mainstream American newspapers, including USA Today and the Wall Street Journal. A full page ad in the WSJ can cost between $206,000 to $264,000 while a similiar ad in the USA Today costs between $112,000 to $217,000. Of course, this money probably has already been paid for in advance via a bulk buy for the whole year.

But still, even if the taxpayer treasure trove raiders wanted to thank the public for the money (which apparently more than half the Americans did not agree to), what they could have done is write a letter to the editor’s mailbox or something, I’m sure the papers would have got it published considering how Chrysler probably regularly takes up ads for its cars. Or maybe call a press conference. Haven’t they learned by now how to get coverage through press management, or is throwing random amounts of money at problems their lazy way of solving things? Their PR people should have seen these public sentiments from miles away!

Here are some of the angry repercussions found written in Chrysler’s blog:

Mr Nardelli, Fire your PR and advertising teams and execs immediately. We the People did not want to see any more ads and money wasted on ads, be it from Chrysler, et al, or from your own pocket. You should have put up a website thanking the people and just submitted it to various online news aggregators for free. Once again, I am pained to see you are demonstrating a lack of common sense and fiscal responsibility.

First of all, do you need to spend your precious dollars on expensive newspaper space? Second of all, it’s hard to say “America” is really responsible for granting the bridge loans. One survey said that 61% of Americans were against it.

Your resignation and the resignations of senior executives who have mismanaged the business would have been much more appropriate.

Dear Mr. Nardelli and the “over one million people who depend on Chrysler” – You’ve got some nerve to thank us for our forced “investment” when we didn’t want it to happen in the first place. Isn’t forced or coerced investment akin to robbery?

Mr. Home Depot has now shown that he can take extravagance to another extreme high. Why in the world are you thanking people that didn’t want this. You need to spend the money you spent on this ad to bailout one of your line workers whose house is about to go into default.

I’m speechless. And I’m saddened that a corporate management team is so inept at understanding public opinion. Some advice: issue a press release stating that you regret that you made a mistake using taxpayers’ money in this manner.

This ad just goes to show that you and your company has not learned anything, and like the rest of the US I am upset. This opportunity was squandered, by you and your incompetance. For the sake of my tax dollars I hope you succeed with a restructure like the late 70s early 80s when you received your first bail-out. However, with the poor decisions of this ad I forsee a bad investment on the horizon by the US Government.

Obviously nothing has changed. Chrysler is still making stupid decisions by wasting its stolen taxpayer money on useless ads. I will never, ever even consider buying a Chrysler.

What a great way to spend the taxpayer money!!! Spend hundreds of thousands if not a million to put full page ads in news papers all over the country. The NYT add alone cost over $200,000!!! I will never buy a Chrysler vehicle!! You guys suck!!

Way to blow hundreds of thousands of dollars on a useless ad campaign that will surely only worsen your public image. We weren’t buying your cars before because they are all gas guzzling, unreliable, uninteresting cars that look like they were styled by the coleman plastic cooler division, inside and out. So then you steal our money through the government so you can waste more of it on useless ads, and you have the audacity to remind us all about it. Go to hell Chrysler.

Sharp words, but I bet all those billions of dollars are a quick cure for the pain. What a way to end 2008! Happy New Year people!

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

Chrysler co-President Jim Press is suggesting that Chrysler could become a “boutique enterprise” similiar to the BMW and Mercedes-Benz, premium carmakers of Germany. Yes, Chrysler could become the Mercedes or BMW of America! He even likened the new 2009 Dodge Ram 1500 to what a Mercedes-Benz pickup truck would be like!

Such confidence, he must have forgotten that Mercedes-Benz’s parent company Daimler AG had only freshly ejected Chrysler from its so-called DaimlerChrysler marriage of equals. Chrysler had been dragging DaimlerChrysler down for so long and Daimler management received endless grilling from shareholders for keeping the “alliance” up for as long as they have.

