There’s only one reason for the presidential price tag on this 2005 Chrysler 300C – it was used by US President Barack Obama! Put up on eBay by one “cubfanatic23″ for US$1,000,000, this 300C was said to be used by Obama when he was Illinois State Senator, before he occupied the White House.

The seller says that he has the original Illinois title showing this Chrysler (VIN #:2C3AA63H55H174644) was actually used by Obama. The 300C was transferred to Obama on 13 July 2004 when the vehicle had two miles on it. He then put over 19,000 miles on the clock.

The seller presumes that the 19k miles included many highway miles back and forth from Chicago to Springfield. Obama won election to the US Senate in November 2004 and could have driven the car between Washington D.C. and Chicago in 2005/2006.

Apparently, Obama received negative media attention regarding his choice of car – a heavy drinking V8 Hemi machine. So the man boosted his green credentials and traded it in for a friendlier Ford Escape Hybrid in 2007.

Mr Seller reminds punters that this is not a joke, nor is the $1m asking price. He points out that President of Iran Mahmoud Ahmadinejad’s 1977 Peugeot 504 fetched £1.5million at an auction, and a 1975 Ford Escort GL once owned by Pope John Paul II sold for $690,000 to a Houston multimillionaire.

Interested? You have just over five days left to make a move!

© 2012 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 27 May 12 15:37:57 +0000.

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1. Chrysler planning to set up ASEAN manufacturing base

Reports have it that Chrysler Indonesia is set to launch new Chrysler, Jeep and Dodge models at the show, including a Jeep 70th Anniversary edition. PT Garansindo Inter Global, Chrysler’s authorised distributor in the country, will also launch Mopar, which handles accessories and parts designed specifically for the three marques.

Since its reentry into the country a year ago, sales of Chrysler vehicles have been steadily climbing, and the company is expecting to meet its sales target of 700 cars this year. At point of entry last July, six variants from the three brands were slated to be sold in Indonesia, these being the Chrysler 300C and Cabriolet Sebring, the Dodge Journey as well as the Jeep Wrangler Sahara, Wrangler Rubicon and Patriot, all CBU units.

Jeep seems to be doing particularly well – a year on, it has contributed 70% of the company’s total sales, with the Wrangler leading the way for Jeep, with 70% of sales.

The reports add that Garansindo, which currently has five dealers in Jakarta, Surabaya and Bali, is aiming for some serious expansion, targeting to open no less than 23 Chrysler, Jeep and Dodge dealers across the country, including Sumatra, Kalimantan and eastern Indonesia by 2013, and will spend up to US$100 million for expansion.

And with Chrysler already having a sales network in the Philippines, Singapore, Brunei, and Vietnam, the company looks like it’s definitely aiming for bigger, with an eye to assembly and manufacturing in the region.

Chrysler’s Asia Pacific Operations CEO John Kett was quoted as saying that while the company’s focus was to reestablish its presence in the Indonesian market, there were plans for the company to set up a manufacturing plant in Southeast Asia, though it had yet to decide which country it would be built in.

“To develop an industrial base in the region is our priority, but whether it’s in Indonesia (or another country) is a separate discussion,” Kett told reporters. Given the increasing levels of activity happening there, it’s probably safe to assume Indonesia will be it, with the Wrangler being the first to go CKD, joined perhaps by the Patriot.

© 2012 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 27 May 12 15:37:57 +0000.

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1. BREAKING: FHI and Tan Chong to make Malaysia the ASEAN production hub for Subaru, compact SUV first up!

We showed you the Lancia Thema in the previous post, which is essentially a Chrysler 300 with an Italian name, and here are the other members of the new Chrysler based Lancia range of cars. Meet the Lancia Grand Voyager and the Lancia Flavia sedan and convertible.

Like the Thema, these “new Lancias” are largely unchanged from the American cars they were based on, and in the case of the MPV, Lancia didn’t even bother changing its name! The Voyager has been a mainstay in the segment for 27 years now, selling thirteen million units in 120 countries in the process, so perhaps that’s why Lancia isn’t changing its identity. The Grand Voyager replaces Lancia’s previous MPV, Phedra, which is a twin of the Citroen C8 and Fiat Ulysse.

