GM, Chrysler may resort to more closures, cuts

February 10th, 2009

tool name close tool goes here GM, Chrysler may resort to more closures, cuts The Associated Press Related Content

Marty Padgett’s blog: Link Love From The Car Connection: Chrysler Expands, Ford Inflates, Drivers Stink Less - The Car Connection

February 9th, 2009

Camaro mouse by Road MiceEnlarge Photo If your schedule looks anything like ours, it’s gonna be a long haul to Friday. Here’s some fun stuff to ease everyone into the workweek: Auto inflation: Ford found a new way to cut corners–with inflatable crash test cars. On the downside, some crash test dummies may be limping to the unemployment line. [Detnews] DS/Goddess debate continues: On Friday, we told you that pics of the revamped CitroР»n DS has leaked to the interwebz. Apparently, we weren’t the only ones underwhelmed. (Basically, they call the DS3 a brick.) Around the same time, the original DS was busy topping a list of the most beautiful cars of all time. Younger sisters have it rough. [LeBlogAuto] USBMine4Ever: Looking for the perfect Valentine’s Day gift? Diamonds are expensive and potentially politically incorrect. Chocolate? High-cal, high-fat. How’s about something a little less predictable–say, a mouse shaped like a Dodge Charger SRT-8? That’ll get someone’s heart a-racing. [RoadMice via Carscoop] Tree-friendly branching out: Chrysler may talk about shrinking its pool of brands, but it’s also adding one to the fold: Peapod Mobility, which will make low-speed "Peapod" electric vehicles.
Sounds more like the name of a space-age porta-potty delivery service to us, but whatever. [Jalopnik] Polishing up the brand: There’s a new kid in town at the franchise fair: Procter and Gamble’s Mr. Clean Car Wash. It seems like a great marketing move, but we’re a little nervous about the employee grooming code. Not everyone can pull off the Kojak look, y’know. [Autoblog] Drivers stink less: Legends of football and hip hop have been used to shill Old Spice Swagger deodorant. Now the company’s brought Nascar to the table via driver Tony Stewart. Seeing is believing: [thanks, Chad!] Tags: Safety, Electric Cars, Videos Posted in: Ford, Chrysler

Fiat getting large chunk of Chrysler

February 9th, 2009

Fiat getting large chunk of Chrysler Rumors last year had Italian company eying Newark plant Published: Tuesday, January 20, 2009 2:33 PM CST Fiat and Chrysler have struck a deal that will give the Italian company a 35 percent chunk of the company of the troubled automaker.
As previously reported, Fiat would not make a cash investment in what the two companies described as a global strategic alliance. Fiat will also help Chrysler with submitting a financial recovery plan that was a condition of a recent federal loan. The nonbinding agreement would require regulatory approvals that include the U.S. Treasury. The Wall Street Journal reported Fiat may take one of Chrysler’s plants and convert it to production of a Fiat model. It would also provide technology that would allow production of a new small car from Chrysler. Bloggers last year had Fiat looking at Chrysler’s now-closed Newark plant last year, although such speculation died out as auto sales plummeted. The plant is the closest Chrysler plant to ports that could be used to export vehicles to Europe. Also mentioned was the possibility of Fiat building commercial vehicles at the plant.Chrysler is current negotiating with the University of Delaware on purchase of the site. However, UD has also expressed a willingness to allow multiple uses for the property, which has rail access and is in close proximity to I-95.Fiat has not exported cars to the U.S. in decades, but has been eying the market for some time. It does operate worldwide, unlike Chrysler, which is now confined to North America. While one of the weaker European automakers, it is in better shape than Chrysler, which recently received a federal loan, while it works on a turnaround plan. Chrysler already has an alliance with Nissan that aims to build large pickup trucks for the Japanese automaker that has not seen great success with its large light duty model. The Journal noted that a link-up with Fiat might complicate that relationship.Fiat is a competitor with France’s Renault, which is controlled by Nissan.Fiat has a broad range of products beyond its namesake car, as well as Lancia, Maerati and Ferrari luxury brands; Case and New Holland construction and agricultural equipment; and Iveco delivery trucks.