He continued on to say that GM and Ford are making basic cars and “gingerbreading” them to premium while Chrysler makes premium cars from the ground-up. He added that the 2010 Jeep Grand Cherokee prototype has the “most rigid body and the best suspension he has ever seen”.

Source

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

The amount to be given to GM and Chrysler (Ford doesn’t need the money apparently as they build cars that people actually want to buy, thanks to their extensive European involvement) totals up to US$17.4 billion. US$4 billion will go to Chrysler this month and GM will get the same this month, with the remaining US$5.4 billion set to fall into their hands next year pending the release of the other half of the US$700 billion by the congress.

George Bush says the bailout was because he and the American people did not want the indigenous auto companies to fail, and he also did no want to hand over the administration over to Barack Obama next year with the auto industry in shambles.

The two companies have until March 31st 2009 to become “financially viable”, otherwise the loan will be recalled and all funds are to be returned to the U.S. Treasury. In this case, financially viable is defined to be “having a positive net value, taking into account all current and future costs, and can fully repay the loan.”

Other terms and conditions include: firms must provide warrants for non-voting stock, firms must accept limits on executive pay and eliminate perks such as corporate jets, debt owned to the government would be placed at higher priority than other debts to the extent permitted by law, firms must allow the government to examine their accounting books and records, firms must report any transaction greater than US$100 million and the government has the power to block any of these transactions greater than US$100 million, firms must comply with Federal fuel efficiency and emissions requirements, and firms must not issue new dividends while in debt with the government.

Ford, the healther of the Detroit 3, is still asking for a US$9 billion government line of credit in case conditions worsen or one of the other Detroit 3 fails. But they do not need any money immediately at the moment, unlike as claimed by GM and Chrysler.

Canada has also extended help to the Canadian arms of GM and Chrysler. The Canadian government will provide C$2.7 billion while the Ontario state government will top up another C$1.3 billion for a total of C$4 billion. Of this total, C$3 billion will go to GM while C$1 billion will go to Chrysler. Canadian production capacity represents 20% of total North American auto production capacity, but this aid amount only represents 16% of all total aid offered by North American governments.

So far the response from the industry have been mixed, but the positive ones so far are only coming from pro-Detroit government officials and GM dealers and other industry-related people who stand to benefit from the loan. Standard and Poor equity analyst Efraim Levy expects GM to quickly blow the billions they are getting and then request another multi-billion dollar loan on March 31st 2009. Jerry Webman, chief economist at Oppenheimer Funds said this bail-out is much like the government infusing the blood in on arm while it’s bleeding out the other arm in attempt to keep them alive.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

GM, Chrysler and Ford is asking for a collective US$6 billion in loans, of which US$2 billion is a request from Ford and only a “stand-by” line of credit in-case the situation gets worse. Ford seems to be the least affected of all 3, could it be they are actually making cars people want to buy?

GM seems to be the worse off. GM is also asking an additional “immediate” US$800 million from Canada to make it through the end of 2008. U.S. Senator Chris Dodd has suggested that GM CEO Rick Wagoner “move on”, given an almost “impossible to defend” record (according to BusinessWeek) that includes wasting US$1.3 billion on a stake in Subaru which yielded absolutely nothing – no new cars, no technology, nothing, and then proceeded to sell off the stake later, partly to Toyota. He also spent US$2.3 billion to buy a share in Fiat and another US$2 billion to get out of it. Read the BusinessWeek link for more on Wagoner’s track record in GM.

The American taxpayers are probably furious at GM and the silver lining is at least GM knows it, hence this two-page apology letter to the American taxpayer you can read below.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

I found it quite hilarious and I am sure those who are opposed to the Detroit 3 getting a federal bailout or simply anyone that enjoys a good laugh will enjoy this. At least the satirical fictional CEOs did not fly in their private jets to the satirical fictional hearing!

Anyway here’s a note: the video jokes about the U.S. congress asking for a 200 mpg car by 2015, but the number is actually 36 mpg, which is about 6.5 liters per 100km.

Watch the video after the jump.

Related Video:
VIDEO: What would happen if GM collapses?