Click to enlarge

Called the Chrysler Town & Country in America, the current Grand Voyager is 5.14 metres long and 1.99 m wide, so it’s a huge box that’s even bigger than a Hyundai Starex. Main features include Stow ‘n Go seats in 2-2-3 formation and electric tailgate and sliding doors. It’s a Lancia so interior trim is more luxurious than if it was a Chrysler. The Grand Voyager is be powered by a Euro 5 rated 2.8L CRD engine with 163 hp/360 Nm or a 283 hp 3.6 V6 petrol.

Click to enlarge

Also converted is the Chrysler 200 sedan and convertible, which will be called the Lancia Flavia, reviving a nameplate from the 1960s. This younger brother to the Chrysler 300 is a revamped Sebring with a new name, in hope that it will offer better challenge to mid-sized stalwarts like the Camry and Accord. The 200 Convertible was unveiled last month. It’s a four-seater with the choice of a retractable hard top or a cloth soft top.

Those who remember the old days where Lancias were beautiful, exotic and race winning will cringe at the sight of these. I’ve unearthed something and would like to share it with you. Look out for it after the jump.


Click to enlarge

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We’ve known since mid last year that Lancia will sell rebadged Chryslers after Fiat bought a stake in the American company. The Lancia Delta appeared at last year’s Detroit show as a Chrysler and the upcoming Geneva show will see the just revamped Chrysler 300 show up in Switzerland as a Lancia, the new Lancia Thema to be exact.

This revives the Thema nameplate, which Lancia used for its big saloon in the 80s. If the original Thema was famous for having a version that used a Ferrari V8 engine, today’s Thema will be motivated by less exciting powerplants. There will be three V6 options – Chrysler’s 292 hp/353 Nm 3.6L Pentastar V6 with an 8-speed automatic ‘box and two 3.0L diesels (190 or 224 hp) with a 5-speed auto. All are Euro 5 compliant.

The petrol has the best performance figures – top speed of 230 km/h and 0-100 km/h in 7.2 seconds – but the Italian VM supplied oil burners will be more popular in Europe, especially the higher powered version with 550 Nm from 1,600-2,800 rpm.

Lancia focuses on style and luxury these days, so their 300 will get an option of Nappa leather and a Poltrona Frau leather-covered dashboard, as well as real wood inserts on the centre console, panels, doors and steering wheel. The seats feature four-way lumbar adjustment with up/down and front/back direction actuators and density adjuster plus S-shaped “serpentine spring suspension”. Best in class cabin isolation is also talked about. The two trim levels are called Gold and Platinum.

The Thema will go on sale from October 2011 in Europe. Click here to see the donor Chrysler.

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Chrysler’s new 200 sedan was announced a few months back, and now the drop-top sibling has been unveiled – the 200 Convertible will take over the slot from the outgoing third-generation Sebring, which arrived in the market a year later than its sedan counterpart, in 2008.

Much of the 200 sedan is carried over to the convertible, which is available in two automatic roof forms – a body-coloured steel, retractable hard top or a cloth soft top, with operation controllable via the key fob button.

Among the novelties to be found in the interior is a media centre with voice command, SIRIUS Satellite Radio and a 30GB HDD/CD/DVD/MP3 radio with SIRIUS Travel Link, which provides real-time information.

Like the sedan, the convertible will be available in 2.4 litre four-cylinder World Gas Engine or 3.6 litre Pentastar V6 guise, with both options mated to a six-speed transmission. Chrysler says that attention has been paid to the ride and handling, and virtually every part of the suspension has been retuned or redesigned, including 22 of 28 suspension bushings.

The 200 Convertible will be available in three different configurations in its primary market, the US, these being the Touring, Limited and S models.

Gallery after the jump.

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Six years after the Chrysler 300 made its debut, the “gangsta style” chrome laden full sized sedan is one of the most recognisable American car shapes around. So it made sense that when coming up with the new 2011 model, Chrysler stuck to the same formula, although it’s sleeker and more current looking now.