Chrysler Financial sues Denny Hecker for \$550M

February 9th, 2009

Minnesota business by the numbers See Minnesota’s top earning companies, CEOs and non-profits

Fiat getting large chunk of Chrysler

February 9th, 2009

Fiat getting large chunk of Chrysler Rumors last year had Italian company eying Newark plant Published: Tuesday, January 20, 2009 2:33 PM CST Fiat and Chrysler have struck a deal that will give the Italian company a 35 percent chunk of the company of the troubled automaker.
As previously reported, Fiat would not make a cash investment in what the two companies described as a global strategic alliance. Fiat will also help Chrysler with submitting a financial recovery plan that was a condition of a recent federal loan. The nonbinding agreement would require regulatory approvals that include the U.S. Treasury. The Wall Street Journal reported Fiat may take one of Chrysler’s plants and convert it to production of a Fiat model. It would also provide technology that would allow production of a new small car from Chrysler. Bloggers last year had Fiat looking at Chrysler’s now-closed Newark plant last year, although such speculation died out as auto sales plummeted. The plant is the closest Chrysler plant to ports that could be used to export vehicles to Europe. Also mentioned was the possibility of Fiat building commercial vehicles at the plant.Chrysler is current negotiating with the University of Delaware on purchase of the site. However, UD has also expressed a willingness to allow multiple uses for the property, which has rail access and is in close proximity to I-95.Fiat has not exported cars to the U.S. in decades, but has been eying the market for some time. It does operate worldwide, unlike Chrysler, which is now confined to North America. While one of the weaker European automakers, it is in better shape than Chrysler, which recently received a federal loan, while it works on a turnaround plan. Chrysler already has an alliance with Nissan that aims to build large pickup trucks for the Japanese automaker that has not seen great success with its large light duty model. The Journal noted that a link-up with Fiat might complicate that relationship.Fiat is a competitor with France’s Renault, which is controlled by Nissan.Fiat has a broad range of products beyond its namesake car, as well as Lancia, Maerati and Ferrari luxury brands; Case and New Holland construction and agricultural equipment; and Iveco delivery trucks.

Fiat’s offer for Chrysler is a nonstarter

February 9th, 2009

There was a time when if you suggested that Fiat, the Italian carmaker whose name is often derided in the U.S. as an acronym for "Fix It Again, Tony," would one day be in a position to buy one of Detroit’s Big Three, you would have been laughed out of the room. Now Fiat is proposing to merge with and possibly acquire a majority stake in Chrysler, but on one condition: that American taxpayers pony up $3 billion to seal the deal, on top of the $4-billion bailout Chrysler received in December.
President Obama should laugh Fiat out of the room.We had misgivings last month when President Bush agreed to provide $13.4 billion in loans to Chrysler and General Motors, though we endorsed the move because it averted a precipitous collapse that could have worsened the country’s economic turmoil.

But the gravy train isn’t endless, and it needs to be derailed if the companies can’t make a strong case that they are restructuring in ways that will return them to profitability. The details that have emerged about the proposed Fiat-Chrysler deal don’t make that case. A marriage between Chrysler and Fiat might improve matters for both companies, because each would get something it needs. Chrysler has little presence overseas and makes mostly large, gas-guzzling vehicles that are no longer popular even among Americans. Fiat, which also owns Alfa Romeo, Maserati and Ferrari, makes mostly small cars under its own brand; its models are a hit in Europe, but it has no presence in the U.S. There’s just one problem: Fiat wants a piece of Chrysler without putting any money into the company, while demanding as a condition of the deal that Washington hand over $3 billion in loans needed to keep Chrysler afloat in the short term.
This would simply shift the risks of the transaction to U.S. taxpayers.Fiat would reportedly get a 35% stake in Chrysler in exchange for letting the Detroit giant use its engine technology and build cars based on Fiat designs. Fiat also would have the option to buy an additional 20% of Chrysler after 12 months for the fire-sale price of $25 million. It would take at least a year for Chrysler to retool to build Fiat cars, and Fiat, which abandoned the U.S. market in 1983, hasn’t demonstrated the ability to make cars that Americans value.Chrysler has until Feb. 17 to present the Obama administration with a plan on how it will return to fiscal health if it wants to qualify for the $3 billion demanded by Fiat. The proposed merger would do nothing to solve Chrysler’s immediate cash-flow problems, and the odds are thin that it could assure the company’s long-term survival. Taxpayers shouldn’t be asked to double down on their risky bet on Chrysler simply to give an Italian automaker a sweetheart deal. Unless Fiat can come up with a better offer, it should enter the U.S. market the old-fashioned way: by buying up pieces of Chrysler once it has been liquidated.