VIDEO: SNL – Detroit 3 Bail-out

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

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.

PHOTO GALLERY: Dodge Journey
Click thumbnails to view high resolution photo

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

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)

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

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

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

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

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

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

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

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

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

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.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

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.

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Shareholders want Chrysler name dropped from DaimlerChrysler

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

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.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

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.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

GM said they were interested. Renault-Nissan said they had too much on their hands. Hyundai declined any interest. SAIC of China said no interest in anymore foreign buyovers. Here comes Magna International, to Chrysler’s rescue.

Magna International has always been on the lookout for Chrysler. On the eve of the Jeep Wrangler’s launch in August 2006, Chrysler found itself suddenly without a paint-shop supplier. Magna’s chairman Frank Stronach sent in a team from Magna Steyr, adding new equipment to the Toledi Supplier Park and helping Chrysler with talks with the UAW so that the Wranglers could roll off the assembly line on time.

This is of course understandable – 26% of Magna sales come from Chrysler. Total sales for 2006 was US$24.18 billion – 26% is about US$6.28 billion. That’s alot of money. Frank Stronach is also the highest paid auto parts manufacturer executive at US$33.3 million a year in 2005.

Hence as a move to protect it’s contracts with Chrysler, as well as help out a major customer, Magna starts to make it’s moves to buy over Chrysler, with Stronach confirming interest to US media today. But how will Magna buy Chrysler, a company with 2.5 times the revenue of Magna? What makes it worse is despite raking in that much revenue, it still posted a loss of US$1.5 billion in 2006.

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

More updates on the potential break-up of American-German automotive giant DaimlerChrysler. DaimlerChrysler recently announced it might sell off the Chrysler group, viewed by some as going back on it’s word for commitment in making the partnership work. DaimlerChrysler issued a statement to the media today saying it’s future strategy for Chrysler’s could only be decided in weeks or months.

Chrysler CEO Tom LaSorda has decided to shed some light on the matter, whatever light he is able to shed without implicating himself legally of course. The full unedited email is available after the jump.

Tom LaSorda’s Email

Dear Colleagues,

I know you have many questions as a result of the DaimlerChrysler Annual Press Conference last week and the resulting rumors about the future of the Chrysler Group. Im sending this letter because I want to provide you the information that I can, and share with you my personal thoughts.

Journalists and analysts have been busy conjecturing over what will happen. To a certain extent, that is the nature of their business and we need to keep it in perspective. I know that youve been reading and discussing these stories, but I want you to keep in mind that Dieter Zetsche and the Board of Management strongly endorsed the Chrysler Groups new Recovery and Transformation Plan. Dieter added that the company will look into “further strategic options with partners beyond that business cooperation” that I outlined in the Recovery and Transformation Plan, which set off the frenzy of rumors.

We simply cannot respond to these reports. The Board of Management has a duty to consider all options; but while this process is ongoing, the Board – including myself – cant comment on developments because of strict legal requirements.
It may take weeks or months before official comments can be made on some issues. However, I can tell you that further information on the voluntary separation and early retirement programs for employees will be communicated in the next few days.

Meanwhile, our job is very clear. Our mission is to produce great cars and trucks, to take care of our customers and to restore profitability. Whatever fork in the road we may take, we first have to make sure were on the road – and the Recovery and Transformation Plan is that road. The plan is designed to make us profitable by 2008 and put us on solid footing to stay there. This is a sound plan that includes a substantial investment in our long-term competitiveness, and we must focus our attention on executing it.

The Chrysler Group has been around for more than 80 years and has been through difficult times before. We went through a restructuring in 2001, but our situation today is much different. For one thing, were leaner. Another important difference is that we have a full product pipeline with at least 20 new and 13 refreshed vehicles on their way from 2007 to 2009.

We also have achieved areas of operational excellence that are the benchmark of the world. Capacity for the fuel-efficient, four-cylinder World Engine in Dundee, Michigan, will increase to 840,000 units a year over the next few years, compared to the 260,000 we built last year. Our improvements in manufacturing productivity lead the industry over the past four years. Weve also made great strides in product quality – for example, the Chrysler Town & Country minivan led its segment in the 2006 Initial Quality Survey from J.D. Power, beating Toyota and Honda.