The most obvious departure is the previous car’s trademark “Heritage” egg crate grille (still available as an option), replaced by one with seven chrome blades. Flanking this new nose are fancy headlights that incorporate C-shaped LED daytime running lamps.

Seen from the side, the 300 retains the distinctive proportions of its predecessor “with added design refinement for a more tailored appearance”, Chrysler says. The windshield has been raked back by three inches, while thinner pillars improve outward visibility by 15%.

Like before, there aren’t many elements in the rear design, which now features an integrated deck-lid lip spoiler with the new Chrysler wing emblem sitting below. The lamps are LEDs, with a chrome splitter in the middle. There are big pipes, one on each side.

Two engines are available – a 3.6L Pentastar V6 engine with 292 hp/353 Nm and a 363 hp 5.7-litre HEMI V8 with Fuel Saver Technology. FST allows the V8 to run on four cylinders on light loads, saving up to 20% fuel in the process. When it’s not in fuel saver mode, the HEMI is capable of hauling the 300 from 0-60 mph (0-92 km/h) in less than 6 seconds.

There’s an AWD model that features a segment-exclusive active transfer case and front-axle disconnect system to improve economy by up to 5%, meaning it’s on demand and is rear-driven by default.

Like the Buick Verano we showed you earlier, the new 300 is claimed to be a silent master. The material and structural design improvements include two premium-composite underbody panels that provide more than eight feet of acoustic insulation, dual-pane acoustic windshield and front-door side glass, body-cavity silencing foam, under-flush rolled-framed doors with triple seals and acoustic wheel-well liners.

The all new cabin gets Nappa leather seats and real wood trim, but all eyes will first look to the prominent centre stack, which houses Uconnect Touch 8.4. One can access integrated Garmin navigation, SIRIUS Travel Link with real-time fuel prices, movie listings, sports updates and weather via the 8.4-inch touchscreen display. Not all will like the cabin’s Sapphire Blue ambient interior lighting though.

Gallery after the jump.

© 2012 Paul Tan's Automotive News. All Rights Reserved.

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Chrysler has unveiled its new mid-sized challenger to rival the Camry, Accord and Chevy Malibu. Named 200, this younger brother to the 300 kills off the Sebring nameplate and will go on sale as a 2011 model. Fiat now owns Chrysler, but the Sterling Heights, Michigan built 200 isn’t a reskinned Italian car.

Described as a car that appeals to “customers that want style and substance, all at a surprising value”, the 200 is based on the third-gen Sebring, which made its debut in 2007, but with heavily revised styling that makes it appear much more handsome than before.

New bits include front and rear fascias and fenders, grille featuring the new Chrysler winged badge, hood, rear decklid and exterior mirrors, new projector headlamps and fog lamps, new LED taillamps and a LED centre high-mounted stop light. The rear end clearly apes the Jaguar XF.

The 200 will be powered by the 2.4-litre four-pot “World Engine” mated to either a four-speed or six-speed automatic gearbox. The V6 option is filled by the company’s 3.6-litre Pentastar engine mated to a six-speed auto.

Chrysler says that ride and handling has been improved thanks to stiffened body mounts and a softer ride rate, improved suspension geometry with a raised roll centre and a new rear sway bar. NVH has been “extensively upgraded” from the old car as well.

The cabin has been upgraded too, but there are no images to see where and how. Gallery after the jump.

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Fiat already have plans to increase that 20 percent to 35, but money from Ferrari would allow the Italian automaker to purchase a controlling stake of 51 percent from Chrysler. Industry analysts state that Fiat plan to do this sometime in 2011 or 2012.

Fiat has denied all of these reports so at this point it’s all speculation. It also contradicts with a previous statement by Fiat CEO Sergio Marchionne that they are planning to take their share in Ferrari up to 90 percent.