Green Business Examiner: Jim Press offers latest information on Chrysler’s electric car

February 9th, 2009

Currently, Chrysler has not announced which of the ENVI vehicles is slated for 2010 release. In an intimate roundtable discussion I attended today, Chrysler President Jim Press discussed the challenges of continued devleopment of Chrysler’s ENVI-powered electric vehicles - one of which will be released in 2010.
Currently, Chrysler is road-testing 100 ENVI vehicles and addressing issues such as the cost and robustness of the vehicle batteries. Chrysler is considering leasing the batteries in order to keep consumer cost down - or establishing a only pay for what you use strategy. Future developments also include an extended-range electric vehicle with an on-board generator that will recharge the battery when necessary. Press (formerly of Toyota) says that Chrysler is currently debating how to create a large scale infrastructure that will support battery recharging. One consideration is the develoment of stations that would have charged batteries in stock…entertaining a shared use concept where a driver drops off a nearly-dead battery for recharging and takes off with one that is fully charged.

That said, Chrysler, like any other automaker in the electric car business, is also eyeing lithium ion battery development - citing a need for investment in US battery production - rather than trading foreign oil for foreign batteries , Press stated.
For more info: Get the latest in pics, videos and information about Chrysler’s ENVI line by visiting their blog.

Brawn, brains and no gas pains Chrysler Aspen two-mode hybrid

February 9th, 2009

The two-mode hybrid system employed in the Chrysler Aspen, which is shared with BMW, General Motors and Mercedes, is the answer. On paper, it has the potential to cut fuel consumption by 40% in the city and deliver a 25% overall improvement when compared with a regular gas-only Aspen. The fact it accomplishes this without giving up anything in terms of its towing ability — the Aspen Hybrid will pull a 2,727-kilogram trailer –cements the deal. On the surface, it all seems almost too good to be true. However, a week with the opulent Aspen Hybrid proved it does indeed consume consider-ably less fuel than its regular counterpart. In spite of the frigid temperatures and copious amounts of snow, I managed a test average of 12.7 litres per 100 kilometres. It’s hardly a fuel miser, but it is remarkable given the size of the Hemi (5.7L) and the mass the hybrid system must motivate — the better part of 2,500 kilograms! The two-mode hybrid system is a full-on hybrid that uses a gasoline-powered engine and electric motors to provide the motive force.
The 5.7L V8 Hemi delivers 345 horsepower and 380 pound-feet of torque. The electric side chips in with another 87 hp and 235 lb-ft of torque. When both the gas and electric sides are giving their all, the system boasts a combined output of 385 hp and 380 lb-ft of torque, which helps to explain the Aspen’s towing capability. As its name implies, the hybrid system has two different modes. The first mode is used when the speeds are low and the loads are light. Under these conditions, the Aspen can operate three ways — it can run on the electric side alone, the gasoline-powered Hemi alone or a combination of the two power sources. It also employs all of the usual gas-saving techniques. The engine shuts off whenever the vehicle comes to rest, and it uses regenerative braking to keep the main 300-volt nickel-metal hydride battery charged. Driving about town, I managed to coax the Aspen up to speeds in excess of 50 km/h on electric power alone. This is where the bulk of the fuel savings come from — consuming zero litres of fuel for the kilometres driven is as economical as it gets. The second hybrid mode is used primarily at higher speeds. Here, the Hemi does the bulk of the driving. To maximize fuel efficiency, the Aspen’s engine uses Chrysler’s Multi-displacement System. When the loads are low, the Hemi shuts down four of its eight cylinders. The trick is that the electric motor is then used to help keep the Hemi in its four-cylinder mode for longer periods, which brings obvious benefits. The power is fed to the road through a four-wheel-drive system and a transmission that’s complex to say the very least. In a nutshell, the transmission integrates a conventional four-speed automatic with low-and high-speed electric continuously variable transmission modes. The good news is that all the complexity does not affect the driving sensation. Tromp the accelerator and things begin to happen in a hurry. The Aspen runs to 100 km/h in about eight seconds and has the gusto to accomplish the 80-to-120-km/h passing move in 6.2 seconds. Both times are better than those of the gasoline-only Aspen in spite of the efficiency bonus. Thankfully, the four-wheel-drive system reins in the powertrain’s torquey nature so the electronic nanny does not have to work overtime. 1 2