Importantly, we are continuing to invest in our future. In addition to the barrage of new products, we will invest $3 billion in new powertrains, including a new family of world-class V-6 engines and a new dual-clutch transmission that we are developing with Getrag.

To sum up, we are a much leaner and stronger organization than before, and we are continuing to make the necessary investments to be competitive into the future. We are a good company with great talent and a clearly defined plan of action. The best way to secure a successful future for the Chrysler Group is to focus on what we can control – that is the Recovery and Transformation Plan. Many of you may be familiar with the adage about accepting what you cannot change and taking charge of what you can control. We can learn a lot from this message.

We have an obligation to each other, to our shareholders, to our dealers and to our customers to make this plan successful. Your support and best effort have never been more important, and I thank you for your continued dedication to the job at hand. In the meantime, you have my promise that we will continue to communicate as openly and directly with you as possible.

Sincerely,
Tom

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

Jeremy Clarkson of Top Gear compares the Chrysler 300C SRT8 to the E60 BMW M5. Not a bad comparison I would say, as the Chrysler 300C was based on a previous version of the Mercedes Benz E-Class, now called the Chrysler LX platform. The SRT-8 version features a 6.1 liter Hemi V8 engine making 425hp at 6,200rpm and 569Nm of torque at 4,800rpm. This is the same engine used in most SRT-8 versions, including Dodge and Jeep vehicles.

It’s interesting how the two companies chose to engineer the top of the line performance versions of their mid-sized luxury sedans. The BMW M5 proves to be a real driver’s car – but what about the 300C SRT-8?

Video after the jump.

Video: E60 BMW M5 vs Chrysler 300C SRT8

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.

Ever since DaimlerChrysler announced that the sale of Chrysler and it’s brands (Dodge, Jeep) to another party is now an option, there has been plenty of rumours, supposed insider news as well as speculation on who the new buyer would be.

Seen as a forefront to the Chrysler purchase is General Motors, who analysts think would purchase Chrysler as a defensive move against import marques like Toyota. Analysts think purchasing Chrysler would give GM a US$9 billion value in terms of product line-up, operating efficiencies including reduced R&D and advertising costs. Stock market analysts are mixed over the issue, with John Murphy of Merrill Lynch rating GM shares as a buy, while Jon Rogers, a New York-based analyst at Citigroup Investment Research rated them as a sell. DaimlerChrysler shares remain unrated.

Some think Hyundai may be a good match for Chrysler, and Hyundai has already worked with Chrysler before on certain projects including the Global Engine Manufacturing Alliance project along with an accompanying platform, as well as rebadging Hyundais as Dodge cars in Mexico. Hyundai needs more plants in the US, something Chrysler has. Hyundai currently only has one plant in the US. Hyundai needs a V8, Chrysler has the Hemi. Chrysler used to own a 10.5% stake in Hyundai. Hyundai is good at small cars, Chrysler is not – Chrysler’s good at big cars, Hyundai isn’t.

Other speculated potential suitors are the Nissan and Renault alliance, as well as SAIC and Chery of China. Chrysler and Chery already have an agreement for Chery to assist Chrysler in building small compact cars, something that Chery does best. Foreign automakers like Toyota, Hyundai and the Chinese makes are cited as one of the reasons GM would buy Chrysler, as having a foreign Korean or Chinese marque gain access to Chrysler’s extensive dealer network would be a problem – the American companies already have problems fending off the Japanese.

Anyway, whether GM takes up Chrysler or not, they are already in some form of joint venture talks now, as General Motors might give Chrysler access to it’s GMT900 platform large-SUV, something that Chrysler does not have an equivalent in it’s line-up.

Related Posts:
DaimlerChrysler might drop Chrysler Group

© 2009 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 22 Nov 09 05:41:50 +0800.