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This is the Lancia Delta HF Integrale, which was just recently announced as the “greatest hot hatch of all time” according to a vote participated by over 3,500 Autocar UK readers. The Delta HF Integrale garnered 14.3% of votes, almost double that of its nearest challenger, the Peugeot 205 GTi, followed by the original Ford Focus RS with 7.7% of the votes.

It’s sad that in today’s times neither Peugeot or Lancia are known for their hot hatches anymore. In fact Lancia has been reduced to a brand that sells what’s basically Fiats with sometimes slightly longer wheelbases and slightly better trim.

And the latest news is that the Lancia brand will basically be used to sell rebadged Chryslers in Europe, with the Chrysler brand being officially pulled out of the continent, except for UK and Ireland where Lancia has not been sold since 1991, so the Chrysler badge will remain in those two countries. It’s going to be a strange situation similar to that of Vauxhall and Opel where a set of cars will be sold as Opels all around Europe except for UK where they’re sold as Vauxhalls.

Chrysler cars that will get a new Lancia badge soon include the next generation PT Cruiser and Sebring replacements, the current generation Chrysler 300C and an updated Chrysler Voyager, which is sold in the US as the Chrysler Town & Country.

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Chrysler claims the new Pentastar V6 is the most advanced V-6 engine in the company’s history, but is that really surprising considering pushrod V6 engines are still in use in the company’s fleet? It will replace as many as 7 current Chrysler V6 engines used in the group’s cars. The first application of this engine will be in the all-new Jeep Grand Cherokee, due out Q2 this year. More variants with better tech like Fiat Multi-Air, direct injection and turbocharging will come later in order for it to replace larger engines.

But for now what we have is a 3.6 litre normally aspirated V6 which makes 290 horsepower at 6,350rpm and 353Nm of torque at 4,300rpm, which represents an increase of 38 percent in horsepower and 11 percent in torque over its predecessor while providing an 11 percent fuel economy improvement.

It’s a twin cam engine with a high-pressure die-cast aluminum cylinder block in a 60-degree configuration and a redline of 7,200rpm. 90% of its peak torque (over 300Nm) is available between 1,800 to 6,350 rpm, which is pretty good and it’s also E85 flexfuel capable. This engine will also be used by larger Alfa Romeos and Lancias.

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The Auburn Hills based company is offering current Toyota Tundra, Tacoma and Sienna owners an additional $1,000 trade-in bonus cash with the purchase or lease of any new Chrysler, Jeep, Dodge car or Ram truck. The bonus cash is also there for all Toyota returning lessees who opt for a Chrysler Group vehicle.

“The 2010 Ram Heavy Duty is Motor Trend magazine’s ‘Truck of the Year’ and the Ram 1500 is our most awarded truck ever,” said Fred Diaz, President and CEO–Ram Brand and Lead Executive for the Sales Organization, Chrysler Group LLC. “Chrysler invented the minivan and with more than 65 minivan-first innovations has the best minivans in the marketplace with the Dodge Grand Caravan and Chrysler Town & Country. Dodge has sold more minivans than any other manufacturer, and combined with the Town & Country has more than 42 per cent market share in the minivan segment,” Diaz trumpeted.

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This third generation Lancia Delta was the sole Lancia car at the 2010 Detroit show’s Fiat-Chrysler stand which consisted of all the Chrysler and Fiat brands including Ferrari and Maserati.

The only thing is, this sole Lancia wasn’t exactly a Lancia. Instead it had Chrysler badges on it. It didn’t even have its own nameplate – it was simply called a Chrysler.

The Lancia Delta is essentially built on a long wheelbase (+100mm) Fiat C platform, the same base as the Fiat Bravo. In American terms that makes it somewhat of a CD car like the Ford Fusion and the Chrysler Sebring.

Look after the jump for a full hi-res gallery of the Delta.

© 2012 Paul Tan's Automotive News. All Rights Reserved.

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The Chrysler Group is also on the same boat, but doesn’t need to self-develop thanks to its alliance with Fiat. The Pentastar has announced a powertrain revamp that will see overall fuel-efficiency improvement of over 25% from now till 2014. “Chrysler will attain leadership by rapidly applying Fiat Powertrain tech, such as Multiair, direct injection, turbocharging and transmission systems to its powertrain portfolio,” said Paolo Ferrero, Senior VP, Chrysler Powertrain.