Chrysler Ends Jobs Bank Pay For About 1,000 Union Workers

February 9th, 2009

January 26, 2009: 01:06 PM ET DETROIT -(Dow Jones)- Chrysler LLC, in a cost-cutting deal struck with the United Auto Workers, suspended its "jobs bank" program Monday, impacting about 1,000 union workers.
The UAW and Chrysler reached a deal late last week to temporarily end the program, which requires the auto maker to "bank" employees rather than firing them during production cutbacks. Workers in the program receive more than 85% of their pay based on state unemployment benefits and "sub pay" provided by the company. Chrysler hasn’t publicly commented on the program’s suspension since UAW discussions are private. UAW sources confirmed the program’s suspension Monday. Closing the jobs bank was one of the terms Chrysler, General Motors Corp. (GM) and the union had to agree to in order to continue accessing low-interest loans from the federal government. Chrysler and GM both received approval last year to access money to avoid bankruptcy. Chrysler has received $4 billion and is waiting on another $3 billion, while GM has received $9.4 billion and hopes to access another $4 billion. Both companies have to submit viability plans on March 31. GM spokesman Tony Sapienza said the auto maker is also in talks with the UAW on suspending the program. He didn’t disclose how many workers are in the program. Ford Motor Co. (F), which didn’t take any federal money, is also seeking similar concessions with the UAW. Ford has about 1,400 workers in the bank as of November, receiving anywhere from 80% to 100% of their pay. Shares of Ford rose 12.2% to $2.02 in trading Monday. GM shares were down 2% at $3.42. -By Jeff Bennett, Dow Jones Newswires; (248) 204-5542; jeff.bennett@ dowjones.com (END) Dow Jones Newswires

Chrysler plans road show to urge dealers to order vehicles

February 9th, 2009

In addition, the Auburn Hills automaker asked dealers to accept new cuts today. Chrysler will no longer reimburse them for filling up the gas tanks of new sold vehicles and has frozen the auto labor rate increase this year that is paid to retailers for performing warranty work. "I think they understand the place we are in and understand the need for all parties to put some skin in the game," said Press, who received a standing ovation during the meeting with about 400 dealers.
Dealers talked of Press appearing in TV ads to push Chrysler vehicles, but he was noncommittal. Chrysler needs 78,000 new U.S. car orders in February and is asking dealers to maintain the same level of inventory in March that they had in December, said Steven Landry, Chrysler’s executive vice president of marketing and sales.

"We think that’s fair," he told reporters. Chrysler is operating with a $4 billion federal loan and must submit a restructuring plan to the government by Feb. 17 that outlines a path to long-term viability. The automaker must show it is making progress toward that goal by March 31 or could be forced to pay back the money, a move that would likely push the company into bankruptcy. Chrysler has asked for another $3 billion in federal aid. The automaker has not recorded any revenue since mid-December when it shut down all of its North American factories for a month to save money. Automakers book revenue when vehicles leave the factory so they need dealers to keep ordering even when plants aren’t running. Sales of Chrysler, Dodge and Jeep products plunged 53 percent last month, and 30 percent for all of last year. Overall, U.S. car and truck sales fell 18 percent in 2008 and 35.5 percent in December. General Motors Corp. has received $9.4 billion in federal money and could get another $4 billion next month. Several dealers said they left the Chrysler meeting feeling refreshed after months of worries. Wesley Lutz, owner of Extreme Dodge/Hyundai in Jackson, went into Sunday’s session prepared not to order any new vehicles this month but changed his mind after listening to Press. Lutz now plans to place an order Tuesday even though he already has more than a 100-day supply of vehicles on his lot. Press made a straight-forward pitch to convince Lutz to order more vehicles. "He said ‘Do you want the Kool-Aid or do you want reality?’" Lutz said after the meeting. "He promised us we’d still be open for business in April. That’s pretty powerful." Dealer Fred Frederick, who owns a Chrysler dealership in Laurel, Md., said he also would order new vehicles despite having a 60-day supply. Frederick and other dealers said they would continue to fill the tanks of new cars sold at their stores even without Chrysler’s help. "You’re not going to get an empty tank," Frederick said. Ford Motor Co. and GM also are scheduled to meet with their dealers today at the convention, which comes amid an increase in dealership closures. GM and Chrysler see consolidating or closing dealerships as a way to cut costs and ensure both can become viable companies. Detroit’s Big Three lost 988 dealerships last year but the firm Grant Thornton LLP says about 2,500 dealerships might close this year –or 10 percent of all new car and light truck dealers in the country.

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