Fiat will donate its 1.4-litre FIRE engine with Multiair, available in naturally aspirated and turbo form. Multiair emplys electro-hydraulic variable-valve actuation to deliver increase in power of up to 10%, improvement in low rpm torque of up to 15% and reduction in fuel consumption and emissions by 10%. The system has full control of the lift and timing of engine valves, independently on each cylinder and during each single engine stroke. The N/A engine has 100 bhp and 129 Nm while the turbo comes with 170 bhp/231 Nm.

Chrysler has also integrated Multiair into its 2.4-litre GEMA World Engine, boosting figures to 190 bhp and 237 Nm from the previous 172 bhp/223 Nm. A turbo version is under development.

Beginning with its D-segment cars, Chrysler will use Fiat’s six-speed Dual Dry Clutch Transmission, which delivers 10% better fuel efficiency. The ‘box can handle up to 350 Nm of torque.

© 2012 Paul Tan's Automotive News. All Rights Reserved.

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Glamour brands Ferrari and Maserati will be present at the 2010 Detroit Motor Show – Maranello was absent last year – but will share the same floor space with the Chrysler Group! High-end marques normally set up shop at the show’s luxury row, so imagine seeing the Ferrari 458 Italia next to a Dodge Ram and a Jeep Wrangler!

But that’s where the Italians will be, sandwiched between Dodge and Jeep brands. Both are part of the Chrysler Group, now part of the greater Fiat Group, which has Ferrari and Maserati under its umbrella. One big happy family indeed!

Chrysler is reportedly not hosting a press conference at this year’s show, so its new neighbours will do the job of drawing in the crowd. The Lancia Delta rebadged as a Chrysler is set to be one of the few “new” offerings on display.

The North American International Auto Show 2010 press preview starts on January 11, and we will bring you the best Detroit has to offer so keep your eyes peeled!

Source

© 2012 Paul Tan's Automotive News. All Rights Reserved.

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The result of this will be a 50% increase in car production figures in Italy over the next two years – a very optimistic target. This year’s Italian output is likely to total 650,000 units.

To achieve the growth, Fiat plans to launch 17 new models and 13 upgraded versions of existing models in 2010 and 2011, revealed Sergio Marchionne, CEO of the Fiat Group. Chrysler’s first contribution to the masterplan will be an SUV that will be launched next year, followed by five new models in 2011 consisting a Fiat crossover and four models for the Lancia brand, including a sedan and a convertible, all based on Chrysler’s big car, SUV and crossover platforms. There was no mention of sharing plans for Alfa Romeo.

In November, Fiat rolled out an equally ambitious five-year plan for Chrysler (which brands include Dodge and Jeep) that would see global sales rise from this year’s 1.3 million to 2.8 million in 2014. By then, half of its models will be based on Fiat Group platforms and most will use Fiat Multiair variable valve engine technology.

The ultimate target for Marchionne is a minimum of five million cars per year from the entire Group, to be achieved by 2014.

Source

© 2012 Paul Tan's Automotive News. All Rights Reserved.

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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 litre Hemi V8 producing 390 horsepower and 552Nm of torque, a 4.7 litre Magnum V8 making 310 horses and 447Nm of torque, or a 3.7 litre 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!

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

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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

© 2012 Paul Tan's Automotive News. All Rights Reserved.

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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.

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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.

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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 litres to 2.4 litres, and the Phoenix family 3.6 litre 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.

© 2012 Paul Tan's Automotive News. All Rights Reserved.

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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.

© 2012 Paul Tan's Automotive News. All Rights Reserved.

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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 litres (4B10) to 2.4 litres (4B12), and Chrysler uses these (including a turbocharged 2.4 litre) in cars like the Dodge Caliber (photo shown above).

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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

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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?

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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

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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!

© 2012 Paul Tan's Automotive News. All Rights Reserved.

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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

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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.

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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.

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